BTEC Business

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What is Start up Cost?

RENT

MONEY

ADVERTISING

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What is Running costs?

GAS/ELECTRICITY

WAGES

STOCK

COSTS OCCURING MONTHLY

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What is fixed costs?

COSTS THAT SO NOT CHANGE.

MONTHLY DIRECT DEBITS FOR UTILITIES

INSURANCE

LOAN REPAYMENT

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What are variable costs?

COSTS THAT CAN INCREASE WITH ACTIVITY LEVELS.

materials

postage

stock price

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Caluclating costs - variable

variable costs= cost of unit x number of units produced

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What is total cost? and how to work it out.

FIXED COSTS ADD VARIABLE COSTS

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What is revenue?

Whats going into the business slaes, stock,adverts etc

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How to calculate revenue?

REVENUE = SALES X UNIT PRICE

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Types of expenditure

BUYING STUFF

WAGES

OVERHEADS

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What is overheads?

Everyday running costs

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What is profit and loss?

What is made and lost in business.

PROFIT= REVENUE - EXPENSES

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Break even charts

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

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What is budget control?

TO CHECK THAT PERFORMANCE IS ON PLAN.

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Calculating inflow/outflow

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.

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What is gross profit?

THE MONEY MADE FROM SELLING AN ITEMS AFTER PRODUCE COST.

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What is a financial statement?

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

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What is marketing and why is it important?

UNDERSTANDING WHAT CUSTOMER WANTS

IDENTIFY TARGET MARKET

BEST SELLING PRODUCTS

CAN PROMOTE THE BUSINESS

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How do businesses use marketing?

TO BOOST SALES

PROMOTE NEW BRANDS

TO BE COMPETITIVE

CHECK OUT COMPETITORS

DESIGN 

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What is SMART objectives?

SPECIFIC,MEASURABLE,ACHIEVABLE,REALISTIC,TIME

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What is B2B and B2C?

B2C BUSINESS TO CONSUMER 

B2B BUSINESS TO BUSINESS MARKET

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Types of Markets

NICHE

GOODS

SERVICES

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What is a Business Model?

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

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What is Branding?

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

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What is market research and why do it?

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

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What is PESTLE analysis?

P - POLITICAL

E - ECONOMIC

S - SOCIAL

T - TECHNOLGICAL

L - LEGAL

E - ENVIRONMENTAL

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What is marketing mix?

A combination of the following to help sell products

P - product

P - place

P - price

P - promotion

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Product differentiation

USP - Unique selling point

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Product Lifestyle

Develop,Introduction,growth,maturity and decline.

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

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What is a Product Portfolio?

A range of products produced.

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

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Pricing strategies

A method to charge for the product.

Mark up pricing

premuim pricing

penetration pricing

competitive pricing

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Elasticity of demand.

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

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Distribution

THE METHOD OF GETTING PRODUCT TO CONSUMER

ONLINE WEBSITE

SHOP.MARKET STALL.FACTORY.

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Place - Location

THREE INFLUENCES

NEAR TO SUPPLIERS

GOOD TRANSPORT LINKS

AVAILABILITY OF LABOUR

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Viral marketing and guerilla advertising

Social media - facebook, UTube,Twitter

Guerilla - Flash mob can lead to free publicity.

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E Business and E-Commerce

Selling products online and offering customer service.

All linked by technology

cheaper

24 hours a day

instant and prompt

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