UB - role of businesses in society & customer satisfaction Flashcards
what are benefits of good customer service ?
- enhances the organisations reputation
- good publicity from happy customers (bad experience will be spread through word of mouth)
- regular repeat orders (loyal customers)
- attract a better calibre of staff
Impact of poor customer service ?
- dissatisfied customers
- loss of customers
- bad publicity
- demotivated staff
- High staff turn over
- increased costs
- bad reputation
Ways to achieve customer service ?
- offering advice about products and their uses
- investigating late or missing orders
- assisting when errors have been made to orders/ deliveries
- dealing with general enquiries and complaints
- being polite and friendly to customers
what is wealth creation ?
The chain of production that adds value to the price the business charges
example:
flour, eggs, milk ➡️ oven ➡️ cake
what are the factors of prodcution ?
Capital
Enterprise
Land
Labour
(CELL)
What is capital in the factors of production ?
Capital in the man made reasources a business uses to produce a good or service
examples:
tools, machinery, equipment
What is enterprise in the factors of production ?
Enterprise is where entrepreneurs combine all factors of production to create an innovative idea (land, labour, capital to produce goods or services)
What is land in the factors of production ?
Land is all the natural resources a business produces for their goods or services
examples:
plot of land, coal, diamonds, wood, oil, water
what is labour in the factors of production ?
Labour is the workforce of the business who produces the goods and services.
Example:
employees, managers
what are types of goods ?
- DURABLE - long-life products and can be reused
- NON DURABLE - don’t last long often single use
- CONSUMER - goods consumed by private individuals
- CAPITAL - items that businesses own
What are some enterprising skills and qualities ?
Communication
Innovative
Risk Taking
Confident
Creative
Leadership
Determination
What are some reasons for becoming an entrepreneur ?
- you get to be your own boss
- opportunity to make a profit
- spot a gap in the market
- you have an entrepreneurial
- you want to turn a hobby into a business or are motivated to make a change
What are the sectors of industRY ?
- PrimaRY sector
- SecondaRY sector
- TertiaRY sector
(All end with ‘RY’)
What is the Primary Sector ?
Take raw materials and natural resources from the ground
Example:
Farming, Fishing
What is the Secondary Sector ?
They use the raw materials from businesses in the primary sector and convert them into PRODUCTS
Example:
Builders, Bakers
What is the Tertiary sector ?
This sector do not produce products they provide a service
Example:
Shops, Restaurants
What are the sectors of Economy ?
- Private
- Public
- Third
What types of businesses are in the Private Sector of Economy ?
- LTD
- Sole Trader
- Partnership
What is the private sector of economy ?
Owned by Private individuals (shareholders)
Controlled by the Board of directors
Financed by Bank loans, Private investments
Aim to make a profit
What is the Public Sector of Economy ?
Owned by Government
Controlled by government ministers
Financed by Taxes
Aim to provide a service to the public
example:
NHS, Police Scotland
what types of businesses are in the public sector of economy ?
Local Government
National Government
What is the third Sector of economy ?
Owned by Private individuals
Controlled by a board of Trustees
Finnaced by Donations, Fundraising, Government Grant
Aim to benefit a social cause
What type of businesses are in the third sector of economy ?
Social enterprise
Charities
Why do businesses try to understand needs and wants ?
- To increase sales and profits
- To grow the business
- To spot a gap in the market
- To decide on the correct target market
