Unit 1 Revision
Year 11 – Introduction and Session 1
Wednesday 15th March 2017 – Unit 1
Spotting a Business Opportunity
- Understanding Customer Needs
- Market Mapping
- Competitor Strengths and Weaknesses
- Adding Value
- Start-Up Options
- The Importance of Location
Questions:These could be answered on paper as a list, or you could create a mind-map which details exactly what you’ve found out – the choice is yours.
- Understanding Customer Needs:
- What is a Business?
- Why do businesses exist?
- What are customer needs?
- How do businesses meet customer needs?
- Define “Business Start-Up”.
- What is a market?
- What is a business opportunity?
- What is a business idea?
- How are business ideas identified?
- What is an entrepreneur?
- Why set up a Business?
- How are customer needs central to starting a business?
- How can a new business succeed?
- What is market research?
- State the two main methods used in market research:
- List methods to collect Primary data:
- Distinguish between Qualitative and Quantitative data:
- How are market research results used?
- How does direct customer contact help firms understand customer needs?
- Do new businesses always do market research?
- What is a business plan?
- Market Mapping:
- What are customer buying habits?
- What are customer preferences?
- How are customer buying habits and preferences analysed?
- What is analysis?
- What is a market segment?
- Why is identifying a market segment helpful?
- List ways of segmenting a market:
- What is market mapping?
- Draw a market map.
- Explain the term “gap in the market”.
- How can a business identify a gap in the market?
- Competitor Strengths and Weaknesses:
- What is a competitor?
- Explain competition.
- How can firms gain a competitive advantage?
- Explain the term unique selling point (USP):
- How can rival firms compete in a market?
- Why is competition a threat to small businesses?
- What is competitor analysis?
- Explain the term strengths:
- Explain the term weaknesses:
- How can competitor analysis help firms spot business opportunities?
- Adding Value:
- Define production:
- Give examples of resources needed to make products:
- How do firms add value?
- Give an example of adding value:
- Why is adding value important in business?
- How can a business increase added value?
- Give examples of value adding activities:
- How can a firm increase the worth of a product and get customers to pay a higher price?
- Start-Up Options:
- What is a small business?
- What is an independent?
- Is there an alternative to being an independent?
- What is a brand?
- What is a franchise?
- Give an example of a franchise:
- Who is a franchisee?
- Who is a franchisor?
- What does a franchisee gain from buying a franchise?
- How can a franchise reduce risk?
- List the drawbacks of a franchise to the franchisee:
- Why sell franchises?
- Why opt to be an independent retailer?
- The importance of Location:
- What is location?
- List the main factors affecting choice of location:
- What is the best location for a start-up business?
- Is town centre always the best location?
Remember – the more detail you find out for your answer, the better your revision notes will be!