The Dynamic Nature of Business - Collins Education images... · The Dynamic Nature of Business Risk and Reward The Role of Business Enterprise Customer Needs Market Research Name

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





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.






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.






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.






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.






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.






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?


between quality control and

quality assurance?

What is customer

engagement?

Give an alternative name for

sales revenue.






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.


between internal recruitment

and external recruitment?

Name two types of training.

Name three different ways to

motivate staff.






Documents

The Dynamic Nature of Business - Collins Education images... · The Dynamic Nature of Business Risk and Reward The Role of Business Enterprise Customer Needs Market Research Name