Sectors
What is the Sector where resources are collected called?
The Primary Sector
Porters Five Forces is an example of what?
Industry Analysis
What are goods and services?
Goods are physicall things businesses sell. Services are things that businesses will do for you.
Who wins when companies have competition?
The customer (us)
Do Non-profit companies pay taxes?
No
What happens in the Secondary Sector?
A final product is made.
If the barrier to entry is high then it means the threat to new entrants is what?
Threath to new entrants is low.
Business is an organization that provides goods and services in exchange for profit.
More competition leads to what?
Innovation
Profit - wants to make money
Non-Profit - wants to bring social good/help people/ make a change
Name 2 things the Public Sector does.
Build Roads, Public School, Public Housing, Police work, Public Hospitals, Military, Public Transportation, Infastructure (sewage / water supply / electric grids )etc
There are only two companies that make airplanes. For the airline industry is Supplier Power high or low?
Very high, because anyone who wants to buy an airplane has to buy it from the two companies.
What is Barrier to Entry?
Barrier to Entry is how hard it is for a business to start in a new industry.
What could a Mango Sticky rice stand do to compete with another stand? (give 2 examples)
-Cheaper Product
-Better Product
-Better Environment
-Better Services
-Better Advertisements
ETC ETC
If something cost 40 baht to make and I sold it for 100 baht what is my revenue? What is my profit?
100 baht revenue.
60 baht profit.
What could be a reason for the primary sector in a country to have less people in it than 100 years ago?
The country is more advacned so more in the other sectors.
New technology (tractors/drills etc.) means less people are needed to collect the resources.
List all of Porters 5 Forces:
1. Threat of New Entrants
2. Supplier Power
3.Buyer Power
4.Threat of Substitution
5. Competitive Rivalry
Innovation
A new idea or way to do something.
What are the three dangers of competition?
Safety / Environment / Exploitation
What are the only two companies that make Airplanes?
Airbus and Boeing
What could be a factor as to why Nepal has a very small secondary sector?
Secondary Sector usually takes up land to build factories - not a lot of land available.
Nepal is in the mountains so there isn't a good route to trade the goods from one place to another. (No ships / few trains through the mountains)
What would be a threat to substitution for the fast food industry?
Non-fast food restaurants
Cooking at home
Personal Chefs
(Any other way to get food)
What is the formula for Profit?
Profit = Money Made (revenue) - Cost of making goods/services
What is an environmental danger that happens because of fast fashion?
- clothes are made from polyester which is hard to break down
- new clothes are bought frequently so that means old clothes are thrown away
- new clothes are constantly being shipped to places which burns a lot of fuel
What is the type of transportation called that is like a rocketship and train combined?
Hyperloop