AQA BUSINESS 7131/1 Paper 1 (3 VERSIONS)
Merged June 2023
how new business ideas come about - -adapting an existing idea
-creating an original
... [Show More] idea
risk - -lack of financial security
-financial loss
-business failure
reward - -profit
-Independence
-business success
VAT- value added tax - tax on value of sales of a business if they make more than certain amount
of profit
Income tax - tax on the income earned by workers and soletraders
corporation tax - A tax on limited companies profits.
national insurance contributors - a tax on the owning of workers based around benefits
role of business enterprise - -sell goods/services
-meet customer needs
-add value
good - physical items that the customer can use, eat or hold e.g. phone
service - intangible, actions performed by others for you e.g. haircut
add value - quality, branding, design, convenience and USPs
role of entrepreneurship - -organise resources
-take risks
-make business decisions
why new business ideas come about - -changes in technology
-products/services becoming obsolete
-change in consumer wants
branding - recognisable and trusting brand so people more willing to spend money
USP - a unique feature of a product so it's different from competitors and original
reduce risk - planning - business plan
researching - market research
entrepreneur qualities - hardworking
determined
organised
innovative
creative
take calculated risk
business decisions
confident
customer need - price, quality, convenience and choice
uses of social media (market research) - spot consumer trends
collect and use data
deepen understanding of market
improve product or service
save time
validity - how bias market research is
realiabilty - how truthful data is and if it repents equal sample
marketing mix - price, product, place, promotion
SWOT analysis - a planning tool used to analyze an organization's strengths, weaknesses,
opportunities, and threats
SWOT analysis based on - price
quality
location
customer service
product range
direct competition - sell the same product/service
indirect competition - sell different product or service but meet the same need
barrier of entry - Any factor making it hard for a new firm to enter the market
high barrier of entry - low competition
low barrier of entry - high competition
factors for barrier of entry - specialist equipment and training
employees require specialist skills
so need lots of training and expect higher wages
Spot business opportunity - drawing on personal experience
making something possible that previously seemed impossible
gap in the market
market mapping - identify gap in the market (some may not be viable)
identify competition [Show Less]