Buisness Paper 1
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- Created on: 19-05-22 16:20
What are the Characteristics of an Entreprenuer?
- Creativity (Invention or Innovation)
- Risk taking (risk of money multiply or lost)
- Determination (put a lot of time into the business.)
- Confidence (In their skills and product)
- Risk taking (risk of money multiply or lost)
- Determination (put a lot of time into the business.)
- Confidence (In their skills and product)
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What is the role of a business plan?
- Identifying markets
- Helping with finance
- Identifying resources that a business needs to operate.
- Achieving business aims and objectives.
- Helping with finance
- Identifying resources that a business needs to operate.
- Achieving business aims and objectives.
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What is the contents of a business plan?
- The business idea.
- People running the business such as experience.
- Market research.
- Finance (all the costs identified and calculated)
- Objectives of the business.
- The target market
- Competitors.
- People running the business such as experience.
- Market research.
- Finance (all the costs identified and calculated)
- Objectives of the business.
- The target market
- Competitors.
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What is the usefulness of a business planning?
It will be able to reduce risks to business and have a higher chance of success.
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What is the importance of a business plan?
If a business does not complete a plan, it will not be able to identify the correct market or resources and staff it needs to succeed. being costly for the business.
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What is a sole trader?
They are owned by one person.
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Adv of sole traders.
- Easy to set up.
- Finance required.
- Control
- Profits
- Financial information.
- Finance required.
- Control
- Profits
- Financial information.
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Div of sole traders.
-Unlimited liability
- Illness
- Shortage of capital
- Hours of work
- Skill shortage
- Continuity.
- Illness
- Shortage of capital
- Hours of work
- Skill shortage
- Continuity.
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What is a partnership?
When a business is owned by at least two partners.
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Adv of Partnerships?
- More capital
- Easy to set up
- More skills in the business
- Workload is shared
- Financial information is private.
- Easy to set up
- More skills in the business
- Workload is shared
- Financial information is private.
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Div of partnerships?
- Profit is shared
- Unlimited liability
- Shortage of capital
- Slower decision-making
- Continuity
- Unlimited liability
- Shortage of capital
- Slower decision-making
- Continuity
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What is a Ltd?
Private limited company and owners are shareholders, shares can only be sold by other shareholders.
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Adv of Ltd?
- Limited Liability
- Continuity
- Can raise money more easily
- Control over share sale.
- Continuity
- Can raise money more easily
- Control over share sale.
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Div of Ltd?
- Financial information is available to the public.
- Administration (a lot more complex and costly to set up)
- Sales of shares is restricted. (Restricts capital)
- Dividends paid to share holders.
- Administration (a lot more complex and costly to set up)
- Sales of shares is restricted. (Restricts capital)
- Dividends paid to share holders.
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What is an PLC?
Public Limited Company, they sell their shares to everyone on the London stock exchange.
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Adv of a plc?
- Ability to raise alot of capital.
- Easier to borrow money
- Limited liabillity for shareholders.
- Easier to borrow money
- Limited liabillity for shareholders.
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Div of plc?
- Possibility of takeover
- Cost of setting up and operating
- Problems of size
- Financial information available to public.
- Cost of setting up and operating
- Problems of size
- Financial information available to public.
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What are aims and objectives of a business?
Aims are the goal that objectives are for, they are set goal that business wants to work towards.
An objective is an step towards that goal, making progress little by little.
An objective is an step towards that goal, making progress little by little.
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Why does a business objectives changes as it starts out?
Its main objective may have been to survive this is because of:
- Competition from other businesses.
- Establishing its name to gain attraction of customers.
- Competition from other businesses.
- Establishing its name to gain attraction of customers.
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Why does a business objectives changes as it evolves?
- Make more profit than surviving.
- Profit used for growth.
- May want to change ownership.
- Not want to grow and want to focus on customer service and improving itself.
- May lose sight of how it is treating its customers.
- Profit used for growth.
- May want to change ownership.
- Not want to grow and want to focus on customer service and improving itself.
- May lose sight of how it is treating its customers.
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What are the roles of internal stake holders?
- Owners - managing the business and employees.
- Employees - Working for the business to sell its products/services.
- Employees - Working for the business to sell its products/services.
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What are the roles of external stakeholders?
- Customers - rely on business to give them products and services.
Suppliers - Supplying the business with goods.
- Government - Taxing the business as well making sure they are legal.
- Local community - interest in business development, will affect repu
Suppliers - Supplying the business with goods.
