Difference between Public and Private Sector?

Public Sector is when a business can sell its shares to anyone and is available on the stock exchange market.
Private sector is when shares can only be sold to friends and family, and is not available on stock exchange.

When a public sector goes into private sector is it called Privatisation.
An example of Privatisation is when the NHS when private.

Stakeholders. Difference between internal and external?

Stakeholders are anyone whom cares about the failure or success of a business. They can affect or be affected by the company.
Internal- stakeholders within a business.
E.g. Employees:Affect by quitting or not giving good enough service. Affected by being fired.
 Managers:Affect by changing the business. Affected by being fired.
 Shareholders: Affect by taking put their shares. Affected by their shares going up or down.
External- outside of the business.
E.g. Suppliers: can affect by not supplying a good enough product be affected by the company not buying there product anymore.
Government: affect-change tax rates, laws and policies. Affected by the business going into debt.
Customers: Affect by not buying the business' products. Affected by the company not selling they're required product.
Competition: Affect by selling better products. Affected by not having good enough products to compare.

What is the difference between start up and running costs? Difference between fixed and variable.

Start-Up costs- start up costs are costings a business will have to pay when they foremost set up their business. No other time. An example of a start up cost is when you buy the first shop and have to pay to start up the mortgage.

Running Costs- paid on a day to day basis to keep the business running. An example of a running cost is rent.

Fixed- fixed costs are that stay the same. They do not change or vary.

Variable- these cost can fluctuate (move up and down) and change due to deals or other sales strategies.

Calculation of Market Share?

Sales of Product
                                x 100 = %
Total market share

E.G. 25,000
                     x100 = 39.6%
        63,000

The company with the highest percentage of sales is called the Market Leader.

Advantages and Disadvantages of Primary and Secondary Market Research.

Primary research (field) is research you conduct yourself or hire somebody else to do it.
Secondary (desk) research is research that has already been founded, you use other sources.

Advantage/Disadvantage of Primary:
You get all the information by yourself and you could get all the right information, very reliable and up to date. However it is bad because it takes more time.

Advantage/Disadvantage of Secondary:
It is already conducted so yOu save a lot of time; but it could be outdated, couldn't be specific and not always reliable.

What is Market Research? Differences between Primary and Secondary .

The Marketing research Process.

1. Define the problem. Never conduct research for things that you would 'like' to know. Make sure that you really 'need' to know something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand?2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? The methods of data collection will be discussed in more detail later.3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample?4. How will we analyze any data collected? What software will we use? What degree of accuracy is required?
5. Decide upon a budget and a timeframe.
6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 
7. Go ahead and collect the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation.

Marketing research is gathered using a systematic approach. An example of one follows:

 Primary and Secondary

There are two main sources of data - primary and secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in hand. secondary research, also known as desk research, already exists since it has been collected for other purposes.

We have given a general introduction to marketing research. Marketing research is a huge topic area and has many processes, procedures, and terminologies that build upon the points above.

Why can a business fail? How can the size of a business be measured?

75% of New Business' Fail due to the fierce competition they face from all other companies within their market; there are also may other factors which make a business fail which are:

• Weak Idea
• Recession
• No customers
• No gap in the market
• Not enough supply
• Not reliable
• Location
• Lack of public awareness.

The size of a business can be measured by:

• The amount of employee's they employ
• The amount of branches they have
• Number of products/services
• Amount of profit
• Cashflow Turnover
• How many countries they sell in
• Recognition
• Client Base
• Advertisement
• Shareholders
• Brand

Difference between a Product and a Service. What is a Social Enterprise?

A product is something you can touch, otherwise known asa tangible product. People can use products to do a service. You can physically touch products.
A service is intangible, they supply something to normally help out society. For example a restaurant is a service; they supply food and drink for customers. However the thing the customer is paying for is not tangible.



A Social Enterprise is a company that sets out to help the community but without making a profit.

What are business objectives, effective objective and SMART targets

Business Objectives: 
General objectives are acquired by any business, these aren't specific and are commonly based. For example, to survive and to earn profit.

Effective Objectives:
These are specific objectives an individual business will decide themselves, as appose to 'objectives'. For example, to earn $500 profit in 1 week. These give a business motivation and workers a target to aim for, helping to achieve tasks.

Skills of an Entrepreneur:

To be a successful entrepreneur you must attain several important features, in order to survive as a business. Some of the skills include:

Self management, Investable business, leadership, patience, decisiveness, confidence, organisation, risk taking, independence and open minded. 

What is an Entrepreneur?

Strictly speaking, the definition according to wikipedia of an entrepreneur is as follows:

A person who organises and operates a business or businesses, taking on financial risk to do so.

Examples of successful entrepreneurs include: 

Alan Sugar, Jay Z, Richard Branson, Bill Gates.

Introduction to blog

This blog is designed by James Impey and Matt Mannix and will help us prepare for our GCSE business studies final exam. The blog will contain information about Unit 1 and Unit 2 topics. There will also be relevant video clips on key topics that are taken from Youtube.