theme 1 and theme 2 advs and disadvs Flashcards
(19 cards)
What are the advantages of market research?
Helps understand customer needs
Reduces risk of product failure
Identifies market trends
What are the disadvantages of market research?
Can be expensive and time-consuming
Data might be inaccurate or outdated
Competitors can copy insights
What are the advantages of business aims and objectives?
Provide clear direction
Help motivate employees
Enable performance measurement
What are the disadvantages of business aims and objectives?
Can be unrealistic if poorly set
May restrict flexibility
Different stakeholders may have conflicting objectives
What are the advantages of sole trader ownership?
Full control
Easy to set up
flexible
What are the disadvantages of sole trader ownership?
Unlimited liability
Limited finance
What are the advantages of partnership ownership?
Shared responsibility
shared skills - can work on different things
What are the disadvantages of partnership ownership?
Unlimited liability (usually)
Potential disagreements
What are the advantages of limited company (Ltd) ownership?
Limited liability
Easier to raise finance
What are the disadvantages of limited company (Ltd) ownership?
More regulations
additional admin
What are the advantages of public limited company (Plc) ownership?
Can raise large capital through shares
What are the disadvantages of public limited company (Plc) ownership?
Risk of takeover
Public disclosure
What are the advantages of considering business stakeholders?
Improves reputation
Helps manage risks and conflicts
What are the disadvantages of considering business stakeholders?
Stakeholder demands may conflict
Can slow down decision-making
Market Segmentation
Advantage: Enables targeted marketing, better meets customer needs, increases sales efficiency.
Disadvantage: Can be expensive; risks excluding potential customers outside segments.
Customer Service
Advantage: Builds brand reputation, encourages repeat purchases.
Disadvantage: High service costs; difficult to maintain consistency.
Market Size and Growth
Advantage: Helps identify potential opportunities and threats.
Disadvantage: Market size data can be inaccurate or outdated.
market share
Advantage: Shows competitive position; helps set strategic goals.
Disadvantage: Focusing too much on market share can lead to profit sacrifice.
Market Research
Advantage: Reduces risk by informing decisions with customer insights.
Disadvantage: Can be expensive and time-consuming; data may be misinterpreted.
