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business 1.1 - Coggle Diagram

- - - - goods are physical products such as a PlayStation console or coca cola soft drinks
    - - services are no physical actions performed by a business to help a customer
      - snapchat is an exmaple of this; they provide a digital platform for people to send photos to one another. they dont actually provide a physical good
    - - some businesses provide both goods and services
      - for example restaurants provide goods in the from of physical food but also services in the form of waiters and a atmosphere where customers can enjoy their meal
    - - some businesses sell products to other business
      - for example DHL sells logistics support to other businesses like jaguar and land rover
  - - - for example seven trent provides water to peoples home in the united kingdom
      - customers needs are the things that people cant live without
    - - examples are television and jewellery
      - some businesses exist to serve customers wants. these are the prodcuts and services that they don't need but would like to have
  - - - the qualities that allow an entreprenuer to take advantage of business opportunities
      - someone is enterprising if they show iniiative and are willing to take risk by setting up, investing in and running a business
    - - a factor of production which combines land, capital and labour
    - - a business or organisation like snapchat
  - - - convenience focuses on making the product more convenient for the customer in any way possible
    - - branding involves coming up with a distinctive logo/ image that adds value to the customer
    - - the unique selling point is the thing about the product that is not currently being offered by similar products
    - - the product design may be superior to products currently offered on the market
    - - the durability, finish nature of the prodcuct that may be better than what is currently being offered
- - - - financial loss
        
        starting a new business often requires a lot of investment . faulure can often mean a large financial loss for the entrepreneur
      - lack of security
        
        entrepreneurs often lose the security that they had with their job in terms of a regular wage or salary
        
        this means that if the business isn't making any profit the entrepreneur may have no money to live off
      - risk of failure
        
        starting a new company is very risky as they are most likely to fail in their early days
        
        they face the risk that consumers may not want to buy their product, especially if it is a brand new product
  - - - financial reward
        
        if a business is successful then an entrepreneur is able to make a profit
        
        they also may be able to sell the business for a large sum in the furture
      - dissatisfaction with their current job
        
        many entrepreneurs have had a full time job in the past that they haven't enjoyed which has led them to pursue their own idea
      - pursue an interest
        
        some entrepreneurs simply want to set up a business doing something that they are passionate about
      - be their own boss
        
        setting up your own business means that you can work for yourself
        
        this means that you are likely to have more flexible working hours and more choice over the type of work that you do
- - - - when customer needs are changing, new business ideas are thought up in order to satisfy these new needs. for example gtech designed a cordless vaccum to satisfy customer needs
      - a lot of ideas are thought up as a way to satisfy customer needs
    - - for example the DVD became less popular with the intoduction of streaming services such as netflix and amazon prime. further more the popularity increase of blu ray affected this.
      - technological advances can mean that certain products and services become obsolete. this can lead to new ideas
    - - changes in technology can lead to new product ideas that were not before possible
      - for example, 10 years ago virtual reality would not have been possible before, but due to advances in technology now it is
  - - - these new ideas make changed to current products to improve them in a way that no one had though of before
      - new technology may make the adaptations possible
      - for example Dyson didn't come up with the idea of a vacuum cleaner, but he did adapt and change the design to improve how it worked. Dyson dual cyclone vacuum cleaner was designed to not need a replaceable bag whilst not losing suction
    - - the introduction of autonomous cars is an example of this
      - these products are thought up because their is a gap in the market
      - original ideas have not been thought of before. they are usually very different from anything else that is currently on the market- for sale
- - - - an entrepreneur is someone who takes on the risk of enterprising activity
    - - Enterprise involves identifying business opportunities, and then creating a business (or expanding an existing business) to fill a gap in a market.
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      - There is always a risk of failure, but there is often a large reward for success
  - - - when setting up a business there is always a risk of failure
      - a business faces a constantly changing environment and even if an entreprenuer is very organised and plans well for the future they never know what will happen
    - - an entrepreneur must organise or do evrything needed to run a business
      - to be successful an entrepreneur must stay on top of task, whilst also planning for the future
    - - spotting gaps in the marketr and providing solutions to complex problems requires entrepreneurs to think outside of the box and be innovative
    - - an entreprenur must motivate themselves evry day to work without someone telling them that they have to