BTEC Level 3 National Extended Diploma Business Studies. Unit 7- Business Decision Making Solved Exam Solution 2023

Change in Economic Climate Market trends Impact of competition - ANS-A developing business needs to generate new ideas; otherwise, its products become outdated and customers may switch to competitor's products. When making decisions the business should take into account three main factors. when making decisions, what are the 3 main things that businesses need to take into account? Businesses need to generate ideas to ensure success. - ANS-Why must business generate ideas? Gaps in market competitors current market trends demands on products cost of products profit made - ANS-Start-up businesses need to show potential investors there is a market for their products. What are the 6 factors start-up business will use to convince investors? Business Cycles Unemployment Fiscal Policy Monetary policy Reset of interest Government Social Policy Rate of technological changes international events - ANS-Changes in the economic climate are external which impacts business decisions. What are the 8 factors in the Economic climate that affects a business? Both sellers and buyers - ANS-What are market trends influenced by? Developing innovative products Advertising Creating a brand image Creating new distribution Channels Joining together with other sellers - ANS-How do sellers influence the market? (5) Quality Brand image After-sales service Reviews by other customers price customer service Availability of cheaper substitutes - ANS-What is the 7 consumer choice? Pattern to their expenditure Providing feedback to sellers - ANS-How do buyers influence the market? (2) The fewer the layers the flatter the structure. This referees to ......? - ANS-Business structure To provides goods and services to customers. - ANS-Why do businesses exist? Its core aims and objective/product and service - ANS-What does a business purpose mean? Sole Trader Partnership Public Limited Private Limited Franchise (not for profit) - ANS-What are the 4 ownership types? Marketing Finance Production Research and development - ANS-What are the 4 project team? First hand research - ANS-What type of research is primary research? Second hand research - ANS-What type of research is secondary research? 1. Analysing data 2. Identifying relationships between data 3. Evaluating the data 4. Providing alternatives 5. Predicting consequences 6.Justifying Solutions - ANS-What are the 6 decisions making process? To protect people's personal details. - ANS-Why do business businesses need to store data securely? Continues...