1. PED
1.1. % change in quantity demanded / % change in price
1.1.1. Price Elasticity of demand
1.1.2. Interpretaion
1.1.2.1. The price elasticity of demand helps us to calculate how responsive the change in quantity demanded will be to change in price
2. YED
2.1. % change in quantity demanded / % change in income
2.1.1. Income Elasticity of demand
2.1.2. Interpretation
2.1.2.1. The income elasticity of demand reveals how responsive the change in quantitiy demanded is to change in income.
2.1.3. Implications for a business
2.1.3.1. Allows them to plan production and products and understand how market demand will change during economic fluctuations
3. Product or Service Design
3.1. Marketing Mix
3.2. 4p's of marketing
3.2.1. Product
3.2.1.1. Refers to the good or service offered to the consumer
3.2.2. Price
3.2.2.1. This is the amount the consumer pays for the product
3.2.3. Place
3.2.3.1. Refers to where the product is sold and how its distributed to the consumer
3.2.4. Promotion
3.2.4.1. Refers to the marketing efforts to communicate with consumers about this product and its benefits
3.3. These four elements are the fundemental building blocks of a marketing strategy helping businesses effectively reach their target audience and achieve their objectives
4. Branding and Promotion
4.1. Types of Branding
4.1.1. Product Branding
4.1.2. Manufacturer / Corporate Branding
4.1.3. Own Brand Product
4.2. Benefits of Branding
4.2.1. Added Value
4.2.2. Recognition & Identity
4.2.3. Premium Prices
4.2.4. Differentiation
4.3. Types of Promotion
4.3.1. Digital Communication
4.3.2. Sales Promotions
4.3.3. Direct Marketing
4.3.4. Advertising
4.3.5. Public Relations
4.3.6. Sponsorship
4.3.7. Personal Selling
4.4. Branding focuses on establishing a distinct identity and image for the business or product, while promotion invloves communicating this identity and value proposition to the target audience
5. Pricing Strategy
5.1. Types of pricing strategies
5.1.1. Competitive Pricing
5.1.1.1. This method is likely to be used by businesses in a fiercly competitive market
5.1.1.2. This meaning a prce war is likely to be avoided and also a market leader sets the price and so othe frims follow them
5.1.2. Predetory Pricing
5.1.2.1. The method aims to eliminate competion from the market.
5.1.2.2. Some forms of this strategy are ilegal in the Uk but are allowed if low-cost prepared to endure low-profit margins
5.1.3. Price Skimming
5.1.3.1. Lauching a product with a set higher price for a limited time. The aim to generate revenue which is common for tech products
5.1.3.2. Advantage is that high prices are charged in a market where it maximises revenue
5.1.4. Price Penetration
5.1.4.1. Launching a product set at a lower price for a limited time. The aim is to get a foothold in the market to be attactive in the market
5.1.4.2. Advantage is that it is targeted at middle to low-class families
5.1.5. Physcological Pricing
5.1.5.1. This shows that firms set their prices slightly below the round figure and so consumers are tricked to think its cheaper
5.1.5.2. E.g - £9.99
5.1.6. Cost Plus Pricing
5.1.6.1. Invloves a mark-up to the unit cost which is common for reatilers having to set prices to generate profits.
5.1.6.2. Difficult to identify and ignores market conditions
6. Approches to Staffing
6.1. Staff as an asset
6.1.1. When the workers are being acknowledged, their skills are being seen and they have key expertise to help the business
6.2. Staff as a cost
6.2.1. Represent a significant expenditure for many businesses, encompasing saleries, benefits and other related expenses
6.3. Flexible workforce
6.3.1. Multi-skilling
6.3.2. Part-time
6.3.3. Temporary
6.3.4. Flexible Hours
6.3.5. Home Working
6.3.6. Outsourcing
6.4. Dismisal & Redundancy
6.4.1. Dismissal refers to an employer terminating an employees contract also known as being 'sacked' or 'fired'
6.4.2. Redundancy refers to a situation happening where the employees position in the business is no longer availible or they are no longer needed, often due to changes in the businesses 'tech' or 'financial situation'
7. Marketing Strategies
7.1. Boston Matrix
7.1.1. Star
7.1.1.1. High & High
7.1.2. ?
