Enterprise Flashcards
Enterprise
An organisation that provides goods or service
Purpose of an enterprise
To offer goods or services to customers
Some enterprises offer both
Customer service
A business can build up a reputation by offering good customer service
Customer service is about…
How well you are treated How well staff know about products How quickly email/phone call are responded Call centre experience After sales service How complaints dealt with
Why might a business find it difficult to attract customers?
Customers may not know you exist
Business will not have the budget to spend on advertising
Competitors may have a good reputation
Customers may have loyalty to the competitors, do not want to try a different business
How to improve customer service
Use of technology➡️online orders, contactless, QRcode
Set up questionnaire to get feedback
Ensure staff are loyal and committed to customer by motivating them
Equation for profit or loss
Total sales-total costs=profit or loss
How done an enterprise be more competitive
By adding more value to the product or service that it sells or provides
What is e-commerce, e-retaliating and m-commerce
E-commerce and e-retailing is where goods and services are brought over the internet. This is how done more and more by using m-commerce which is ordering online using mobile technology
Factors of adding value
Adding value to... Quality of product of service Design Convenience Branding and brand image Unique selling point(USP)
Term market (in business studies)
Where buyers and sellers interact to buy service or products.
Example: car market, someone wanting to buy a car has a number of different brand to choose from
How can creativity and innovation meet customer needs
Developing new ideas that allow them to fill a gap in the market. This is because they will be offering something that no other business does
Revenue
Income an enterprise receives through different activities or income it receives from selling goods/services
Revenue equation:
Number of sales / price per unit
Enterprise can also receive revenue from…
- interest paid on saving
- rent out a property or office space
- invest in other companies
- selling assets
Profit equation
Total revenue - total costs
Gross profit equation
Turnover - cost of sales
Net profit
Gross profit - expenses
Two types of costs are.,,
Running costs
Start up costs
Start up costs are..l
Items needed before the business can start up
Running costs are….
Day to day costs of running the business once it has started
Running costs are split into…
Fixed costs and variable costs
Fixed costs (indirect costs )
Has to be paid no matter how many sales a business makes
Eg: rent, salary, business rates, loans repayment, insurance
Variable costs (direct costs)
They vary depending on the amount of goods sold or produced
Eg: stock, packaging, fuel
Variable costs equation
Amount of goods/product x cost for one good/product
Debtors
Anyone that owes business money
Creditors
Anyone that a business owes money to
Capital
A business needs to set up or buy new assets
