True or False
A niche market is usually larger and has more customers than mass market?
False
Sales of the Business
--------------------------- X100
Total Market Share
MARKET SHARE
Tell me as many characteristics of a successful entrepreneur!
Risk-taker.
Resilient (doesn't quit).
Innovative/Creative.
Hard-working.
Self-confident.
Effective communicator.
ETC
The point where supply and demand are equal
Equilibrium
2 Advantage of On the Job training
Job rotation
Demonstration (physical)
Coaching
Employees can join projects
Secondary research is always more accurate than primary research because it uses larger data sets.
False
Number of Staff Leaving
---------------------------------------- X100
Average Number of Staff employed
Labour Turnover
Tell me as many advantages of a Niche Market as you can!
Less competition
Can charge higher price
Stronger customer loyalty
Easier to target marketing
Specialist expertise
More etc
Focusing on the Products design and quality rather than customer needs
Product Orientation
Give one advantage of ethically sourcing materials.
Improves brand image, attrach customers and increase loyalty
Lowering price will increase total revenue when demand is elastic.
True
% Change in Quantity Demanded
-------------------------------------
% Change in Price
Tell me as many ways a business can differentiate its product
Better quality.
Unique Design/Aesthetics.
Better customer service.
Lower price.
Stronger branding/logo.
A unique feature (USP).
Ethical/Sustainable sourcing.
ETC
The "emergency" pile of inventory kept just in case a supplier is late or there’s a sudden surge in demand.
Buffer stock
what is Staff as an Asset?
Staff treated as an asset and viewed as an essential resource in business and a source of competive advantage
An entrepreneur who incorporates their business as an Ltd is no longer liable for any business debts personally.
True
New Market Size - Old Market Size
------------------------------------- X100
Old Market Size
Market Growth
Tell me as many reasons why a new business might have poor cash flow
Overtrading (growing too fast).
Allowing too much Trade Credit (customers pay late).
Holding too much stock (money is "sat on a shelf").
High start-up costs (rent/machinery)
Unexpected drop in sales/demand.
ETC..
when a business makes more products, the cost of making each product becomes cheaper.
Economies of scale
Explain one advantage and one disadvantage of a centralised structure for a business.
Advantage: Decisions are consistent and controlled by senior managers.
Disadvantage: Can slow decision-making and reduce employee motivation.
False
% Change in Quantity Demanded
-------------------------------------
% Change in Income
Income Elasticity of Demand
Tell me as many purposes of Market Research as you can
To identify a gap in the market.
To reduce risk.
To understand customer needs.
To inform business decisions (like price).
To spot trends.
To understand what competitors are doing.
ETC..
Constant and small improvement in operation
Kaizen
What are the 5 needs in Maslow Hiearchy of Needs
Self actualisation, Esteem, Social, Safety, Physiological