Business 1

• New business ideas often come about due to changes in technology, changes in consumer demand, and the obsolescence of products and services
• Entrepreneurs recognize opportunities created by changes in the market to develop innovative solutions that meet the changing needs of customers
• Advances in technology create new opportunities for businesses to develop innovative products and services
• Consumer demand changes over time, creating opportunities for businesses to develop new products and services that meet these changing needs
• Products and services can become outdated due to changes in technology or consumer demand, creating opportunities for businesses to develop new and innovative solutions
• New business ideas can come about through original ideas or by adapting existing products, services, or ideas
• Original ideas are new and unique concepts that arise when entrepreneurs identify a gap in the market or a new need that has not yet been met
• Adapting existing products, services, or ideas involves taking an existing concept and making it better or more suitable for a different market or customer base
• The key to business success is identifying a need or opportunity in the market and developing an innovative solution that meets the needs of customers in a unique and valuable way
• The purpose of business activity is to produce goods or services that satisfy a need or demand in the market
• Goods are physical products like bicycles and T-shirts, while services are non-physical items such as hairdressing, tourism, and manicures
• The ultimate goal of businesses is to create products that meet the needs and preferences of customers, build customer loyalty, increase brand awareness, and generate revenue
• The third purpose of business activity is to add value to products or services, which can differentiate them from competitors, create a unique selling point, and increase customer satisfaction
• Adding value is the difference between the price charged to the customer and the cost of inputs required to create the product or service
• Real-life examples of methods of adding value include branding, convenience, quality, unique selling points (USPs), and design
• Entrepreneurs must organize resources, make business decisions, and take risks to create new business ideas or inventions and build thriving businesses
• Head to savemyexams.com for more awesome resources
• Page 1 of 26
• © 2015−2023 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
• GCSE Business Edexcel
• Business stakeholders


  Individuals or groups that affect or are affected by the actions of a business
• Business stakeholders


  • Groups with an interest in the activities of a business
  • Stakeholders can have different objectives based on their different roles and perspectives
  • A business needs to take into account the needs and interests of its stakeholders to operate successfully and ensure long term success
• Stakeholders


  • Owners (shareholders)
  • Employees
  • Management
  • Suppliers
  • Customers
  • Pressure groups
  • The local community
  • The government
• Owners (shareholders)


  Shareholders are individuals or entities who own a portion of a company's stock. Their primary objective is to maximise their returns on investment.
• Employees


  Individuals who work for a company. Their primary objective is to earn a living, have job security and be compensated fairly for their work and have a safe working environment.
• Management


  Individuals who are responsible for the day-to-day operations of a company. Their primary objective is to meet the company's goals and objectives.
• Suppliers


  Individuals or businesses who provide goods or services to a business. Their primary objective is to sell their products or services and make a profit.
• Customers


  Individuals or businesses who purchase goods/services from a business. Their primary objective is to receive high-quality products or services at a fair price.
• Pressure groups


  Organisations that seek to influence the policies and actions of businesses or governments. Their primary objective is to promote a specific cause or agenda.
• The local community


  Individuals and organisations that live or operate in the area where a business operates. Their primary objective is for the business to have a positive impact on the community.
• The government


  Responsible for creating and enforcing laws and regulations that affect businesses. Their primary objective is to promote the public good and protect the interests of citizens.
• Business activity can have various impacts on stakeholders
• Stakeholders can impact business activity in various ways
• Stakeholder groups can have conflicting interests and objectives, which can lead to tensions and conflicts
• Real life Examples of Stakeholder Conflicts

  • Employees vs. Employers
  • Pressure Groups vs. Government
  • Local Communities vs. Developers
• The interests of stakeholders should be considered whenever a question asks you to weigh up business choices, typically in the longer-answer questions.
• Types of Technology used by Business

  • E-commerce
  • Social Media
  • Digital communications
• 1. commerce


  A powerful tool for expanding the customer base and increasing sales, reducing costs by eliminating the need for physical storefronts and reducing overhead costs, offers businesses new channels for advertising and promotion.
• Social Media


  A powerful tool for businesses to increase sales by building relationships with customers and generating leads, a cost-effective alternative to traditional advertising channels, offers businesses new channels for building brand awareness and engaging with customers.
• Digital communications


  Offers businesses new channels for reaching customers and closing deals, offers a cost-effective alternative to traditional communication channels, has transformed the marketing mix by providing businesses with new channels for communicating.