Understanding business

Question 1

What is the sectors of Industry?

Answer 1

Primary
Secondary
Tertiary

Question 2

What does CELL stand for?

Answer 2

Capital
Enterprise
Land
Labour

Question 3

What are the Sectors of the economy?

Answer 3

Private - Sole Traders, Partnerships and private limited companies
Public - National Government and Local government organisations
Third - Non - Profit making organisations and Social Enterprises

Question 4

How do you make good customer satisfaction?

Answer 4

providing the best quality product
make sure employees are trained
having a customer care strategy
having a customer complaint procedure
having an after-sales service

Question 5

What are Business Objectives?

Answer 5

Survival - To survive in the market and make sure you don’t get shut down.
Profit - This means that the company are maximizing their profits and making good money
Customer Satisfaction - Make customers happy and make them return and tell friends and family

Question 6

What does PESTEC stand for? (page 35 for detailed answers)

Answer 6

Political - if laws change then the businesses may have to use their money to get up to date with the law
Economic - Levels of employment and recessions
Social - How things change in social lives, these may change by friends, social media or just role models such as Celebrities
Technological - Keeping up to date with the latest technology.
Environmental - When it is hot some businesses would do better for example ice cream shops and in the cold weather some shops may do better for example cafes and soup shops
Competitive - This means when someone is selling the same products or services and sometimes can cause trouble. There are some advantages to this though and they are:
More choice of where to buy the product
Goods may be cheaper
More special offers to beat the opposition
The service offered may be better standard.

Question 7

What are the internal Factors?

Answer 7

Financial - this means that the business may not have enough money to buy certain things. For example a machine cannot be bought, Staff cannot be paid or more staff employed, advertising campaign cannot be carried out, Loans have to be obtained by a bank and the raw materials cannot be bought so you cannot make your product.
Human resource - Cleaners are employed to clean offices and shops.
Administrative assistants - may be employed to type letters and send out business documents
Doctors - are employed to make people feel better by giving them medicine and treating medical problems.

Question 8

Who are Stakeholders?

Answer 8

Owners - Interest:
Want the business to make profit
Wants a good return on the money they have invested
Influence:
Can invest more or less capital into the business
Make decisions
Shareholders - Interest:
Wants the business to make profit
Wants a good return on the money they have invested into the business.
Influence:
Can invest more or less capital into the business.
Can make decisions at Annual General Meetings
Employees - Interests:
want to receive a good rate of pay
want to be treated fairly
want good working conditions
want to continue professional training
want to receive as much benefits as possible
Influences:
Can take Industrial action such as a strike
Can make products of a bad quality
Customers - Interests:
Want a good quality product
Want to pay a reasonable price for the product being bought
Want to receive good customer service
Influences:
Can shop elsewhere
can provide positive or negative reviews online or to friends and family etc.

Question 9

What different types of Markets are there?

Answer 9

On a website - people sell and buy goods on the internet
In a shop - Products on shelves for customers to buy
Over the telephone - seller tries to persuade someone to buy something over the phone

Question 10

Why is Marketing important?

Answer 10

Can attract new customers by letting them know about the range of products the business has.
It can allow the business to enter new markets.
It can help the business grow by entering new markets.
Can increase the profit the business is making.

Question 11

What are the market segments?

Answer 11

Gender - What sex the person is, for example male or female.
Age - a product or service aimed at a certain age group.
Occupation -

Question 12

What are the market segments?

Answer 12

Gender - What sex the person is, for example male or female.
Age - a product or service aimed at a certain age group.
Occupation - The product is aimed at a certain type of job.
religious beliefs - some people will only eat or drink some certain food and drink.

Question 13

What are the market segments?

Answer 13

Gender - What sex the person is, for example male or female.
Age - a product or service aimed at a certain age group.
Occupation - The product is aimed at a certain type of job.
religious beliefs - some people will only eat or drink some certain food and drink.
Income/Social Class - product that is aimed at certain groups that have different income, for example a lambourghini or a Peugeot.

