the dynamic nature of business - collins education images... · the dynamic nature of business risk...
TRANSCRIPT
The
Dyn
amic
Nat
ure
of B
usin
ess
Risk
and
Rew
ard
The
Role
of B
usin
ess
Ente
rpri
seCu
stom
er N
eeds
Mar
ket R
esea
rch
Name two things a dynamic
business does.
What factors can contribute
to business failure?
What is the difference
between goods and services?
Name any three customer
needs.
What is market research?
1
2
3
4
5
The
Dyn
amic
Nat
ure
of B
usin
ess
Risk
and
Rew
ard
The
Role
of B
usin
ess
Ente
rpri
seCu
stom
er N
eeds
Mar
ket R
esea
rch
1
2
3
4
5
A dynamic business adapts to:
• the changing needs of
customers
• developments in the
market.
Business failure can be because of: • entrepreneurs not knowing their
market well• entrepreneurs not having
enough money to start a business• poor decision making by
entrepreneurs• competition or goods/services
not meeting the needs of customers.
A good is a physical product
that can be touched, e.g. a
pair of jeans.
A service is non-physical, e.g.
a piano lesson.
Customer needs include:
• price
• quality
• choice
• convenience
• service.
Market research is the process
of collecting information
about:
• what consumers want
• market trends
• competitors.
Edexcel GCSE • Business
Edexcel GCSE • Business
Edexcel GCSE • Business
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Edexcel GCSE • Business
Mar
ket S
egm
enta
tion
Mar
ket S
egm
enta
tion
The
Com
peti
tive
En
viro
nmen
tBu
sine
ss A
ims
and
Obj
ecti
ves
Busi
ness
Rev
enue
s,
Cost
s an
d Pr
ofit
s
How are markets segmented?
When do businesses use
market mapping?
How do businesses compete
with each other?
What does SMART stand for?
What is break even?
6
7
8
9
10
Mar
ket S
egm
enta
tion
Mar
ket S
egm
enta
tion
The
Com
peti
tive
En
viro
nmen
tBu
sine
ss A
ims
and
Obj
ecti
ves
Busi
ness
Rev
enue
s,
Cost
s an
d Pr
ofit
s
6
7
8
9
10
Markets are segmented by:
• location
• demographics
• lifestyle
• income
• age.
Market mapping is used to
identify where a product
will be placed in a market
compared to other similar
products in the same market.
Businesses compete with each
other using:
• price
• quality
• location
• product range
• customer service.
Specific
Measurable
Achievable
Realistic
Timely
Break even is the level of
output where total revenues
are equal to total costs; this is
where neither a profit or loss is
made, i.e. how many units need
to be sold to cover all costs but
not yet make a profit.
Edexcel GCSE • Business
Edexcel GCSE • Business
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Edexcel GCSE • Business
Cash
and
Cas
h-flo
wSo
urce
s of
Bus
ines
s Fi
nanc
eTh
e O
ptio
ns fo
r Sta
rtup
s an
d Sm
all B
usin
esse
sBu
sine
ss L
ocat
ion
The
Mar
keti
ng M
ix
What is cash-flow?
Name two types of short-term
finance.
Define limited liability.
What factors influence
business location?
What is the marketing mix?
11
12
13
14
15
Cash
and
Cas
h-flo
wSo
urce
s of
Bus
ines
s Fi
nanc
eTh
e O
ptio
ns fo
r Sta
rtup
s an
d Sm
all B
usin
esse
sBu
sine
ss L
ocat
ion
The
Mar
keti
ng M
ix
11
12
13
14
15
Cash-flow is the flow of cash
in and out of a business.
Short-term finance can be:
• an overdraft facility
• trade credit.
With limited liability:
• there is a legal difference
between the business
owner and the business
• if the business incurs debts,
the debts belong to the
business; owners only
lose the money they have
invested in the business.
Business location can be
influenced by:
• the type of business
• the market
• labour
• materials
• competitors.
The marketing mix is a
combination of the following
factors:
• price
• product
• promotion
• place.
Edexcel GCSE • Business
Edexcel GCSE • Business
Edexcel GCSE • Business
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Busi
ness
Pla
nsBu
sine
ss S
take
hold
ers
Tech
nolo
gy a
nd B
usin
ess
Legi
slat
ion
and
Busi
ness
The
Econ
omy
and
Busi
ness
Name four elements of a
business plan.
Who are the internal
stakeholders of a business?
What is e-commerce?
Under the Consumer Rights
Act, when does a consumer
have the right to a refund?
What does GDP stand for?
16
17
18
19
20
Busi
ness
Pla
nsBu
sine
ss S
take
hold
ers
Tech
nolo
gy a
nd B
usin
ess
Legi
slat
ion
and
Busi
ness
The
Econ
omy
and
Busi
ness
16
17
18
19
20
A business plan should
contain information about:
the business idea; the
business’s aims and objectives;
the target market; forecast
revenue, costs and profits;
cash-flow forecast; sources
of finance; location; the
marketing mix.
Internal stakeholders are:
• the owners
• the managers
• the employees.
E-commerce is the activity of
buying and selling goods and
services online.
The Consumer Rights Act
states the right to a refund if
the goods or services are not:
• of a satisfactory quality
• fit for purpose
• as described.
GDP stands for:
Gross Domestic Product.
