Why might a pharmaceutical company spend heavily on research and development?

A new medicine can be patented and sold without direct competition for many years. The high returns can repay years of costly testing.

How can changing the marketing mix open up a new market for a business?

A business can adapt its product, price, promotion or place to appeal to a new segment. A toy maker might launch a range aimed at adult collectors.

How can technology help a business reach new markets?

A website with online payment lets a business sell to customers far beyond its local area. Social media can promote the business to new groups cheaply.

Edexcel GCSE Business 1BS0

Enterprise and Entrepreneurship

Topic overview The dynamic nature of business Risk and reward The role of business enterprise

Spotting a Business Opportunity

Topic overview Customer needs Purpose and methods of market research Market research data and its reliability Market segmentation The competitive environment

Putting a Business Idea Into Practice

Topic overview Business aims and objectives Business revenues, costs and profits Cash and cash flow Sources of business finance

Making the Business Effective

Topic overview Business ownership and limited liability Franchising as a start-up option Business location The marketing mix Business plans

Understanding External Influences on Business

Topic overview Business stakeholders Technology and business Legislation and business The economy and business Responding to external influences

Growing the Business

Topic overview Organic and inorganic business growth Public limited companies and finance for growth Changes in business aims and objectives Business and globalisation Ethics, the environment and business

Making Marketing Decisions

Topic overview Product design, life cycle and differentiation Price and pricing strategies Promotion strategies and technology Place and methods of distribution Using the marketing mix to make business decisions

Making Operational Decisions

Topic overview Business operations and production processes Working with suppliers Managing quality The sales process

Making Financial Decisions

Topic overview Profit, profit margins and ARR Understanding business performance

Making Human Resource Decisions

Topic overview Organisational structures and communication Different ways of working Effective recruitment Effective training and development Motivation in the workplace

Growing the Business

Organic and inorganic business growth

3 things to know
Paper 2

Overview

Organic growth through innovation, research and development, new markets and technology, inorganic growth by merger or takeover, and the advantages and problems of each.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is organic growth?

Key term

How can innovation help a business grow organically?

Key term

What is research and development (R&D)?

Questions from this subtopic

Each one with the model answer underneath.

1
What is organic growth?
Model answer
Organic growth is expansion from within, by a business selling more of its own products. Organic growth is also called internal growth.
2
How can innovation help a business grow organically?
Model answer
Innovation brings new or improved products to market that competitors cannot yet offer. New products can attract new customers and raise sales.
3
What is research and development (R&D)?
Model answer
Research and development is the investigation and testing that turns new ideas into products. R&D is costly and slow, and many ideas never reach the market.
4
Why might a pharmaceutical company spend heavily on research and development?
Model answer
A new medicine can be patented and sold without direct competition for many years. The high returns can repay years of costly testing.
5
How can changing the marketing mix open up a new market for a business?
Model answer
A business can adapt its product, price, promotion or place to appeal to a new segment. A toy maker might launch a range aimed at adult collectors.
6
How can technology help a business reach new markets?
Model answer
A website with online payment lets a business sell to customers far beyond its local area. Social media can promote the business to new groups cheaply.

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Enterprise and Entrepreneurship

Spotting a Business Opportunity

Putting a Business Idea Into Practice

Making the Business Effective

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Sort every topic into what you know and what you do not, then drill only the weak ones.

Revenue = price × .

quantitycostprofit

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Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AGoods must be of satisfactory quality.

BGoods must be fit for purpose.

CGoods must be as described.

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Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Cash inflows means money coming into a business.

TrueFalse

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