Business Studies Revision PowerPoint

1. Business StudiesRevision PowerPoint Created By; Joe McNeillie

2. Here are some reasons for starting a Business: •  Lost previous job •  Redundancy money •  Want to be your own boss •  Skills to be put to better use •  Experience to be put to better use •  Good idea •  Think you can make a better earning •  Desire to make a profit •  Lost previous job

3. Reasons why a business may fail; Lack of money for growth Badly run More competition Products / services better or cheaper elsewhere Old technology The business does not move on and reinvent itself •  Expected sales low •  Lower income earned •  Miscalculated costs •  Failed to keep costs under control •  Insufficient cash •  Lack of skills and experience •  Charging wrong price •  Product not meeting customer needs •  Lack of staff members •  Too risky

4. Enterprise and Entrepreneurs • Enterprise is; The formation of a new business or development of a new product or service to be introduced to the market. • Entrepreneurs are; A person having generated a new business idea(s) develops it by setting up a business. Often viewed as someone who is willing to take risk(s) in setting up a new business.

5. Peter Jones rules / qualities of an entrepreneur: • Vision, motivation, action, timing, results orientated, confidence, influence, care, committed, intuition, perseverance/persistence.

6. Kyle Macdonald • Kyle Macdonald set out on a quest to trade 1 red paperclip for a house; he set up a website to get publicity and made 16 trades over one year to get a house. He swapped a paperclip for a pen, for a doorknob, for a camping stove. A town in America eventually bought a house and traded it with Kyle to get publicity. The other things that Kyle swapped included a second hand van, a recording contact, rent for one year and a paid part in a film which is what Kyle swapped for a house.

7. Characteristics of an entrepreneur; • Opportunity spotter • Risk-taker • Decision maker • Creative thinker • Self-motivator • Strong communicator

8. Why do businesses exist? • (To produce goods - To make profit business To distribute products To provide a service) • (To help others - Not for profit / social enterprise business To meet the needs of society)

9. Sources of Business Ideas • Personal Experience • Business experience • Market research • Eureka moment • Brain Storming

10. Exam Alert • Question; Explain two ways an entrepreneur can generate Business ideas? (4 marks) • Answer; An entrepreneur can generate business ideas from business experience as you could have worked in a field of business and seen a flaw, gap in the market or niche. Also you could generate ideas from Eureka moments as you could suddenly find a new idea / solution to a problem.

11. Market segmentation • Geographic location is linked to income and areas of prosperity, e.g. you probably wouldn't put a Bentley garage in Kirkham but you might do in London. • Physiographic focuses on the impact of factors such as your personality, lifestyle, values, social class and attitudes. • Behavioural when you buy, your usage rate and brand loyalty – do you always stick with one brand? • What makes people go back to the same hairdressers or car dealerships? • They go back as they are influenced by brand/company loyalty. Also they may offer a good service at the right price that is reliable and is easy for the customer to use the service.

12. Competition GOOD and bad points: • Gives the company something to compare products against • Learn from mistakes made by your competition • Motivation to be better and beat your competition • Encourages innovation • Improved quality of products • Lower prices of products

13. USP – Unique selling point • USP – Unique selling point adds value to a product and sets it apart from its

14. Why do businesses use market research? < BLANK ? BLANK To advertise To sell goods and services To identify customer needs