AOS3 Flashcards
(32 cards)
what is a entrepreneur?
A entrepreneur is a person who starts a business or takes over a business and is willing to take risks in order to make a money.
List 6 skills for an entrepreneur and justify?
Communication skills-Listening to those around you, presentation of ideas to internal/external stakeholders, communication with suppliers and customers.
Problem solving skills- Ability to problem solve to develop creative and innovative solutions
Team working skills-Ability to be able to work with a team to succeed with the idea.
resilience-the ability to be resilient when things get tough in the bussines
Planning and organizational skills-Ability to plan and organize with resources available at start-up and to continue to plan and organise as the business develops
Learning skills- Ability to continue to learn and to develop as the business starts and expands. Learning IT, staff management, new terms etc.
list four characteristics or attributes an entrepreneur posseses
adaptability-entrepreneurs must be ready for the challenges that occur in their business and they must be able to overcome these challenges
risk taker-they are prepared to give things ago despite fears of them failing
growth mindset-when your business is struggling you need to have a growth mindset to keep persisting
creativity-sometimes you may need to be creative to overcome challenges or to help your products or service grow -to overtake competitors
Define business opportunity?
A business opportunity is a set of circumstances that presents itself as a avenue for success.
what are the 6 business opportunities?
Sources of business opportunity may include:
innovation and entrepreneurship
recognising and taking advantage of market opportunities,
changing customer needs,
research and development,
technological development
global markets
distinguish between an entrepreneur and innovation:
An entrepreneur is someone who starts a business and is willing to take risks in order to make money. On the other hand innovation is refers to the process of creating a new or significantly improved product or service
define innovation
Innovation may generally refers to the process of creating a new or significantly improved product, service or process e.g. mobile phone
recognizing and taking advantage of market opportunities
Potential business owners may be able to identify market opportunities due to:
Inefficiency in the market
Identifying a gap in the market-A gap in the market is a group of customers whose needs are not currently being met.
changing in customer needs
Changing customer needs:
The needs of customers in the market for any product can change due to:
changing incomes
changing tastes and fashions
changing prices of complementary and substitute goods and services
changing population
changing expectations about the market, including future prices
changes in the number of potential customers
research and development
Research and development:
Research and development(R&D) is a set of activities undertaken to improve existing products, create new products and improve production processes.
R&D can provide a potential business owner with many opportunities. For example, it can allow a person to develop new products in response to the actions of any competitors, or to improve existing products so that they become more superior to those of competitors.
technological development
The development of new products and processes creates opportunities for people with business ideas.
global markets
Global markets:
A growing number of businesses sell goods and services in domestic as well as international market.
Some of the advantages afforded by global markets include:
the opportunity to grow and further expand a business
reduced dependence on local markets
extended life cycle of new and existing products through
reduced effects of fluctuations in markets caused by changes in season or demand by moving into markets with different patterns
COVID-19 outbreak in Australia in 2020 set new challenges for businesses. Outline two business opportunities that were created from this.
research and development/innovation-covid vaccine
changing in customer needs-masks, sanitations
technological development-zoom, online bussinesses
what are natural recourses?
Natural resources are the naturally occurring inputs that are used in the production process.
This includes, land, water, timber, coal etc. Anything that is physical.
Labor factors
Labour resourcesrefer to the people that provide their skills, effort and knowledge to the business.
capital recourses?
Capital resourcesrefer to the tools and machinery that are used to produce goods or perform services.
popcorn-labor, capital and natural examples
natural-
the land used to grow the crops
the seeding
petrol to operate machinery and trucks
Labor-
-famers labor to plant corn, harvest and work machines
-delivery drivers who take the popcorn to the supermarkets
-supermarket workers who unload the truck and stack the shelves
Capital
-machinery used to harvest the corn
trucks who transport the popcorn to supermarkets
Define marketing
Marketing is a essential way in which a business engages its customers and the wider community with its products and services. Without some forms of marketing customers may not be aware that the product exists.
why is marketing so important to a bussiness?
Marketing is very important to a business as it makes the customers aware of your products or services, engages them and then helps them in the buying decision.
What are 3 elements (essential characteristics) of marketing?
The 4p’s-market mix-price, product, place and promotion
Corporate social responsibility-refers to how the performance is doing not just on profit but other factors such as environment-keeping it environmentally friendly
Target market attributes-such as market dimensions, market segmentation, consumer trends and behaviour
what is the relationship between marketing and the following business objectives:
Increasing profit – through generating more sales and revenue for the business through the marketing of goods/services.
Increasing market share – obtain a higher proportion of sales in the marketplace compared to competition.
Expanding the size of the business – offer new products in complimentary or even different categories. Example – Coca-Cola and Diet Coke, similar products but different target market.
What is marketing segmentation?
Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements
Geographic and demographic segmentation
geographic: This can include a suburbs or regions, cities, countries, rural or urban regions.
demographic: This can include age, religion, gender, family size, ethnicity, income, education.
psychographic and behavioral segmentation
psychographic: Is the process of grouping people based on lifestyles and personalities.
Behavioural segmentation: divides consumers according to behaviour patterns as they interact with a company, product or service.
It studies the behavioural traits of consumers — their knowledge of, attitude towards, use of, likes/dislikes of, or response to a product, service, promotion, or brand.