Question 14

What are the methods of promotion?

Answer 14

Websites - this is a really good way to promote as websites can be made by yourself and cost next to nothing to put on the actual 3wc server.

Question 15

What are the methods of promotion?

Answer 15

Websites - this is a really good way to promote as websites can be made by yourself and cost next to nothing to put on the actual 3wc server.
Tv - this is a good way to promote as many people will see this as everyone watched tv

Question 16

What are the methods of promotion?

Answer 16

Websites - this is a really good way to promote as websites can be made by yourself and cost next to nothing to put on the actual 3wc server.
Tv - this is a good way to promote as many people will see this as everyone watched tv

Question 17

What does Field and Desk research mean?

Answer 17

Field research means that the information you are trying to find out is done by doing the research by hand, this is good because the information is up to date. you can also get information that your actually trying to get.
Desk research means that the information you are trying to get is out-of-date or you use the internet to find information in seconds. this method is good because you can information really quickly and get peoples review of the information, on the other hand there is also the fact that many of it may be out of date or it may be changed to make the facts wrong, for example Wikipedia you can change the information by making an account.

Question 18

What types of field research can you do?

Answer 18

Personal Interview - The interviewer will ask the interviewee questions face-to-face and then they will write down their responses.
Focus Group - This is a group of people that have a discussion about a certain product or service and then they have to have a discussion about it.
Postal survey - this is when a list of questions is sent through the post to a lot of people and when they get the survey they complete it and then send it back to the sender and then the sender can keep track of what everyone says.
Telephone survey - This is when people are contacted by the telephone and asked to answer questions.
Online Survey - This is when people answer a list of questions put onto a website. it might involve them click on the appropriate answer or typing the answer into a text box.

Question 19

Give an advantage and disadvantage of these methods.

Answer 19

An advantage for the personal interview is that the interviewer can see the interviewee’s body language and facial reactions.
A disadvantage is that the interview can be expensive and time consuming.
An advantage for Focus groups is that the points that are not understood can be clarified.
A disadvantage is that the information can be hard to analyse.
An advantage of Postal surveys is that it is fairly cheap to send out to large numbers of people of a wide geographical location.
A disadvantage of this is that can take a while to get the survey back.
An advantage of telephone surveys is that information can be obtained instantly.
A disadvantage of this is If you call at the wrong time people will not answer or will be angry or annoyed.
An advantage of online survey is that don’t need to spend money on printing surveys.
A disadvantage to this though is that some people might not have an active internet connection.

Question 20

What is Operations?

Answer 20

Inputs = the factors of production
Process = The actual making of the product
Outputs = The finished product is ready to be sold

Question 21

What factors should be taken into consideration when choosing a supplier?

Answer 21

Cost of raw materials = The price charged by the supplier, this is important because low costs will improve the cash flow of the business.
Quality of raw materials = How good the raw materials are, this is important because the higher the quality the higher the final product.
Lead time = How long the raw materials will be to get to the business, this is important because some materials may be needed to be used quickly.

Question 22

What are the advantages for Job production?

Answer 22

The customer can get exactly what they want.
They will pay higher prices as the product will be of a good quality and it is to their satisfaction.
Designs can be changed to suit the customers needs.

Question 23

What are the disadvantages of Job production

Answer 23

Specialist tools and equipment may be needed, these can be expensive.
Can take a long time to make a customized product as they might not have the right raw materials.

Question 24

What are the advantages of Batch Production?

Answer 24

Batches can be changed to suit the customers specifications, which gives more customer satisfaction.
Raw materials can be bought in bulk, which is cheaper than normal.
No need for highly skilled workers, so costs are kept down.

Question 25

What are the disadvantages of Batch Production?

Answer 25

One mistake found in one of the items may mean that the whole batch is wrong
The cost of the batch may be higher if it is a smaller batch.