Business and Economics AS Unit1 (RESIT 20th May)

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  • Created on: 18-05-13 11:28
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  • Business and Economics 1B
    • Entrepreneurs
      • Someone who organises a business venture and is responsible for the risks involved.
    • Characteristics
      • Hard Working
      • Motivation
      • Risk-Taking
      • Initiative
      • Creativity
      • Resillience
      • Perseverance
      • Understanding the market
    • Leadership Styles
      • Autocratic
        • Top Down no consultation
          • Advantage
            • Disadvantage
              • Staff may become demotivated
            • Quick Decisions
              • Good for Factory Work
      • Democratic
        • Two Way Communication - Consultation involved
          • Advantages
            • Increases motivation, all ideas are considered
              • Disadvantages
                • Long decision time + final decision may not be the best
      • Paternalistic
        • Fatherly Approach
          • Advantages
            • Looks after staff + some consultation
            • Disadvantages
              • Mostly Autocratic + some staff don't like it
      • Theory X
        • Workforce Dislike work
          • Need Direction + Control
            • Need threat of punishment
              • Otherwise, won't work
      • Theory Y
        • Opposite of Theory X
          • Thinks - Workforce is capable of enjoying work
            • + can also be trusted without close supervision
    • Motives
      • Self Actualisation
      • Profit
      • Creativity
      • Satisfaction of making things happen
      • Independence
      • Ethical/Green considerations
    • Market
      • A market is any medium in which buyers and sellers interact and agree to trade at a price
      • Buyers - are all the people/businesses that want to purchase something.
        • They create the demand for goods/services.
      • Sellers - are the people/businesses that want to sell something.
        • They create the supply of goods/services
      • Demand - the amount of a good/service that people are willing and able to buy at a given price at a given time
        • Movement along curve - Change in price
          • Shift in demand curve - if right (increase) if left (decrease)
            • Causes of Demand Shift?
              • Changes in Taste/Fashion
                • Changes in Income
                  • Changes in population
                    • Advertising
                      • Changes in the prices of other goods.
                        • Inferior
                          • Are goods that are consumed together i.e. a fall in price of computers = rise in demand for computer software
                        • Substitute
                          • Goods consumed in place of another i.e. Kenco coffee demand increases because Nescafe price increase
      • Supply - the amount of a good/service that producers are willing and able to supply, at a given price at a given time.
        • What causes shifts in supply?
          • Changes in costs
            • Changes in size of the industry
              • Imposition of a tax
                • Natural phenomena
                  • New technologies
      • Market orientation
        • When businesses focus their activities and products and services around the consumers wants and needs.
          • Helps businesses to compete successfully with rival suppliers
            • Benefits
              • Much more likely to produce a product consumers will want
                • Competitive advantage, as rival businesses may not be focussed on customers
                  • Brand loyalty - if customer is kept satisfied (possibility) - leads to more purchases of products from the business
                    • A satisfied customer is likely to recommend the business.
                      • Increasing brand loyalty - easier for businesses to charge higher prices

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