business unit 1

to provide goods and services

primary research-collecting data that did not exist before e.g surveys, focus groups, questionaires

secondary research- already existing data e.g google, newspaper, internet, goverment statistics

BENEFITS OF PRIMARY- accurate, up to date,direct customer contact

Benefits of secondary- more general, less time consuming

QUALITATIVE DATA-info about opinions, judgemet and attitudes

QUANTATIVE DATA- data that can be expressed as numbers

whats a market segement?

a group of buyers with similar characteristics or interest e.g age 6 or gender female

Benefits to a business of market segementation?

-meet specific customer needs -focus on a specific group of customers -develop a unique brand image -differentiate their products from competition

What is a market map?

diagram used to position and compare products in a market and identify an unmet needs also known as a gap in the market

WAYS TO COMPETE

-better design

- higher quality

-strong brand image

-wider product range

- more enjoyable experience

WHATS A BRAND

named product which customers can identify a range of products under,customers can also see it as being different from other products. A company can charge higher prices if under a brand and brand images are seen as beint trusted.

HOW CAN A BUSINESS ADD VALUE

-branding

-better design

-improve quality

-greater speed of service

-unique selling point

higher added value, the sooner costs can be paid off ad quicker a business can make profit.  Higher value products will mean the business will be more likely to survive.

UNIQUE SELLING POINT- making your product stand out from competitiom e.g for a sandwhich could be unique combination of ingredients

FRANCHISOR- business that gives franchisee the right to sell a named product or service under the brand

FRANCHISEE-a business which agrees to manufacture, distribute a named product under the rights of a franchisor

BENEFITS OF A FRANCHISE

-higher chance of survival

-training throughout

-establised customer base already

-marketing costs covered bt franchisor

-brand image and reputation already established

- expensive start up costs

-royalty payments

-complicated application

-lack of control and flexibility to give do your own choices and decisions

WHATS AN ENTREPRENEUR?

person who owns and runs their own business and takes risks

WHAT ARE ENTERPRISE SKILLS?

-risk taking-willingness to undertake a new venture-showing initative

Deliberate creativity?

- creating lists

-mind mapping/ brain storming

What is blue skies thinking?

-coming up with as many ideas as possible too solve a problem

what is lateral thinking?

- thinking differently to try and find new unexpected ideas

DEBONOS SIX HAT THEORY

-emotions

-positives - negatives -facts-how to get around a prob -thinking

invention- identifying new products and new ways of making products

innovation-process of transforming new ideas into products thatareready to be sold to a customer.

PATENT-right ofownershp of an invention, design or process when registered with goverment

COPYRIGHT- legal ownership of material such s books or cds meaning they can not be copied by someone else.

TRADEMARKS- LOGO Symbol of a product which cant be copied by someone else.

fixed costs-dont vary with the output of a business e.g salaries

variable costs- change directly with number of products made e.g raw materials

HOW CAN YOU INCREASE PROFIT?

-lower variable and fixed costs

-increase sales price and quantities of sale

WHATS THE ISSUE WITH A LOSS OF PROFIT?

-unable to repay loans

-unablet to pay bills e.g wages

-cant survive

cashflow-money flowing in and out of a business on a day to day basis

WHAT IMPACTS CASH FLOW?

-change in stock levels

-change in costs

-change in sales and demand

HOW TO IMPROVE CASH FLOW?

-increase revenue by improving sales

-negotitate lower prices with suppliers

- persudade a bank to give you a loan

-identify customer needs

-minimise risk

long term sources of finance?

-loans

-personal saving

-profit

-mortgage

-grants

-share capital

SELLING SHARES

a share is a part ownership in a business, shares are sold to raise capital and are entitled to any profit generated (only limited comapanies can do this)

-trade credit - bank over draft -credit cards-

UNLIMITED LIABILITY

-solde trader (business owned by one person) - responsible for any debts -keep 100% profit -100% control

LIMITED LIABILITY

-privated limited company - any debts belong to the business and not the owners, they can only loose the amount they have invested-profits are shared - safer as more chance of survival meaning less risk

WHY HAVE LEGASLATION?

-goverment can keep track of business activity

-taxes can be collected-protrct business from illegal activity

WHAT ARE THE LEGAL REQUIREMENTS OF A BUSINESS?

-register and trade under a unique name -keep records of sales and purchases-register with customs - pay appropriate level of tax

WHAT ARE THE TAXES ON A SMALL BUSINESS?

-VAT - income tax -national insurance -corparation tax

-dispatch orders quickly

-polite and friendly

-responding immedietly to any complaints

-being conveniet

providing a personal service

-going that extra mile

-being 100% accurate

BENEFITS OF CUSTOMER SATISFACTION?

-repeat purchase -loyalty- can charge a premium price- better business reputation

HOW TO KEEP REPEAT PURCHASE?

-lower prices than competitors-easy and convenient service- promotions and special offers

-paying a fair and competitive wage

-providing good working conditions

-providing perks e.g cars

-encourage team work and relationships

-training and nuturing staffdevelopment

EMPLOYMENT LEGISLATION

-recruitment-no discrminiation on sex, age, disability

-pay equally

-working hours must be fair and safe

individual or group that is affected or interested by a business

-owners

-managers

-local people

-competition

-goverment

-suppliers

-workers