key terms Flashcards
Financially viable
High enough profit margin to be a successful business
Product portfolio
The range of products offered
Saturated market
High competition, consumers can analyse and compare prices
Forced to have lower prices , less chance of success and profit
Competitive environment
And it’s effect on business decisions
Income stream (of a business)
regular income received by the business, either from customers or investment income
Eg: customers purchasing treats
Customers ordering celebration cakes
Selling cakes to a local cafe
Insolvent
Unable to pay it’s debts / owes more money that owed
- a business should be solvent
Unincorporated
A business not registered as a company, so it the eyes of the law the owners and the business are the same
Prone to (unlimited liability)
Incorporated
Register as a company and so has limited liability
National Living wage
The minimum wage
Bulk gaining product
At the end , is bigger than the raw materials used to make it
Eg: bike
Would allocate closer to market, to reduce transportation costs.
As is cheaper to deliver small stuff from suppliers to you , than to deliver big bikes from yourself to consumers
Bulk reducing product
A product that is smaller than the raw materials it uses.
Eg: paper
Then be located closer to suppliers, as is silly to transport the tree all the way to you , as opposed to small paper packets to consumer
Convenience good
A product frequently bought from consumer , doesn’t need much thought
Eg :bread
Then place yourself away from competitors
Shopping good
A product that the consumer takes time to consider before purchasing. Not brought frequently, ready to make the trip
Eg: cars
Place nearer to competitors, as the ‘are’ will attract more customers
Product differentiation
Designing a product with unique features that distinguish it from similar products sold by competitors
Brand loyalty
Willing to buy a product over competitors, encouraged through brand awareness
