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A Level Business Studies > theme 1 Chat BEST ONE > Flashcards

theme 1 Chat BEST ONE Flashcards

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1
Q

What is a market?

A

A place where buyers and sellers interact to exchange goods and services.

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2
Q

Define mass market.

A

A large market where products are aimed at a wide range of consumers.

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3
Q

Define niche market.

A

A smaller segment of a larger market with specific needs and preferences.

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4
Q

What is market segmentation?

A

The process of dividing a market into distinct groups of consumers with similar needs or characteristics.

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5
Q

What is market mapping?

A

A visual representation of how products are positioned in the market based on two variables, such as price and quality.

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6
Q

Define product orientation.

A

A business approach that focuses on the product’s quality and features rather than customer needs.

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7
Q

Define market orientation.

A

A business approach that prioritizes identifying and meeting the needs and wants of customers.

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8
Q

What is primary market research?

A

The collection of first-hand data directly from potential customers.

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9
Q

What is secondary market research?

A

The use of existing data collected by others to inform business decisions.

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10
Q

List two advantages of primary research.

A

Specific to the business’s needs.
Up-to-date and relevant.

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11
Q

List two disadvantages of primary research.

A

Time-consuming.
Can be expensive.

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12
Q

List two advantages of secondary research.

A

Quick to access.
Often low cost or free.

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13
Q

List two disadvantages of secondary research.

A

May be outdated.
Not tailored to the business’s specific needs.

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14
Q

What is qualitative data?

A

Non-numerical information that provides insights into consumer opinions and motivations.

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15
Q

What is quantitative data?

A

Numerical information that can be measured and analyzed statistically.

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16
Q

Define demand.

A

The quantity of a product or service that consumers are willing and able to purchase at a given price.

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17
Q

Define supply.

A

The quantity of a product or service that producers are willing and able to offer for sale at a given price.

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18
Q

What is the equilibrium price?

A

The price at which the quantity demanded equals the quantity supplied.

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19
Q

State the formula for price elasticity of demand (PED).

A

PED = (% Change in Quantity Demanded) / (% Change in Price)

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20
Q

What does it mean if PED > 1?

A

Demand is price elastic; consumers are sensitive to price changes.

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21
Q

What does it mean if PED < 1?

A

Demand is price inelastic; consumers are less sensitive to price changes.

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22
Q

State the formula for income elasticity of demand (YED).

A

YED = (% Change in Quantity Demanded) / (% Change in Income)

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23
Q

What is a normal good?

A

A good for which demand increases as consumer income rises.

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24
Q

What is an inferior good?

A

A good for which demand decreases as consumer income rises.

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25
Define market share.
The percentage of total sales in a market held by a particular business or product.
26
State the formula for market share.
Market Share (%) = (Sales of the Business / Total Market Sales) × 100
27
List the 4 Ps of the marketing mix.
Product, Price, Place, Promotion.
28
What is product differentiation?
Creating a product with unique features that distinguish it from competitors.
29
Define added value.
The difference between the selling price of a product and the cost of inputs used to produce it.
30
State the formula for added value.
Added Value = Selling Price – Cost of Inputs
31
What is cost-plus pricing?
Setting a price by adding a fixed percentage (mark-up) to the cost of producing the product.
32
State the formula for cost-plus pricing.
Selling Price = Unit Cost + (Unit Cost × Mark-up Percentage)
33
What is penetration pricing?
Setting a low initial price to attract customers and gain market share quickly.
34
What is price skimming?
Setting a high initial price for a new product to maximize profits from early adopters before lowering the price over time.
35
Define competitive pricing.
Setting a price based on what competitors are charging.
36
What is psychological pricing?
Pricing designed to have a psychological impact, such as setting a price at £9.99 instead of £10.00.
37
Define distribution channel.
The path a product takes from the producer to the final consumer.
38
What is direct distribution?
Selling products directly from the producer to the consumer without intermediaries.
39
What is indirect distribution?
Selling products through intermediaries such as wholesalers or retailers.
40
List two advantages of direct distribution.
Greater control over the sales process. Higher profit margins.
41
List two disadvantages of direct distribution.
Limited market reach. Higher responsibility for logistics and customer service.
42
What is branding?
The process of creating a unique name, design, or symbol to identify a product and distinguish it from competitors.
43
List two benefits of strong branding.
Customer loyalty. Ability to charge premium prices.
44
Define organizational structure.
The way in which a business arranges its lines of authority and communications.
45
What is a tall organizational structure?
An organizational structure with many levels of hierarchy and narrow spans of control.
46
What is a flat organizational structure?
An organizational structure with few levels of hierarchy and wide spans of control.
47
Define centralization.
Decision-making authority is concentrated at the top levels of management.
48
Define decentralization.
Decision-making authority is distributed throughout various levels in the organization.
49
What is motivation?
The factors that influence the level of commitment and effort an employee puts into their work.
50
List Maslow's hierarchy of needs.
Physiological needs Safety needs Social needs Esteem needs Self-actualization
51
What is Herzberg's two-factor theory?
A theory stating that job satisfaction and dissatisfaction arise from two different sets of factors: hygiene factors and motivators.
52
Define Taylor's scientific management.
A theory that emphasizes efficiency and productivity through task specialization and monetary incentives.
53
What is Mayo's human relations theory?
A theory that emphasizes the importance of social factors and employee well-being in the workplace.
54
Define job enrichment.
Enhancing a job by adding more meaningful tasks to make the work more rewarding.
55
Define job enlargement.
Increasing the variety of tasks in a job to reduce monotony.
56
What is job rotation?
Moving employees between different tasks to promote experience and variety.
57
Define delegation.
The assignment of authority and responsibility to another person to carry out specific activities.
58
What is empowerment?
Giving employees the authority and responsibility to make decisions about their work.
59
Define entrepreneur.
An individual who starts and runs a business, taking on financial risks in the hope of profit.
60
List three characteristics of successful entrepreneurs.
Risk-taking Innovation Resilience
61
What is intrapreneurship?
The practice of entrepreneurship within an existing organization.
62
Define business objectives.
Specific, measurable goals that a business aims to achieve.
63
List four common business objectives.
Profit maximization Growth Survival Customer satisfaction
64
What is a business plan?
A formal document outlining a business's goals, strategies, and financial forecasts.
65
List three purposes of a business plan.
To secure funding To guide operations To assess progress
66
Define sole trader.
A business owned and operated by one individual.
67
Define partnership.
A business owned and operated by two or more individuals who share responsibility and profits.
68
Define private limited company (Ltd).
A company owned by shareholders with limited liability, whose shares are not publicly traded.
69
Define public limited company (PLC).
A company whose shares are traded publicly on the stock exchange, offering limited liability to its shareholders.
70
What is limited liability?
A legal status where a business owner's financial liability is limited to the amount they invested in the business.
71
What is unlimited liability?
A legal status where the business owner is personally responsible for all of the business's debts.
72
Define leadership.
The ability to influence and guide individuals or groups to achieve goals.
73
List three leadership styles.
Autocratic Democratic Laissez-faire
74
What is autocratic leadership?
A leadership style where the leader makes decisions unilaterally without input from others.
75
What is democratic leadership?
A leadership style that involves team members in the decision-making process.
76
What is laissez-faire leadership?
A leadership style where the leader provides minimal direction and allows team members to make decisions.

A Level Business Studies (7 decks)

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