7.1.2.1. High & Low
7.1.3. Cash Cow
7.1.3.1. High & Low
7.1.4. Dog
7.1.4.1. Low & Low
7.2. Market growth Rate
7.2.1. Cash Generation
7.3. Relative Market Share
7.3.1. Cash Usage
7.4. Product Portfolio
7.4.1. Is a collection of all the products a business sells, encompassing a range of items, services and brands
7.4.1.1. It represents the overall offering of a company and can vary in size and scope
7.5. Customer loyalty
7.5.1. A customers repeated purchasing and reccomendation of a business, driven by positive experiences and a strong brand relationship
7.5.2. This is developed by providing exceptional service, building meaningful relationships, offering personalized experiences and creating loyalty programs
8. Organisational Design
8.1. Hierarchy
8.1.1. Is a term used to describe the organizational structure of a company
8.2. Chain of Command
8.2.1. Is that ladder of authority where senior managers in a company give directions and control junior employees
8.3. Span of Control
8.3.1. Refers to the number of staff members that report to a particular manager
9. Business Objective
9.1. Objectives are statements of specific outcomes that are to be achieved. Objectives are set at various levels in a business - from the top (corporate) and through the layers underneath (functional and unit). Objectives are often set in financial terms
9.2. Survival. This is the most basic business objective. Every business must make enough of a profit close ProfitWhen income is greater than costs. to keep operating or else it will fold
9.3. Profit Maximization: Objective: To maximize profits, i.e., to earn the highest possible level of net income. Reasons: Provides a financial return to the owners/shareholders
10. Forms of a business 2.0
10.1. Limited Liability
10.1.1. When your personal assets are seperate to the business assets so if you loose the business you dont loose your personal belongings
10.2. Unlimited Liability
10.2.1. When your personal assets are at risk as well as your businesses assets in the case of loosing the business
11. The Market
11.1. Mass Markets - a market with a large group of consumers with similar needs and wants
11.2. Niche Markets - a market with a small group of cosumers, specilized needs and wants
11.3. Dynamic Markets - a market that is fast paced and needs and wants of consumers change rapidly
11.4. Innovation - is the development of a new idea which leads to the production of a new product or service which can be sold
12. Market Research
12.1. Primary Research - invloves collecting new data, first hand data directly from sources like customers or prospective customers
12.1.1. Qualititative Data - the collection of data about attributes, beliefs and intentions
12.2. Secondary Research - collecting data that already exsits, rather than collecting new data
12.2.1. Quantitiative Data - The collection of data that can be quantified
12.3. Sampling Methods -
12.3.1. Surveys
12.3.2. Observation
12.3.3. Interviews
12.3.4. Test Marketing
12.3.5. Focus Groups
12.4. Market Segmentation
12.4.1. Market Segmentation is the process in which a single market is divided into submarkets or segments
13. Market Positioning - refers to the process a business goes through when launching a new product or service
13.1. Market Mapping - is a tool for identifying the position of a product within a market
13.2. Competitive advantage - refers to the features of a business and its products that are percieved as superior to its rivals by customers
13.2.1. Sources of competitive advantage & Methods of adding value
13.2.1.1. Marketing & Branding
13.2.1.2. Product differentiation
13.2.1.3. Design
13.2.1.4. Convenience
13.2.1.5. Customer Service
13.2.1.6. Customisation
13.2.1.7. Packaging
13.2.1.8. Functions & Features
13.3. Product Differnetiation - is an attempt by a business to distinquish its product or service from those of competitors
14. Demand - refers to the number of goods and services customers are willing and able to buy at a given price
14.1. Draw a Demand Curve
14.1.1. Factors leading to change in demand
14.1.1.1. Non Price factors
14.1.1.1.1. Price of goods; compliments & subsitutes
14.1.1.1.2. Changes in fashion & tastes
14.1.1.1.3. Seasonality
14.1.1.1.4. External shocks
14.1.1.1.5. Advertising & branding
14.1.1.1.6. Changes to income
14.1.1.1.7. Changing demographics
14.1.1.2. The non-price factors affecting demand result in a shift of the entire demand curve
15. Supply - is the number of goods and services businesses are willing to sell at a given price in a specific time period
