BTEC Unit 7 Business decision making Exam Graded A+

start up a business - ANSWER-show potential investors there is a market for the product Gap in the market - ANSWER-Represents opportunities for companies to expand: Business Customer base Finding a gap can be done by: Businesses strengths Finding a niche Developing/improving/copying Research trends Competitors - ANSWER-Rival against another business that offers similar product Can carry out competitor analysis - gives a competitive advantage Location Pricing competitor analysis - ANSWER-an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies Current Trends - ANSWER-Ability to respond to changes in economic,market and social trends economic trends - ANSWER-Increase in the size and power of corporations market trends - ANSWER-Shifting preferences in the market. Trends reflect changing opinions, habits, and ideas that can affect what types of products and services customers will buy. Social Trends - ANSWER-The patterns of change in society Likely demands - ANSWER-Can be discovered through market research Size of market Price Sale volume/turnover Consumer views Developing business - ANSWER-Generates new ideas if outdated may switch to competitors Changes in economic climate - ANSWER-The general state of regional,national or global economy Reflects state of jobs and market Trends - ANSWER-a general direction in which something is developing or changing Sellers influence - ANSWER-Innovative products Advertising Brand image Distribution buyers influence - ANSWER-Pattern of expenditure Providing feedback competition - ANSWER-May lead to diversification! Due to market competition the consumer has a choice of which product to purchase from which supplier consumer choice - ANSWER-The range of competing products and services from which a consumer can choose. Depends on: Price Quality Service Reviews After sale service Brand image Availability of cheaper substitutes Purpose of a business - ANSWER-The core aims and objectives of what the business wants to achieve Aims - ANSWER-An overall goal for a business objectives (goals) - ANSWER-Goals in place to get to the aims Structure of a business - ANSWER-Business functions can be grouped together and managed in different ways Hierarchy business structure - ANSWER-Different levels of authority Superior and subcordinate