Market research
Define a market
a place where products and services are bought and sold
Name the 4 P's
Product
Place
Price
Promotion
1 function of a business plan
list goals
outline actions needed to meet these goals
How they will be achieved
identify problems
aid financial assistance
Give at least one benefit of Business expansion
The opportunity for owners to receive greater profit
Improved importance and status for the owners and managers who control the bigger business
Lower average cost through economies of scale
Often means the business will control a larger share of the market. This gives the business greater influence with suppliers and distributors.
Consumers are often attracted to the ‘big name’ in an industry
A leader will generally understand the overall purpose and set the direction of the business
A manager is a staff member in charge of other staff and performs roles such as organising, planning, delegating and communicating.
Define target market
a group of people who are most likely to want to buy a particular product or service
1 consideration to be made about price
Prices charged by competitors
total cost of making and selling the product
income levl of people who are going to buy the product
if the brand is well known or new to the market
What does SWOT stand for?
Strength, weaknesses, opportunities, threat
What is a merger?
When the owners of two businesses agree to join their firms together to make one.
What is authoritarian or autocratic leadership in the context of business?
Managers make decisions without any consultation with staff “The boss is always right”
What are the two types of Internal Control
Give an example of an opportunity [swot]
economy, increased tourism, new markets, competitors leaving the market
What is a takeover mean in a business?
A forced or sometimes hostile deal where the dominant firm buys a share of a new business. Can create bad feelings and be unpopular.
What is democratic leadership in the context of business?
Managers allow staff some influence over decisions and will in many cases delegate some authority to staff to make decisions.
What is internal control?
A process designed to help a business accomplish specific goals or objectives. It is a means of monitoring and measuring the businesses resources.
It plays an important role in preventing and detecting fraud and protecting the businesses resources (e.g. machinery / property / trademarks). Safeguarding assets, ensuring compliance, provide accuracy for reports
Name 3 promotion strategies
Advertising, sponsorship, personal selling, sales promotion, public relations, product placement
What is key personnel
details of the main people involved in setting up the business, including their names and salary
What is Conglomerate Integration in a business?
When one firm merges with or takes over another in a completely different industry
What are the two major human resource issues?
Ineffective Leadership
Occurs when managers are not adequately fulfilling one or more of their H/R responsibilities. Without clear and focused direction, workers can't maintain productivity and morale.
Loss of key personal
This occurs when a key individual leaves the organization and there is no viable replacement for that individual. The skills, knowledge or leadership crucial to the effective running of the organization may leave with the individual and not be easily replaced.
Define market segmentation and give an example
the process of dividing the total consumer market into smaller groups, called segments, based on something they have in common.
Examples: Age, Income level, Occupation, Hobbies, Interests, Geography
What is Liquidation
Liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its bills as and when they are due. Total debt is usually more than assests
The company’s operations are brought to an end, and its assets are divided up among creditors and shareholders, according to the priority of their claims.
Liquidation is the process of bringing a business to an end and distributing its assets to claimants. Once the process is complete , the business is dissolved.
Name 3 of the headings in the business plan
The business
Key personnel
Marketing mix
the market
Fixed assets
Financial requirements
Explain what is Vertical Merger (Vertical Integration)
When one business merges with or takes over another in the same industry but at a different stage of production. E.g. a manufacturer merges with a retail outlet
Give atleast two causes of H/R Issues
Organizational Culture
Insufficient training or development
Poor Leadership
Policies and procedures
Succession planning