Business

• Local Scale businesses are shops/sites that sell to a small geographical area.
• National scale
• National Scale


  Multiple shops but only selling across one country
• International Scale


  Global scale, multiple different countries
• durable goods


  Durable goods have a lifespan of more than three years
• Non Durable goods


  Have a lifespan of fewer than three years
• Producer goods


  goods that are used by businesses to either produce other goods, or help in the provision of providing services. An example of a producer good is machinery or tools.
• Services


  Businesses provide services to customers
• Personal Services


  Personal services are services that are provided for individual people.
• Examples of personal services


  car wash, house cleaning, car repairs, window cleaning etc
• commercial services


  Commercial services are services usually provided to businesses
• examples of commercial services


  logistics and transportation, stock management, waste management, warehousing, cleaning and recruitment
• Public sector


  anything that is produced, sold or provided by organisations owned and run by the government.
• Private Sector


  owned by individuals and shareholders
• shareholders


  A part owner of a private or public limited company.
• profit


  The amount of money made after all costs are deducted
• capital


  The money and equipment invested into a business.
• What four resources are needed to produce goods and services?

  Land, Labour, Capital and Enterprise
• 4 Things entrepreneurs must have
• 4 things entrepreneurs must have

  • Show Initiative
  • be innovative
  • identify opportunities
  • Organise resources
• Business Aim


  the overall target or goal of the business
• Business objective


  the steps a business needs to take to meet its overall aims.
• S.M.A.R.T

  • Specific
  • Measurable
  • Agreed
  • Realistic
  • Time-Bound
• Dynamic Environment


  a business environment that is rapidly changing
• Internal Factors for a change in environment

  • sudden change in demand
  • faster or slower growth
  • a change in business direction
  • achieving objectives early or being far behind expected
• External Factors for a change in environment

  • increase in consumer incomes
  • a change in the competitive environment
  • new taxes or legislation
  • increased pressure on social issues such as sustainability
• Stakeholder


  any person, group of people or other organisation that has an interest in the activities of a business.
• Shareholders and owners are people in a public limited company (PLC), who influence the business’ aims, objectives and strategic activities. In a limited company (Ltd), these are people who make business decisions but need to agree them with the other shareholders. Shareholders are part owners of a private or public limited company.
• Managers are Staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required.
• Employees are Staff who carry out the day-to-day work of the business.
• Customers are People who buy products or services from the business.
• Suppliers are Other businesses and organisations that provide products or services to the business, eg a utility company that supplies it with electricity, or a business that provides the seats used when producing a car.
• Local community are People, organisations and businesses that live or are located in the area around the business.
• The business will make tax payments to both local and central government.
• Explain


  Point

  Why

  Consequence
• Analyse


  Identify

  Apply

  impact
• Pros to market segmentation 3 points

  Meet customer needs better

  increase brand loyalty

  decrease price sensitivity which allows to raise price
• sales revenue


  selling price per item x no sold
• total variable costs


  variable cost per item x no sold
• total costs


  fixed costs + total variable costs