Business Lifecycle
Name the 5 stages of the business lifecycle.
Seed, Start-up, Growth, Maturity, Post-maturity
What is a stakeholder?
A stakeholder is any individual or group that has an interest or is affected by the operations of a business.
What is a sole trader?
A sole trader is an individual who owns and operates their business alone, assuming full responsibility for profits and losses.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
What are the 4Ps of marketing?
Product, Price, Place, Promotion
What happens in the growth stage of a business?
The business expands its market share, develops products, and increases profitability.
Give 2 examples of internal stakeholders.
Employees, Owners/Management
How is a private company different from a public one?
A private company is owned by a small group of people and its shares are not publicly traded, while a public company’s shares are available on the stock market.
What are the four factors in a PEST analysis?
Political, Economic, Socio-Cultural, Technological
What is market segmentation?
he process of dividing a market into smaller groups based on characteristics like age, income, and behavior.
What are the three possible paths in post-maturity?
Renewal, Steady state, Decline
What is the difference between internal and external stakeholders?
nternal stakeholders are those within the organization (e.g., employees, management), while external stakeholders are outside the organisation (e.g., customers, suppliers).
What does SMART stand for in goal setting?
Specific, Measurable, Achievable, Relevant, Time-bound
Give an example of an opportunity in a SWOT analysis.
A growing market trend or new technology that could be leveraged.
How does branding help a business compete?
Branding creates recognition, builds customer loyalty, and differentiates a business from competitors.
Describe one challenge faced at the start-up stage.
Limited resources and lack of brand recognition.
Name 2 macro-environmental factors that impact businesses.
Political factors, Economic factors
Name and explain 2 common business goals.
Profitability (focus on making profits), Sustainability (focus on long-term environmental and social responsibility).
Why is a PEST analysis useful for businesses?
It helps businesses understand the macro-environmental factors that could affect their operations.
What is a competitive advantage?
A unique factor that allows a business to outperform its competitors, such as lower prices or superior product quality.
How do businesses transition from growth to maturity?
Businesses consolidate their market position, optimise operations, and focus on maintaining steady revenue.
How can competitors influence a business's success?
Competitors can affect market share, pricing strategies, and innovation in the industry.
Why might a business choose a partnership over a sole proprietorship?
A partnership allows for shared responsibility, additional skills, and access to more capital.
How can a business use SWOT and PEST together for decision-making?
A business can use SWOT to assess its internal strengths and weaknesses, while using PEST to evaluate external factors that could create opportunities or threats.
Explain one way businesses can use digital marketing to increase sales.
Businesses can use targeted online ads, social media campaigns, or search engine optimization (SEO) to attract more customers.