- Government - Taxing the business as well making sure they are legal.
- Local community - interest in business development, will affect repu
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What is the effect that business activity has on stakeholders?
- May need more employees satisfying the locals.
- Customers have a wider range of products if a business is expanding.
- Owners will have higher profit.
- Suppliers benefit from the business expanding.
If a business is however is failing the opposite wil
- Customers have a wider range of products if a business is expanding.
- Owners will have higher profit.
- Suppliers benefit from the business expanding.
If a business is however is failing the opposite wil
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What is organic growth?
Organic growth is by increasing sales of a business, it is internal.
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Examples of organic growth?
- Increasing output
- Gaining new customer
- Developing new products
- Increasing market share.
- Gaining new customer
- Developing new products
- Increasing market share.
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What is external growth?
A business can grow externally by a merger or takeover.
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What is a merger?
Where two business combine to become one whole business.
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What is a Takeover?
A takeover occurs when one business buys control of another, such as buying 50% of a company.
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What is Horizontal Takeover?
when a business takes over another business to control more of the market, it may lead to some communication problems.
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What is a Vertical takeover?
Here, the business will merge with a business who supplies it (backwards vertical growth), or a business that it supplies (forwards vertical growth).
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What is Diversification?
- When the business merges with or take over a business with which it has no real connection, this is to spread risk.
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What is the purpose of market research?
It is in order to aim at the specific market and have the business fit those demands of the market.
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What examples of Primary research methods?
- Questionnaires.
- Interviews.
- Trials.
-Focus groups.
- Interviews.
- Trials.
-Focus groups.
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What examples of secondary research methods?
- Websites
- Newspapers and magazines
- Census
- Internal data (past records)
- Newspapers and magazines
- Census
- Internal data (past records)
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Adv and Div of Focus groups.
Adv: Because focus groups are small groups of people who are carefully selected
Div: Though carefully chosen are still small groups which makes it costly and time consuming for each person.
Div: Though carefully chosen are still small groups which makes it costly and time consuming for each person.
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Adv and Div of trials.
Adv: As trials are conducted in small area, a business can save money by having a trial for a product or service just in case the customer doesn't want it.
Div: Trials are costly to set up, the area chosen must full reflect the target market.
Div: Trials are costly to set up, the area chosen must full reflect the target market.
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How do you use segmentation to target customers.
We can split the market into different parts and helps the business identify the target market more effectively.
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What are examples of segmentation are there?
- Age
- Gender
-Income
-Location
- Lifestyle.
- Gender
-Income
-Location
- Lifestyle.
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What is the marketing mix?
The 4Ps
- Price
- Product
- Place
- Promotion.
- Price
- Product
- Place
- Promotion.
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What are the 5 pricing methods?
- Cost plus pricing (Looking at their costs to make the profit and charge how much extra to sell it)
- Penetration pricing (reducing the price when first introduce to enter the market short period of time)
- Skimming (New products have high price)
- Promo
- Penetration pricing (reducing the price when first introduce to enter the market short period of time)
- Skimming (New products have high price)
- Promo
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What is the product life cycle?
It is the time span which customers will want them.
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What are the 4 stages of the product life cycle?
1. Introduction (product is introduced)
2. Growth (sales show rapid growth)
3. Maturity (peak)
4. Decline (sales fall)
2. Growth (sales show rapid growth)
3. Maturity (peak)
4. Decline (sales fall)
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What is the importance of image and design?
Having a great design that the customers feels attracted to and want to be associated with, an image is the reputation of the product. If a product has a good image and design it can be more successful.
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What is the importance of branding?
Branding comes with familiarity, the more familiar we are with the symbol such as a trade mark, the more likely we are to buy it compared to others that we haven't heard of.
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How do we extend the product life cycle?
- Advertising the product more widely, such as putting it in a more modern packaging.
- Reducing the price will make the product more attractive to consumers.
- Other markets may be developed, and might be imported into other countries.
- Reducing the price will make the product more attractive to consumers.
- Other markets may be developed, and might be imported into other countries.
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What is the importance of promotion?
Promotion is concerned with how a business informs its customers about a product or service.
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What is advertising media?
Where a business carefully choose where it advertises its products or services, this places are called advertising media. considering these things.
- The cost of advertising.
- The target market for the product.
- Whether the advertisement is part of a ca
- The cost of advertising.
- The target market for the product.
