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
- Disadvantage
- Advantage
- Top Down no consultation
- Democratic
- Two Way Communication - Consultation involved
- Advantages
- Increases motivation, all ideas are considered
- Disadvantages
- Long decision time + final decision may not be the best
- Disadvantages
- Increases motivation, all ideas are considered
- Advantages
- Two Way Communication - Consultation involved
- Paternalistic
- Fatherly Approach
- Advantages
- Looks after staff + some consultation
- Disadvantages
- Mostly Autocratic + some staff don't like it
- Advantages
- Fatherly Approach
- Theory X
- Workforce Dislike work
- Need Direction + Control
- Need threat of punishment
- Otherwise, won't work
- Need threat of punishment
- Need Direction + Control
- Workforce Dislike work
- Theory Y
- Opposite of Theory X
- Thinks - Workforce is capable of enjoying work
- + can also be trusted without close supervision
- Thinks - Workforce is capable of enjoying work
- Opposite of Theory X
- Autocratic
- 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
- Inferior
- Changes in the prices of other goods.
- Advertising
- Changes in population
- Changes in Income
- Changes in Taste/Fashion
- Causes of Demand Shift?
- Shift in demand curve - if right (increase) if left (decrease)
- Movement along curve - Change in price
- 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
- Natural phenomena
- Imposition of a tax
- Changes in size of the industry
- Changes in costs
- What causes shifts in supply?
- 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
- A satisfied customer is likely to recommend the business.
- Brand loyalty - if customer is kept satisfied (possibility) - leads to more purchases of products from the business
- Competitive advantage, as rival businesses may not be focussed on customers
- Much more likely to produce a product consumers will want
- Benefits
- Helps businesses to compete successfully with rival suppliers
- When businesses focus their activities and products and services around the consumers wants and needs.
- Entrepreneurs
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