Business Flashcards
(29 cards)
Focus group
Small group of people asked to give views about a product being developed
Customer trails
Adv.
less expensive than full release
Saves money incase product fails
Disadvantages
Trialers may not even use the product
Why provide regular training ?
Less mistakes
Improve employee knowledge
Improve skill base
Non Financial ways of motivating employees
Praise
Award schemes
Teamwork
Employment law effects
Equal pay
Iimit on working hours
Right to a contract
Primary research
New research that the business collects itself.
> provides a business with customised research that is specific to its own circumstances
Eg. Surveys, questionnaires and focus groups
Secondary research
involves gathering existing data that has already been produced
could include information from internet research, market reports and government reports.
Qualitative data
Usually expressed as opinions, includes descriptive information
It provides a business with detailed information that cannot be expressed in a graph or chart
Quantitative data
is usually numerical data
is gathered through the use of closed questions, such as ‘yes’ or ‘no’ responses, multiple-choice options or a rating system
benefit…being simple and quick to analyse
Purpose of market research
Market research collects information that might help a business to be more successful and spot gaps in the market, identifies peoples needs
market segments
Age, gender, location, lifestyle ect
Market mapping
process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market
Business objectives»_space;» the SMART acronym
S – Specific
M – Measurable
A – Agreed
R - Realistic
T – Time-bound
Social objectives
linked to doing things in an ethical or environmentally friendly manner, or having a business whose sole purpose is to meet a social need.
Personal satisfaction
entrepreneur feeling satisfaction that they have created a successful business
Control
relates to an entrepreneur’s goal of being able to control the business and make decisions about how it is run
Why aims and objectives differ between businesses ?
Different sectors, Business size and scale
Sectors
The term ‘sector’ relates to whether a business provides goods or a service and the type of goods or service it offers
Define Organic Growth
A business grows when it sells more output over a period of time
Define external growth
the increase in a company’s sales and profits that is a result of buying other companies or of forming a business relationship with them
MERGER AND TAKEOVERS
Merger
When two or more businesses join together to operate as one business
Takeover
when an existing business expands by buying more than half the shares of another business
Horizontal integration
when two competitors join through a merger or takeover
Backward vertical integration
occurs when a business takes control of a business earlier in the supply chain
