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Business 1.1 - Coggle Diagram
Business 1.1
Adding value
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Convenience
Saving customers time by making a product easier to use will result in customers being willing to pay more
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Design
Features of a product that stand out can encourage customers to try something different for a higher value
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business ideas
Changes in technology
E-commerce is a business transaction that happens via the internet. As we have adapted to largely rely on our devices, businesses can easily be sought out this way. This makes business ideas almost limitless as it can reach the most amount of people
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Obselete products
When a product becomes obsolete, this arises the opportunity for a new product to be created. Younger generations are constantly seeking new and modern products. This means a new product will cause people to want to seem 'updated' even if they dislike the product
Original ideas
Original ideas make the business unique to its market. This could be for something that is highly desired or not thought of but still appears intriguing. The curiosity will peak people's interest into trying this innovative design
Adaptation
the process of changing an existing product or service so that it is suitable for different customers, which is less risky than inventing a new product
Types of adaptation include changing a brand's name, packaging, logo, format, etc to keep it up-to-date to try boost sales
Definitions
Product- anything capable of satisfying one's needs e.g books, electronics
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Dynamic market- rapidly changes in the business environment, which is important for a new business to be capable of
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The role of business
Role of entrepreneurship
An entrepreneur must look at Land, Labour, Capital (money) and Enterprise (risks they are willing to take)
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Meeting customer needs
A business will most likely survive if it provides customers with what they want (Price, Quality, Choice and Convenience)
Providing customers with their needs (clothing, food, shelter, warmth water) makes them more likely to choose that product or service over something they only desire
In order to generate sales, a business may need to: lower prices, advertise, improving a product or running a promoting activity e.g competition
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Risk and Reward
Risk
Financial loss
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They can borrow money which must be paid back or put up items like their house or car up for collatereal
Lack of security
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This means they've lost the security of a regular income and may work long, irregular hours
Business failure
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Another big risk is failure to make enough money during the start of the business usually caused by poor management, lack of materials or lack of market research
Minimising risk
There is always going to be risks, but they can be avoided by carrying out market research, setting up a business plan and ensuring there is enough money
Reward
Profit
Making money is a common incentive to start/continue a business if they believe they'll make more than they would working for someone else
Business sucess
Popularity and fame can cause a growing, known business with a good reputation giving the entrepreneur sucess
Independance
Some entrepreneurs don't want to work for someone else and enjoy the freedom of making their own choices and control over work life