business studies revision powerpoint

BUSINESS STUDIESREVISION

POWERPOINTCreated By;Joe McNeillie

HERE ARE SOME REASONS FOR STARTING A BUSINESS:

Lost previous job Redundancy money Want to be your own boss Skills to be put to better use Experience to be put to better use Good idea Think you can make a better earning Desire to make a profit Lost previous job

REASONS WHY A BUSINESS MAY FAIL;

Expected sales low Lower income earned Miscalculated costs Failed to keep costs under control Insufficient cash Lack of skills and experience Charging wrong price Product not meeting customer

needs Lack of staff members Too risky

Lack of money for growthBadly runMore competitionProducts / services better or cheaper elsewhereOld technologyThe business does not move on and reinvent itself

ENTERPRISE AND ENTREPRENEURS Enterprise is; The formation of a new business or

development of a new product or service to be introduced to the market.

Entrepreneurs are; A person having generated a new business idea(s) develops it by setting up a business. Often viewed as someone who is willing to take risk(s) in setting up a new business.

PETER JONES RULES / QUALITIES OF AN ENTREPRENEUR:

Vision, motivation, action, timing, results orientated, confidence, influence, care, committed, intuition, perseverance/persistence.

KYLE MACDONALD Kyle Macdonald set out on a quest to trade 1 red

paperclip for a house; he set up a website to get publicity and made 16 trades over one year to get a house. He swapped a paperclip for a pen, for a doorknob, for a camping stove. A town in America eventually bought a house and traded it with Kyle to get publicity. The other things that Kyle swapped included a second hand van, a recording contact, rent for one year and a paid part in a film which is what Kyle swapped for a house.

CHARACTERISTICS OF AN ENTREPRENEUR;

Opportunity spotter Risk-taker

Decision maker Creative thinker Self-motivator

Strong communicator

WHY DO BUSINESSES EXIST? (To produce goods - To make profit business To distribute products To provide a service)

(To help others - Not for profit / social enterprise business

To meet the needs of society)

SOURCES OF BUSINESS IDEAS Personal Experience Business experience

Market research Eureka moment Brain Storming

EXAM ALERT Question;

Explain two ways an entrepreneur can generate Business ideas? (4 marks)

Answer;An entrepreneur can generate business ideas from business experience as you could have worked in a field of business and seen a flaw, gap in the market or niche. Also you could generate ideas from Eureka moments as you could suddenly find a new idea / solution to a problem.

MARKET SEGMENTATION Geographic location is linked to income and areas of

prosperity, e.g. you probably wouldn't put a Bentley garage in Kirkham but you might do in London.

Physiographic focuses on the impact of factors such as your personality, lifestyle, values, social class and attitudes.

Behavioural when you buy, your usage rate and brand loyalty – do you always stick with one brand?

What makes people go back to the same hairdressers or car dealerships?

They go back as they are influenced by brand/company loyalty. Also they may offer a good service at the right price that is reliable and is easy for the customer to use the service.

COMPETITION GOOD AND BAD POINTS: Gives the company something to compare products

against Learn from mistakes made by your competition Motivation to be better and beat your competition Encourages innovation Improved quality of products Lower prices of products

USP – UNIQUE SELLING POINT USP – Unique selling point adds value to a product and

sets it apart from its

A.

B.

C.

D.

E.

Why do businesses use market research?

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To advertise

To sell goods and services

To identify customer needs