15.1. There is a direct relationship between supply and price
15.2. Draw a Supply Curve
15.2.1. Factors leading to change in supply
15.2.1.1. Non-price factors
15.2.1.1.1. Changes in cost of production
15.2.1.1.2. New technology
15.2.1.1.3. External shocks
15.2.1.1.4. Indirect taxes
15.2.1.1.5. Government subsides
15.2.1.2. The non-price factors include changes in the costs of production, external shocks and indirect taxes.
16. Entrepenuers & Leaders
16.1. An entrepenuer is a person who organises, operates and assumes the risk with starting a new business venture
16.1.1. They innovate, invent, take risks, organise, they are resourceful, and make decions
16.2. Barriers to entreprenuership
16.2.1. Lack of finance
16.2.2. Legal barriers
16.2.3. Lack of ideas
16.2.4. Adversion to risk
16.2.4.1. What is a Risk? - the upside and downsides of a descion
16.2.4.2. What is Uncertainty? - businesses cannot predict future events or external shocks
16.2.5. Fear of failure
16.3. A start up is a new business enterprise, formed by one or more
16.3.1. The Process
16.3.1.1. Come up with an idea
16.3.1.2. Do research
16.3.1.3. Plan
16.3.1.4. Raise finance
16.3.1.5. Decide location
16.3.1.6. Organise resources
16.3.1.7. Launch
16.4. Intreprenuership is when employees use their entreprenuerial skills to come up with ideas that finacially benefit their employer
17. Distibution - the delivery of goods from the producer to the consumer
17.1. Distribution Channel - the route taken by a product from the producer to the consumer
17.1.1. E-commerce
17.1.1.1. the use of electronic systems to sell goods and services
17.1.2. Wholesaler
17.1.2.1. a business that buys goods from manufacturers and sells them in smaller quantities to retailers
17.1.3. Retailer
17.1.3.1. a business that buys goods from the manufacturers and wholesalers and sells them in small quantities to consumers
17.1.4. Broker
17.1.4.1. an intermediary that connects buyers and sellers
17.1.5. Agent
17.1.5.1. such as travel agents
17.2. Direct and indirect selling
17.2.1. Direct selling involves a company selling directly to the consumer
17.2.2. Indirect selling involves intermediaries like retailers selling their goods and services instead
18. Recruitment, Selection & Training
18.1. Internal Recruitment
18.1.1. when the business looks to find employees from within the business
18.2. External Recruitment
18.2.1. when the business looks to recruit employees from outside the business
19. Leadership
19.1. Autocratic Leadership
19.1.1. Autocratic leadership is characterised by one person making all decision with little or no input from others. It can lead to high output in the short term, but may demotivate team members over time
19.2. Paternalisitic Leadership
19.2.1. Paternalistic leadership is a managerial approach that involves a dominant authority figure who acts as a patriarch or matriarch and treats employees and partners as though they were members of a large, extended family
19.3. Democratic Leadership
19.3.1. Democratic leadership refers to an approach by leaders or managers to discuss and consult with employees, delegate decision making authority and empower employees through their involvement
19.4. Laissez-Faire Leadership
19.4.1. Laissez-faire style of leadership involves: managers letting employees get on with their jobs with as little interference as possible. employees are allowed to make decisions and solve problems on their own with little guidance from management. management will only step in if they are needed
20. Forms of a business
20.1. Partnership
20.1.1. Advantages
20.1.1.1. More equity available to finance the business compared to a sole trader
20.1.1.2. Different partners can bring different skills
20.1.1.3. Workload is shared
20.1.2. Disadvantages
20.1.2.1. Unlimited liability
20.1.2.2. Profit is shared between the partners
20.1.2.3. Partners may not always agree on decisions for the business
20.2. Sole Trader
20.2.1. Advantages
20.2.1.1. Easy to set up
20.2.1.2. Sole trader retains all profits for themself
20.2.1.3. Sole trader makes all the decisions
20.2.2. Disadvantages
20.2.2.1. Can be difficult to raise finance
20.2.2.2. Unlimited liability
20.2.2.3. Heavy Workload
20.3. Private Limited Company
20.3.1. Advantages
20.3.1.1. Owners can retain control
20.3.1.2. More able to raise money
20.3.1.3. Limited Liability
20.3.2. Disadvantages
20.3.2.1. Must be registered with the Registrar of Companies
20.3.2.2. High set-up costs (legal and administrative)
20.3.2.3. Harder to motivate and control workers
20.4. Public Limited Company
20.4.1. Advantages
20.4.1.1. The business has the ability to raise additional finance through share capital
20.4.1.2. The shareholders have limited liability
20.4.1.3. Increased negotiation opportunities with suppliers in terms of prices because larger businesses can achieve economies of scale
20.4.2. Disadvantages
20.4.2.1. It is expensive to set up, requiring a minimum set up cost of £50,000
20.4.2.2. There is a greater risk of a hostile takeover by a rival company as the company cannot control who buys its shares
20.4.2.3. shareholders will expect to receive a percentage of the profits as dividends
20.4.2.4. shareholders may clash when making decisions about the business
20.5. Franchise
20.5.1. Advantages
20.5.1.1. The firm does not incur the costs involved with opening new stores. The business also does not have to be concerned about some of the risks of becoming a larger corporation, for example, diseconomies of scale (which may be caused by the growth from opening and operating new stores themselves)
20.5.2. Disadvantages
20.5.2.1. One of the most significant drawbacks of pursuing franchise opportunities is the ongoing capital investment, ongoing fees, and ongoing costs. Some franchisors will set a high initial cost, which is dependent on sales, location, and volumes