The role of business

• What is the main focus of the video regarding business enterprise?


  The video investigates the role of business enterprise, including the purpose of a business and the role of an entrepreneur.
• Why is it important for someone studying business to know the role of business?

  It is important to understand the role business plays and what businesses exist to do.
• What are the three most fundamental roles of businesses discussed in the video?

  1. To produce goods or provide a service to meet customer needs
  2. To add value
  3. To make a profit
• What is the purpose of a business in terms of goods and services?

  The purpose of a business is to create goods or provide services that customers want or need.
• How does a successful business aim to make a profit?

  A successful business aims to provide goods or services that customers want at a price they are willing to pay.
• What are goods in the context of a business?

  Goods are tangible items a business makes to sell to customers or other businesses.
• Can you give examples of goods?

  Examples of goods include iPhones, headphones, gym wear, and machinery.
• What distinguishes services from goods?

  Services are intangible and do not physically exist, while goods are tangible items.
• What is an example of a service?

  An example of a service is having your haircut.
• How does Gymshark fulfill its role in providing goods?

  • Gymshark provides gym clothing and athletic gear.
  • The business makes a profit by meeting customer needs.
  • Customers are willing to pay higher prices due to effective need fulfillment.
• What happens if a business does not meet customer needs?

  If customer needs are not met, the business will be unsuccessful as customers have no reason to buy the product or service.
• What are some ways businesses can meet customer needs?

  Businesses can meet customer needs through product features, quality, price, and added extras like delivery options.
• What was a significant event for Gymshark during a Black Friday sale in 2015?

  Gymshark's website crashed, and CEO Ben Francis hand-wrote 2500 apology letters to affected customers.
• How does Gymshark target its market?


  Gymshark targets 18 to 25-year-olds with a love of fitness and fashion.
• What is the significance of influencer marketing for Gymshark?

  Influencer marketing helps make Gymshark culturally relevant and appealing to customers.
• How does Gymshark ensure high-quality customer service?

  High-quality customer service is central to Gymshark's philosophy and contributes to customer trust and value.
• What is the final role of business discussed in the video?

  • The final role of business is to add value.
  • Adding value makes a product or service more appealing to customers.
  • Successful value addition can lead to higher prices and profits.
• How does adding value affect customer willingness to pay?


  When a product is more appealing, customers are willing to pay more for it.
• Can you give an example of adding value in a business?

  A Fish & Chip shop adds value by sourcing, cutting, and frying potatoes to make chips.
• What are some ways a business can add value?

  • Convenience
  • Branding
  • Quality
  • Design
  • Unique Selling Point (USP)
• How does Gymshark add value through convenience?

  Gymshark sells products online, offering next-day delivery and a simple return policy.
• How does branding contribute to Gymshark's success?

  Branding encourages customers to pay more for products associated with desirable influencers and fitness professionals.
• How does Gymshark ensure quality in its products?

  Gymshark produces good quality clothing and charges higher prices than competitors to meet customer expectations.
• How does design add value to Gymshark's products?

  Gymshark has different collections with unique features tailored for specific workout needs.
• What is a Unique Selling Point (USP)?

  A USP is a feature that makes a good or service stand out from the competition.
• How does Gymshark create a USP for its products?

  Gymshark markets unique features of its collections to differentiate from other gym clothing brands.
• What is the current valuation of Gymshark?

  Gymshark is valued at over 1 billion dollars.
• What roles do entrepreneurs play in business?

  • Organize resources
  • Make business decisions
  • Take risks for financial gain
• Why do entrepreneurs take risks?

  Entrepreneurs take risks in hopes of making financial gains and achieving more freedom than traditional employment offers.
• What is one way an entrepreneur organizes resources?

  An entrepreneur organizes resources by bringing together land, labor, and capital.
• How did Ben Francis start Gymshark?


  Ben Francis started Gymshark with his own savings and manufactured clothing in his parent's garage.
• What decisions does an entrepreneur need to make?

  An entrepreneur needs to decide what to produce, how much to produce, and whether to invest in resources.
• What has been the outcome of Ben Francis's entrepreneurial decisions?

  Ben Francis's decisions have resulted in Gymshark becoming a global brand valued at over 1 billion dollars.