Basics of a Business
What is market research?
Market research involves collecting and analysing information about customers and business opportunities.
List 3 Factors affecting consumer decisions.
1. Finance
2. Price
3. Marketing
4. Age
5. Gender
6. Convenience
7. Environment
8. Service
Define Business Opportunity
Something an entrepreneur can see as an avenue to success.
What does Pty Ltd stand for
Proprietary Limited
Yes
Why would you start your own business instead of purchasing an existing one?
- A person has created something unique
- An existing small business does not satisfy the needs of customers
- A person wants to have control over their own business
How does marketing affect consumer decision?
Marketing has a role in influencing consumers. It increases the exposure we have to products or services.
What is market research?
Collecting and analysing information about customers and the business opportunities available.
What is a risk associated with being a sole trader?
Define Risk Management
Risk management is the process of:
- Evaluating the risks faced
- Calculating the possible costs
- Implementing procedures to minimise such risks
List 2 pros and 2 cons of buying an existing business
Pros
1. Sales to existing customers will generate instant income
2. A good business history increases the likelihood of a businesses success
Cons
1. Some employees may resent the change to the business operations
2. The success of the business may have been to the previous owners personality, contacts or individual skills.
Define Consumer Decisions
Consumer decisions relate key characteristics of consumers which impact their decision making around using/purchasing a service or product.
What is the target market of Gucci.
High disposable income, middle age males and females.
List a pro and a con of a partnership business structure.
Cons
1. They have unlimited liability
2. You do not have full control over the business
Pros
1. It allows people of similar skills to build business together
2. Can learn from each others skills
List a risk minimisation strategy for physical business damage
List 3 Franchise Businesses
1. McDonalds
2. F45 or Fitstop
3. Gloria Jeans Coffee
What key factors impact consumers preference to purchase Thank-You water instead of Mt Franklin bottled water.
Environmental factors, Possibly Marketing.
Maintaining a competitive advantage is essential for long term business success. ( In 1-2 sentences) What do you think a business can do to keep ahead of its competitors?
- Businesses can promote their products, create new products, seek business improvements.
- They can refine products or improve product quality
Name two types of finance which are available to small businesses. Include an example of each.
Debt (Other people's money)
1. Banks
2. Finance company
3. Trade suppliers
Equity
1. Your money
2. A partner's money
List the 4 steps to managing marking
1. Product - quality, design, name and packaging
2. Price - Setting the correct price for the product
3. Promotion - Methods used to inform, persuade and remind customers about the product
4. Place (distribution) - How to get the product from the business to the customer
What is a niche Market
A very small segment of the total market
How does service impact consumer preference. Give an example.
Good customer service can positively impact business success.
E.g. I go to a restaurant and have dinner with my family. The restaurant makes a mistake with two of my dishes. I complain. They offer me a full refund or to remake my dishes to appropriate standard. I am now much more likely to go back to that restaurant.
List 2 business opportunities which resulted following the outbreak of COVID-19.
1. Cleaning Services
2. Vaccines
3/4 Online Communication and Education (ZOOM, Microsoft teams).
List 3 examples of public companies & Where can you purchase shares in these companies in Australia
Apple
BHP
Rio Tinto
ASX (Australian Stock Exchange).
List the four separate tasks or managing production
1. Purchasing - obtaining raw materials and equipment to produce goods or services
2. Stock control - to have the right amount of stock on hand
3. Scheduling - ensuring that the correct materials are delivered at the right time and to the right place
4. Quality control - Ensuring that goods and services are produced to meet set standards.