BTEC Business

RENT

MONEY

ADVERTISING

GAS/ELECTRICITY

WAGES

STOCK

COSTS OCCURING MONTHLY

COSTS THAT SO NOT CHANGE.

MONTHLY DIRECT DEBITS FOR UTILITIES

INSURANCE

LOAN REPAYMENT

COSTS THAT CAN INCREASE WITH ACTIVITY LEVELS.

materials

postage

stock price

variable costs= cost of unit x number of units produced

FIXED COSTS ADD VARIABLE COSTS

Whats going into the business slaes, stock,adverts etc

REVENUE = SALES X UNIT PRICE

BUYING STUFF

WAGES

OVERHEADS

Everyday running costs

What is made and lost in business.

PROFIT= REVENUE - EXPENSES

A break even chart will tell you how many units are to be produced and sold before the business can make money.

TO CHECK THAT PERFORMANCE IS ON PLAN.

BALANCING WHAT IS GOING INTO AN ACCOUNT AND WHATIS GOING OUT.

IMPORTANT BECAUSE CASH BUYERS PAY STRAIGHT AWAY BUT CREDIT TRANSACTIONS MEANS THE BUYER CAN PAY USUALLY IN 30 DAYS.

CAHS BALANCE WILL FLUCTUATE YOU NEED TO TIME YOUR INVOICES, REDUCE STOCK AT RELEVANT TIMES, UP CASH SALES ETC.

THE MONEY MADE FROM SELLING AN ITEMS AFTER PRODUCE COST.

A STATEMENT SHOWING ASSETS, LIABILITIES,SUPPLIERS,STAKEHOLDERS,CUSTOMERS, AND BANK MANAGER.

UNDERSTANDING WHAT CUSTOMER WANTS

IDENTIFY TARGET MARKET

BEST SELLING PRODUCTS

CAN PROMOTE THE BUSINESS

TO BOOST SALES

PROMOTE NEW BRANDS

TO BE COMPETITIVE

CHECK OUT COMPETITORS

DESIGN 

SPECIFIC,MEASURABLE,ACHIEVABLE,REALISTIC,TIME

B2C BUSINESS TO CONSUMER 

B2B BUSINESS TO BUSINESS MARKET

NICHE

GOODS

SERVICES

It sthe way a business makes MONEY and ADDS VALUE  to the business

BRANDING = COLOUR,LOGO,IMAGES,NAME,SYMBOL

IMPORTANT BECAUSE:

DISTINCTIVE LOGO

VALUES

MESSAGE

STANDS OUT FROM ITS COMPETITOR

MAY HAVE CELEBRITY ENDORSEMENT

BENEFIT FROM REPEAT PURCHASES

CAN CHARGE A HIGHER PRICE

STAND OUT/CAN BE SEEN EASILY

TO GATHER INFORMATION ABOUT BUSINESS AND CUSTOMERS. TO SEE A GAP IN MARKET, BENEFIT FROM OPPORTUNITY.

QUANTITIVE DATA

INFORMATIVE SECONDARY DATA

QUALITIVE DATA VIEWS AND OPINIONS OF PEOPLE

PRIMARY DATA

QUESTIONAIRES/INTERVIEWS

P - POLITICAL

E - ECONOMIC

S - SOCIAL

T - TECHNOLGICAL

L - LEGAL

E - ENVIRONMENTAL

A combination of the following to help sell products

P - product

P - place

P - price

P - promotion

USP - Unique selling point

Develop,Introduction,growth,maturity and decline.

What is extension strategy? extend the life of a product.

A range of products produced.

Why analyse them? to check they are selling and to see if the products needs development.

A method to charge for the product.

Mark up pricing

premuim pricing

penetration pricing

competitive pricing

the price increases and decreases by the demad of the product.

THE METHOD OF GETTING PRODUCT TO CONSUMER

ONLINE WEBSITE

SHOP.MARKET STALL.FACTORY.

THREE INFLUENCES

NEAR TO SUPPLIERS

GOOD TRANSPORT LINKS

AVAILABILITY OF LABOUR

Social media - facebook, UTube,Twitter

Guerilla - Flash mob can lead to free publicity.

Selling products online and offering customer service.

All linked by technology

cheaper

24 hours a day

instant and prompt