BUSINESS ESSENTIALS

Multilevel Marketing (MLM), also known as network marketing, is a type of direct sales strategy that involves recruiting individuals to sell products or services through a hierarchical organization structure. Key Features of MLM: Hierarchical Organization: MLM organizations are structured like a tree, with a top-level promoter and a network of independent distributors below. Recruitment-Based Sales: […]

Sure, here’s an explanation of a POS (Point-of-Sale) system: POS point-of-sale is software and hardware designed to manage a store’s sales, inventory, and customer information. It’s the central hub for all transactions and operations within the store. Key Features: Inventory Management: Tracks items, quantities, and prices. Sales Tracking: Records sales, calculates totals, and generates reports. […]

Capital Expenditure (Capex) Capital expenditure (Capex), also known as investment expenditure, is the amount of money spent on assets that are used in the production or sale of goods and services. These assets usually have a long-term useful life and are typically purchased for use in the operation of the business. Examples of Capex: Purchasing […]

Income Elasticity of Demand The income elasticity of demand measures the responsiveness of quantity demanded to changes in income. It is a measure of how much the quantity demanded of a good changes in response to a change in income. Formula: Income Elasticity of Demand (ε) = %ΔQd / %ΔI where: ε is the income […]

Brick-and-mortar refers to businesses that have physical locations where customers can interact with the company in person. These businesses typically have a tangible presence in a particular geographical area, such as a brick-and-mortar store. Key characteristics of brick-and-mortar businesses: Physical location: Have a physical space where customers can visit. Interaction with customers: Allow customers to […]

Force majeure is a term used in contracts to describe events that are beyond the control of both parties and make it impossible to fulfill the terms of the contract. These events are often referred to as “acts of God” or “superior force.” Examples of force majeure events: Natural disasters (e.g., hurricanes, earthquakes, floods) Acts […]

Pareto analysis is a technique used in statistics to analyze the relative importance of multiple factors influencing a particular outcome. It involves arranging the factors in descending order based on their contribution to the outcome, with the most significant factors at the top. This analysis helps to identify the key factors driving the outcome and […]

Disruptive Innovation Disruptive innovation is a process of creating a new technology or service that fundamentally changes the way an industry is structured. It often originates from outside of the existing industry, and seeks to challenge the established players and disrupt their dominant positions. Key Principles of Disruptive Innovation: Low-cost, low-value products: Disruptive innovations typically […]

Soft Skills Soft skills are interpersonal and intrapersonal abilities that enable an individual to interact effectively and navigate various situations. They are often referred to as “human skills” or “employability skills.” Key Soft Skills: 1. Communication:– Listening actively- Expressing clearly- Persuasive writing and speaking- Non-verbal communication 2. Teamwork:– Collaboration- Conflict resolution- Leadership- Adaptability 3. Problem-solving:– […]

Target Market Definition: A target market is a specific group of consumers who are most likely to be interested in a company’s products or services. It is a subset of the overall market that is defined by specific demographic, geographic, behavioral, and psychographic characteristics. Key Elements of a Target Market: 1. Demographics:– Age- Gender- Income […]