the role of business enterprise

• The role of business enterprise and the purpose of business activity:

  • to produce goods or services
  • to meet customer needs
  • to add value: convenience, branding, quality,design ,USP
• Goods-physical items that may be fresh like fruit or vegetables or manufactured such as Heinz baked beans.
• Services-provide useful ways to help people live their life e.g;shops,restaurants,delivering groceries
• Customer needs- the services/products a person needs or wants to have a comfortable life.
• customer wants-what people choose to spend their money on after their weekly bills have been paid.
• to produce goods and services:

  • human needs basic goods like-shelter and food
  • fun things like mobile foods, restaurants, shopping centres etc.
• To meet customer needs:

  • businesses produce good/products to meet the needs of customers
  • wants are harder to sell than needs - customers must be convinced they want the product and then be convinced to buy the product from your business
  • firms who sell customer wants need to work harder on advertising, customer service, and product or service design
• Value added-

  • the difference between the

  selling price and the cost of bought-in goods and services ( the difference that creates the possibility of profit)
• Takes risk-

  • must be willing to accept risks and live with it
  • takes risks in the hope of reward -every business start up have a failed business
• Makes business decisions -

  • must get decisions right
  • can’t delay decisions
  • keep options open
  • decisions like choosing suppliers, staff, etc
• Organises business resources:

  • The entrepreneur is responsible for finding sources for these resources and arranging their arrival-(arrive at right time and at right place)
  • they can’t just do it once, the business must always run smoothly
• • the role of entrepreneurship:
  • organise business resources
  • makes business decisions
  • takes risks
• Entrepreneur:

  • a business person who sees opportunities and its willing to take risk to make them happen
• convenience-

  • UK people are becoming rich this means they have more money to get things more quickly and easily
  • e.g:food delivered to your house or supermarket ready meals etc.
• branding-

  • giving a product or service "personality" with a name and logo that makes it stand out.
  • adding a brand to your product means that a customer is willing to pay more money .
  • this may be because the brand carries an image they can identify with or want to be associated with
• Quality-

  • product that is manufacturered to the highest of standards increases the value consumer pay/place ;they know it will work perfectly and reliably therefore pay more.
• Design-

  • business designs a great-looking product, consumers will pay more, because of the look of the product.
• Unique selling point-

  • an original feature of a product that rivals don't offer
  • If USP is added then consumers have no choice but to pay the price charged,as the product will be the only way they can access the feature