Business

• What is a market

  Any place buyers and sellers meet. Goods and services are exchanged for money
• What is a business

  An organisation that provides good/services
• What is a customer ‘need’ and example

  Something you have to have to survive e.g food, water, shelter
• What is a customer

  Someone who buys a product/service
• What is a consumer

  Someone who uses a product/service
• What is a customer ‘want’ and examples

  Something that improves your standard of living e.g iPod, mobile, phone, car
• What is a competitive business environment

  Businesses that offer similar goods/services
• Competitive environment - successful businesses meet the needs of customers better than competitors through Cheaper prices

  Advertising

  Better quality of products

  Good availability in stores

  Attractive packaging

  Better designs of products
• What is a dynamic business environment

  Business world is constantly changing
• Resources needed to provide goods and services

  • Raw materials
  • Machinery & equipment
  • Workers (labour)
  • Site
• Raw materials

  Needed to manufacture a product, capital is used to purchase them, businesses will find the best suppliers based on quality and price
• Machinery & equipment


  Needed to carry out day to day operations and manufacture. capital is used to purchase them. can be a big expense so has to be chosen carefully and used often.
• Workers (labour)

  People who complete operations within the business in return for payment, businesses must recruit workers with the right skills for their jobs, workers are the most expensive form of resource for most businesses
• Site

  The place where a business will carry out its activities e.g. office, factory, retail outlet. businesses can choose to rent as a cheaper option to buying premises. factors of location are important when deciding upon site e.g. closeness to customers.
• What is a private sector businesses

  Owned by private individuals. Aim to make as much profit as possible

  Examples: restaurants, hair dressers, beauty salons, clothing stores, car sales.
• What is a dynamic business environment

  Business world is constantly changing
• Dynamic environment - business world affect by changes in following factors

  Technological e.g inventions, robotics, ICT

  Political e.g law, political parties

  Society e.g taste, fashion , culture

  Market e.g competitors, new markets

  Environmental e.g reduce pollution, alternative materials

  Economic e.g income, unemployment
• What is the scale of the business activity

  Local- small and serves local area e.g Cardiff. example local newsagent

  National - operates in one country e.g UK. Has multiple outlets. Example Royal Mail

  Global- a business that operates throughout the world in more than 1 country Is international and multinational example McDonald’s
• What is specialisation

  Business that focus within a particular industry e.g car manufacturing
• what is division of labour

  Splitting your workforce up so that they can specialise in different tasks and skills which are their strengths
• what is a ‘good’ and example

  A physical product examples car, mobile phone, TV, laptop.
• What is a producer good and example

  Used by businesses. Bought from specialist suppliers. B2B - business to business
• What is a consumer good

  Used by public. Bought in shops, online or through catalogues. And is B2C - business to customer
• What is a durable product and examples

  Long lasting (at least 3 years).

  Examples: TV, printer, washing machine
• What is a non durable product and example

  Consumed immediately.

  Examples: food & drink products
• What is a service and example

  An activity someone does for you in return for payment. Examples: Hairdresser, painter, taxi, window cleaner
• What a personal services and examples

  Aimed at customers

  Examples: childcare, wedding planner, personal trainer
• What are commercial services and examples

  Aimed at businesses

  Examples: accountancy, market research, website support.
• What is the definition of ‘tertiary’ and examples

  Business sell finished goods/services to customers. Known as “services sector”

  All retail shops

  Hotels and restaurants

  Financial services e.g banks

  Education e.g schools

  Defence e.g army, navy
• What are the tertiary trends

  Always more demands for new things from customers.

  approx. 80% of UK workers.

  Attracts the most interest from people when doing work.

  Sector has risen rapidly.
• What is the definition of secondary and examples

  Raw materials are turned into goods known as “manufacturing goods”

  Car manufacturing

  Clothing manufacturing

  Food manufacturing
• What is the definition of ‘primary’ and examples

  Raw materials are extracted from the ground

  Fishing

  Coal Mining

  Forestry

  Farming
• What is the ‘primary’ sector trend

  Some goods are imported

  Lack of interest in these jobs

  Very small part of economy

  Not all resources grow in the UK
• What is the ‘secondary’ sector trend

  Approx 10% of UK workers

  Goods imported from abroad if produced to a higher quality

  Lack of interest in these jobs
• What is the term “integration”

  Businesses that join together
• What is a chain of production and example of one

  Link between the sectors

  Example

  Primary - cutting down trees

  Secondary - furniture manufacturing

  Tertiary - furniture shop
• What is public sector businesses and examples

  Owned by the government. Aim to provide a service for the general public.

  Example: police, education, army, hospitals, leisure centres
• What is a private sector businesses

  Owned by private individuals. Aim to make as much profit as possible

  Examples: restaurants, hair dressers, beauty salons, clothing stores, car sales.
• What is conglomerate intergration

  2 businesses that join together that are unrelated. They operate in different markets and have no connection to each other
• What is a backward vertical integration

  A business joins with another at the previous stage of production e.g tertiary business joins with secondary business