- Whether the advertisement is part of a ca
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What types of advertising media is there?
- Social media
- Printed media
- Radio
- Websites
- Television.
- Printed media
- Radio
- Websites
- Television.
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How is the marketing mix is used to inform and implement business decisions?
- Price - Can affect on which pricing methods are used and adjust.
- Place - where the method of distribution is used, how will the customers get their products? affects how the business is placed.
- Product - When to introduce a new product and when to i
- Place - where the method of distribution is used, how will the customers get their products? affects how the business is placed.
- Product - When to introduce a new product and when to i
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What is the role of human resources?
Human Resources is the department where they employ employees, identifying skill and retain employees.
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What changes that a business may need to consider when looking at their human resources.
- Workers may have to be replaced.
- The business may grow or shrink.
- The business may change its method of production.
- The business may decide to relocate.
- The budget for workers may change.
- Changes in the law may affect employment.
- The business may grow or shrink.
- The business may change its method of production.
- The business may decide to relocate.
- The budget for workers may change.
- Changes in the law may affect employment.
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What things that the business will have to think about when planning their human resource needs?
- The number of workers it needs.
- The number of workers who will work full or part time.
- When the workers be needed.
- The skill the workers would have.
- How many staff members the business can afford to employ.
- The number of workers who will work full or part time.
- When the workers be needed.
- The skill the workers would have.
- How many staff members the business can afford to employ.
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What are the 2 organisational structures?
Flat organisation and Tall organisations./w
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Adv and Div of a flat organisation?
Adv:
- Fewer layers mean Faster communication
-It is easier to share ideas because people are more likely to know the bosses.
Div.:
- Manager will find it harder supervising people.
- Workers wont have a clear idea who they are responsible to
- May put a
- Fewer layers mean Faster communication
-It is easier to share ideas because people are more likely to know the bosses.
Div.:
- Manager will find it harder supervising people.
- Workers wont have a clear idea who they are responsible to
- May put a
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Adv and Div of a Tall organisation?
Adv:
- Workers will be clear who they are responsible to
- There will be a lot of opportunity for the employee to be promoted throughout the hierarchy.
Div:
- Communication won't be as clear
- More mistakes in communication
- Ideas aren't as well passed
- Workers will be clear who they are responsible to
- There will be a lot of opportunity for the employee to be promoted throughout the hierarchy.
Div:
- Communication won't be as clear
- More mistakes in communication
- Ideas aren't as well passed
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What is the importance of business communications?
Communication is important is business because it allows the business to be as efficient and synchronised for operation.
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How does Digital communication influences Marketing?
The digital communication has led to the use of websites and social media as well the internet to allow promotion though these platforms. And be able to reach globally and target people based on which plat form they are on. Competition has also increased
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How does Digital communication influences Human Resources?
The recruitment and selection of staff now involves digital communications for many businesses. Jobs are advertised on websites, applications received and invitations sent out for selection procedures. People can also be interviewed by using vide-conderen
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How does Digital communication influences Operations?
- Production is now highly automated, which allows for less staff to be employed and Banks to be able to provide banking service using digital communications.
- Quality control has also been improved as machines can inspect the products.
- Increase compe
- Quality control has also been improved as machines can inspect the products.
- Increase compe
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Why do my do businesses recruit?
- Because the firm is starting up or growing.
- To replace staff who leave
- The business may have a skill shortage.
- To replace staff who leave
- The business may have a skill shortage.
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What are the methods of selection?
- Letter of application.
- Application form
- CV
- Interviews
- Tests and presentations
- Group activities
- References
- Application form
- CV
- Interviews
- Tests and presentations
- Group activities
- References
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Why is it important for employees to be motivated and retentive?
- High employee performance.
- High retention and low turnover of workers.
- Ease of recruitment of new workers.
- Less need for supervision.
- Low absenteeism
- Reduced waste of raw materials.
- Better delivery of services
- Increased custom
- High retention and low turnover of workers.
- Ease of recruitment of new workers.
- Less need for supervision.
- Low absenteeism
- Reduced waste of raw materials.
- Better delivery of services
- Increased custom
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What are the 4 Financial methods of motivation?
- Pay
- Bonus
- Profit sharing
- Fringe benefits.
- Bonus
- Profit sharing
- Fringe benefits.
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Why do businesses train their workers?
- Technical skill
- Communication skill
- Health and safety training
- Diversity in the workplace.
- Management skills
- New workers
- Group working
- Knowledge of new products
- Flexibility
- Retaining.
