BUSINESS STUDIES UNIT 1

ENTREPRENEURIAL CHARACTERISTICS
Hard worker/ co-operative/ enthusiastic
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ENTREPRENEURIAL MOTIVES
Earn money/ work less hours/ (the reason for why people do things)
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AUTOCRATIC LEADERSHIP
-the leader makes all the decisions without referring to anyone else / centralisation/ others have no say } more ideas,get them to agree, ,miss out on useful insights, motivated if asked
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DEMOCRATIC LEADERSHIP
-decentralised, the leader encourages other people when it comes to decision making/ more ideas}increases motivation
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PATERNALISTIC LEADERSHIP
-the leader acts in a paternal mannor (father figure) / makes all decisions but does have to consider other peoples opinions/ supportive of staff} usually found in small businesses
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LAISSEZ FAIRE
-you are on your own/ no leadership} some may feel motivated others may need guidance
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THEORY 'X'
-leaders assume workers dont like work-only work for rewards/ if ok=rewarded ; if not=disciplined
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THEORY 'Y'
-workers enjoy work/like responsibility- satisfaction from doing a good job/ they want the organisation to do well/ more freedom-less formal (set task but not told how to do it)
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WHICH LEADERSHIP SHOULD BE ADOPTED?
depends on: ability of work force/ nature of the work (hard/easy) / ability of the leader/ culture of the BS/ relationship(them+us)
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MARKETS
-where buyers and sellers meet {consumer demand/business supply}
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DEMAND
-the amount of goods that people are willing to buy at a given price. (not about what people want and need)
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SUPPLY
-the amount of goods/services businesses are willing to sell at a given price level.
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MARKET ORIENTATION
-when a firm is continually identifying, reviewing and analysing consumer needs.
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PRODUCT ORIENTATION
-where businesses focus on the product itself and how to produce it.
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QUANTITIVE DATE
-where you collect mathematical data (easier to analyse over time)
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QUALITATIVE DATA
-where you collect personal information (gets people motivated/opinions/very difficult to analyse)
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SECONDARY RESEARCH/DESK RESEARCH
-information that has already been collected for you i.e- sales data
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PRIMARY RESEARCH
-first hand information that is provided for you i.e-questionnaires
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RANDOM SAMPLING
-anyone who has an equal chance of being picked (not just one area)
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CONVENIENCE SAMPLING
-people who are available at the time
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SYSTEMATIC SAMPLING
-picking every 10th person in the list
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QUOTA SAMPLING
-representative- picked randomly but not more than 80.
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STRATIFIED SAMPLING
-focus on the most likely customers
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CLUSTER SAMPLING
-where you pick people who you think will represent.
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TYPES OF FIELD RESEARCH
-questionnaires/focus groups/ customer groups/ test market;product trial/ computered sales data/ loyalty cards
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MARKET SEGMENTATION
-where a firm splits a market into submarkets which will respond to a specific marketing strategy
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MARKET AGGREGATION
-where you treat everyone the same
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DEMOGRAPHIC SEGMENTATION
-structure of the production and features } segments by age (m&s -old) / gender (cosmetics)
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GEOGRAPHICAL SEGMENTATION
-where a different part of the country has characteristics.
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PSYCHOGRAPHIC SEGMENTATION
-traits- 'young and outgoing attitudes'/ 'conservative'
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BEHAVIOURISTIC SEGMENTATION
-how the consumer behaves (frequent/infrequent)
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MARKET MAPPING/ PRODUCT POSITIONING
-this is a technique used by businesses to try and identify any potential gap in the market.
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MARKET NICHE
-where you aim at a particular and often small segment of the market
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OPPORTUNITY COST
-the next best alternative you miss out on when you make a decision.
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DIFFERENTIATION
-something that consumers would buy eg) adidas- 3 stripes
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ADDED VALUE
-this is the difference between the value of any inputs and the value of any outputs
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INTEREST RATES
-two types; 1) REWARD TO SAVERS - make deposite, they pay you/ 2) CHARGE TO BORROWERS- higher rate, you are charged when borrowing money/this is how banks earn their money
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S.P.I.C.E.D
Strong.Pound.Imports>Cheap.Exports.Dear
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EXCHANGE RATES
-measurement of value of one currency into another
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UNEMPLOYMENT
-the number of people out of work, able to work, available to work and are actively seeking work.
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INFLATION
-rise in the general level of prices overtime (positive or negative)
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DIVIDEND
-a shareholders payment
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OVERTRADING
-where a business expands too quickly without sufficient finance to fund it.
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COLLATERAL
-when you ask for a loan but you then dont pay up. a collateral can be something the bank can take away from you. eg) house
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OVERDRAFT
-when you spend more money from your account than you've actually got in it.
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VENTURE CAPITAL
-individuals with money who like to invest in ideas/businesses
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DEBENTURES
-specialist form of loan from financial institutions re payed at a fixed date.
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LEASING/HIRE PURCHASE
-payment over a time period but when it finishes the item is yours.
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STAKEHOLDERS
-anyone who has an interest in how a business works
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INTERNAL STAKEHOLDERS
-people within a business (owners)
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EXTERNAL STAKEHOLDERS
-people outside of a business (government)
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SALES VOLUME
-the amount of a product a business will be able to sell.
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VARIABLE COSTS
-two types; 1) variable cost 2) direct cost (materials/components/service providers)
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FIXED COSTS
-costs that do not change for a period of time (even when output varies)REVEN
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REVENUE
-the money received from businesses from their sales
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TOTAL REVENUE
-price x amount sold (quantity)
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BREAK EVEN
-when the total revenue is equal to the cost
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CASH FLOW
-predicts and records the flow of money into a business any time period (its revenue) and payments taking money out of the business (its costs)
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Other cards in this set

Card 2

Front

Earn money/ work less hours/ (the reason for why people do things)

Back

ENTREPRENEURIAL MOTIVES

Card 3

Front

-the leader makes all the decisions without referring to anyone else / centralisation/ others have no say } more ideas,get them to agree, ,miss out on useful insights, motivated if asked

Back

Preview of the back of card 3

Card 4

Front

-decentralised, the leader encourages other people when it comes to decision making/ more ideas}increases motivation

Back

Preview of the back of card 4

Card 5

Front

-the leader acts in a paternal mannor (father figure) / makes all decisions but does have to consider other peoples opinions/ supportive of staff} usually found in small businesses

Back

Preview of the back of card 5
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