Edexcel GCSE • Business
Edexcel GCSE • Business
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Edexcel GCSE • Business
Exte
rnal
Influ
ence
sBu
sine
ss G
row
thCh
ange
s in
Bus
ines
s A
ims
and
Obj
ecti
ves
Busi
ness
and
G
loba
lisat
ion
Ethi
cs, t
he E
nvir
onm
ent
and
Busi
ness
What is inflation and is it
good for business?
Define economy of scale.
In business, what are aims
and objectives?
What is globalisation?
How does a business act in an
ethical way?
21
22
23
24
25
Exte
rnal
Influ
ence
sBu
sine
ss G
row
thCh
ange
s in
Bus
ines
s A
ims
and
Obj
ecti
ves
Busi
ness
and
G
loba
lisat
ion
Ethi
cs, t
he E
nvir
onm
ent
and
Busi
ness
21
22
23
24
25
Inflation means a rise in
prices. Inflation is bad for
business because it increases
costs and reduces profits.
Economy of scale is the
cost advantage gained
by expanding the level of
production.
Aims are the long-term goals
of a business.
Objectives are the short-term
steps a business takes to
realise its long-term goals.
Globalisation is when
organisations and businesses
trade internationally.
A business can be ethical
by paying a fair wage to its
workers and by ensuring that
its production does not harm
the environment, animals or
people.
Edexcel GCSE • Business
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Prod
uct
Pric
ePr
omot
ion
Plac
eU
sing
the
Mar
ketin
g M
ix to
M
ake
Busi
ness
Dec
isio
ns
What three elements make up
the design mix?
Name two influences on
pricing strategies.
What is viral advertising?
What is the distribution
channel?
Define competitive
advantage.
26
27
28
29
30
Prod
uct
Pric
ePr
omot
ion
Plac
eU
sing
the
Mar
ketin
g M
ix to
M
ake
Busi
ness
Dec
isio
ns
26
27
28
29
30
The design mix is made up of:
• function
• aesthetics (appearance)
• cost.
Pricing strategies can be
influenced by:
• technology
• competition
• market segments
• product life cycle.
Viral advertising relies on
consumers to promote or
advertise a good or service via
email or social media.
The distribution channel
is the route that a product
takes from where it is
manufactured to where it is
sold.
Competitive advantage is an
advantage held by a business
that allows it to perform better
than its competitors, e.g. by
using new technology, by
making innovative products, or
by using effective promotion.
Edexcel GCSE • Business
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Busi
ness
Ope
rati
ons
Wor
king
wit
h Su
pplie
rsM
anag
ing
Qua
lity
The
Sale
s Pr
oces
sBu
sine
ss C
alcu
lati
ons
31
32
33
34
35
Busi
ness
Ope
rati
ons
Wor
king
wit
h Su
pplie
rsM
anag
ing
Qua
lity
The
Sale
s Pr
oces
sBu
sine
ss C
alcu
lati
ons
31
32
33
34
35
Disadvantages of batch
production include:
• workers become
demotivated due to
performing the same tasks
over and over
• a delay in one batch can
affect the production of
another batch.
The x-axis on a bar gate stock
graph shows time in weeks.
The y-axis on a bar gate stock
graph shows the unit of stock.
With quality control, finished
products are inspected to see if
they meet minimum standards.
Quality assurance is
incorporated into the
production process and is
checked at every stage by
workers.
Customer engagement
is concerned with the
experiences of customers
with a business or brand
and the connection that is
built through nurturing and
managing this relationship.
Sales revenue is also known as:
• income
• revenue
• turnover.
Name a disadvantage of
batch production.
What do the axes on a bar
gate stock graph show?
What is the difference
between quality control and
quality assurance?
What is customer
engagement?
Give an alternative name for
sales revenue.
Edexcel GCSE • Business
Edexcel GCSE • Business
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Edexcel GCSE • Business
Und
erst
andi
ng B
usin
ess
Perf
orm
ance
Org
anis
atio
nal
Stru
ctur
esEf
fect
ive
Recr
uitm
ent
Effe
ctiv
e Tr
aini
ng a
nd
Dev
elop
men
tM
otiv
atio
n
36
37
38
39
40
Und
erst
andi
ng B
usin
ess
Perf
orm
ance
Org
anis
atio
nal
Stru
ctur
esEf
fect
ive
Recr
uitm
ent
Effe
ctiv
e Tr
aini
ng a
nd
Dev
elop
men
tM
otiv
atio
n
36
37
38
39
40
Quantitative business data is
numerical and statistical data.
Organisational structure can
be:
• hierarchial (also known
as tall), which has lots of
levels of authority
• flat, which has few levels
of authority.
Internal recruitment is when
a business appoints someone
to a job who already works
for the business.
External recruitment is when
a business appoints someone
to a job from outside the
business.
Training can include:
• formal training
• informal training
• self-learning
• observation.
The following methods can be used to motivate staff: • financial rewards, e.g.
bonuses• fringe benefits, e.g. free gym
membership• promotion• praise• job enrichment• job rotation• autonomy.
What type of data is
quantitative business data?
Define the two types of
organisational structure.
What is the difference
between internal recruitment
and external recruitment?
Name two types of training.
Name three different ways to
motivate staff.
Edexcel GCSE • Business
Edexcel GCSE • Business
Edexcel GCSE • Business
Edexcel GCSE • Business
Edexcel GCSE • Business