- Communication skill
- Health and safety training
- Diversity in the workplace.
- Management skills
- New workers
- Group working
- Knowledge of new products
- Flexibility
- Retaining.
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What are the different training methods?
- On the job training.
- Off the job training
- Induction
- Off the job training
- Induction
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What are examples of off the job training?
When employees are trained or developed away from their work, this while being trained but not doing any jobs such as:
- Lectures
- Demonstrations
- Team building
- Reading and reflecting on online materials
- Roleplay or simulation.
- Lectures
- Demonstrations
- Team building
- Reading and reflecting on online materials
- Roleplay or simulation.
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What are examples of induction training?
The purpose of induction training is usually about introducing them to their workplace to help them settle in.
- They get to know colleagues
- They are made to feel welcome
- They get to know the place of work.
- They learn the culture of the business
- They get to know colleagues
- They are made to feel welcome
- They get to know the place of work.
- They learn the culture of the business
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What is the adv and div of on the job training?
adv:
- Trainee is given individual training so it improves their performance.
- It is cheaper
- The trainee produces good and services while being there.
Div:
- The trainer may need to leave work to help the trainee.
- Quality of work decreased.
- Not sui
- Trainee is given individual training so it improves their performance.
- It is cheaper
- The trainee produces good and services while being there.
Div:
- The trainer may need to leave work to help the trainee.
- Quality of work decreased.
- Not sui
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What is the Adv and Div of off-the-job training?
Adv:
- Experts may provide the training.
- The worker often enjoy the change of environment.
-Workers feel valued when trained by the firm.
Div:
- Usually expensive.
- Absence from work means worker is not producing goods.
- There is a risk that the emplo
- Experts may provide the training.
- The worker often enjoy the change of environment.
-Workers feel valued when trained by the firm.
Div:
- Usually expensive.
- Absence from work means worker is not producing goods.
- There is a risk that the emplo
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What is staff development?
Is about developing a person over time, such as getting them more qualified specific to the job.
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What are the three types of staff development?
- Apprenticeships
- Vocational Qualifications
- Academic Qualifications
- Vocational Qualifications
- Academic Qualifications
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Adv and Div of apprenticeships to businesses.
Adv:
- Good way to recruit people
- Government could help and pay cost for apprenticeships.
- helps avoid skill shortages
Div:
- if the apprentice is not motivated, the business has wasted money on them.
- It costs the business to develop an apprentice.
-
- Good way to recruit people
- Government could help and pay cost for apprenticeships.
- helps avoid skill shortages
Div:
- if the apprentice is not motivated, the business has wasted money on them.
- It costs the business to develop an apprentice.
-
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Adv and Div of apprenticeships to business.
Adv:
-The apprentice can gain qualifications that can help them progress their career.
- Apprentices earn an income while learning.
- The learning involved is often both practical and theoretical.
Div:
- Pay is usually low while learning.
- Qualification
-The apprentice can gain qualifications that can help them progress their career.
- Apprentices earn an income while learning.
- The learning involved is often both practical and theoretical.
Div:
- Pay is usually low while learning.
- Qualification
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How can a person be discriminated in business?
- Disability
- Ethnicity
- Gender
- Religion
- Sexual orientation
- Hours worked
-Holiday entitlement.
- Ethnicity
- Gender
- Religion
- Sexual orientation
- Hours worked
-Holiday entitlement.
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What will a worker will do if their rights have been breached?
They can take the employer to an employment tribunal a panel of people who analyse evidence to either impose fines or award compensation, Often the worker is supported by a trade union if a member of one.
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What act was it that covers a lot of discrimination?
The 2010 Equality Act.
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How will business benefit from complying with employment laws?
- Workers will see the business as a good employer and will be motivated if firms treat them according to the laws. This may make the business more efficient.
- Firms with good reputation can easily find to attract new workers.
- If workers are treated re
- Firms with good reputation can easily find to attract new workers.
- If workers are treated re
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Other cards in this set
Card 2
Front
What is the role of a business plan?
Back
- Identifying markets
- Helping with finance
- Identifying resources that a business needs to operate.
- Achieving business aims and objectives.
- Helping with finance
- Identifying resources that a business needs to operate.
- Achieving business aims and objectives.
Card 3
Front
What is the contents of a business plan?
Back
Card 4
Front
What is the usefulness of a business planning?
Back
Card 5
Front
What is the importance of a business plan?
Back
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