Business Basics
Something people must have to survive, such as food, water and shelter.
What is a need?
The four elements of the marketing mix: Product, Price, Place and Promotion.
What are the 4Ps of marketing?
A business analysis tool that examines Strengths, Weaknesses, Opportunities and Threats.
What is SWOT analysis?
A business planning tool that helps businesses choose growth strategies based on existing or new products and markets.
What is the Ansoff Matrix?
The money a business has left after subtracting all its expenses from its revenue.
What is profit?
A special feature or benefit that makes a business different from its competitors and gives customers a reason to choose it.
What is a Unique Selling Point (USP)?
A creativity technique that encourages businesses to Substitute, Combine, Adapt, Modify, Put to another use, Eliminate and Reverse or Rearrange ideas.
What is SCAMPER?
In the Three Horizons Model, this horizon focuses on maintaining and improving the business's existing operations
What is Horizon 1?
A business wants to open a second store in five years rather than increase sales this week. This type of goal focuses on future growth.
What is a long-term goal?
A bank uses blue in its logo to communicate trust and reliability. This marketing technique uses people's associations with different colours.
What is colour psychology?
A business examines how new environmental laws, inflation and changing customer lifestyles could affect its operations. This is the business analysis tool being used.
What is PESTLE analysis?
A water park already attracts local families. It builds a completely new wave pool to encourage those same customers to visit again. This is the Ansoff Matrix growth strategy being used.
What is product development?
A business invests $12,000 to start operating. It earns $5,000 in annual revenue and has $2,000 in annual expenses. Assuming these amounts remain constant, this is how many years it takes to recover its initial investment.
What is 4 years?
A new café sells delicious coffee at affordable prices, but very few customers know it exists. The café decides to advertise on social media and distribute flyers. This is the element of the 4Ps it is improving.
What is promotion?
A restaurant notices customers are unhappy about long waiting times. Instead of opening another restaurant, it introduces mobile ordering to make its existing service faster and more convenient. This process of introducing a useful improvement is called this.
What is innovation?
A successful mini-golf business plans three changes: improving its current course, testing a new interactive attraction, and exploring a completely new entertainment business for a different customer market. The business uses this model to balance current operations, developing opportunities and future transformation.
What is the Three Horizons Model?