What is a Business Unit 1.1 Flashcards
What is a business
an organisation that transforms resources/inputs into outputs/products purchased by their customers
Describe a business
Diverse and present in our everyday lives
What do Businesses supply and to whom
wide range of goods and services , which are demanded by individual consumers and other businesses
Define a good
physical product e.g suit/house
Define a service
intangible items e.g insurance/decorating
Define product
general term which includes goods and services
Business are very important…..
….. to the UK
Why are businesses important to the UK
They bring benefits to the country, its economy and its inhabitants
State the benefits of businesses to the UK
Create Employment
Create Income
Create New Products
Enhance country’s reputation
Explain how Businesses create employment
Businesses create jobs for individuals. In many cases the business only has one person in it and in some cases the business employs hundreds of thousands of people
Explain how Businesses create income
Businesses earn profit from their activities which are paid to their owners who therefore earn income. Employees are paid for their work
Explain how Businesses create new products
Businesses improve lives of people by creating new goods and services. Pharmaceutical businesses (GSK) research and develop new medicines that an cure illnesses, extend life expectancy and improve the quality of people’s lives
Explain how Businesses enhance a country’s reputation
Successful businesses help to establish and maintain a country’s reputation for being innovative and forward looking.
How businesses enhance a country’s reputation UK example
UK has a strong global rep for producing top quality music and TV programmes
(Unit 1.1.2) Businesses exist to ……
transform inputs/resources into goods and services that are in demand from individuals and other businesses
satisfy our needs for a range of goods and service which we would be unable to provide for ourselves
provide a means to satisfy people’s desire to be creative or to make money
What does production process undertaken by business do to the inputs
adds value
Why does an increase in value occur to the inputs
they are demanded by certain groups of consumers who will receive benefits from having that product
How do businesses interact with us throughout our daily lives
Modern methods of communication have brought businesses into our homes , relationships and leisure activities
Give an example of business interaction within our everyday lives
Using internet to research / communicate with friends as a business would have supplied device (phone/laptop) you use to connect to the internet and a business would have provided internet service and web pages you view
Why aren’t we able to provide some goods /services ourselves
- we don’t have the skills/ time to source them
- the costs of supplying them ourselves would be prohibitive
An example of this would be without specialist businesses
It would be unlikely we would be able to fly to other countries as we don’t have the resources /skills to source this service
Privately owned businesses are an efficient means of…
supplying the wide variety of goods and services needed by modern economies
expand on bs exist to satisfy people’s desire to be creative or to make money
some entrepreneurs start businesses that allow them to express creative talents
others make a fortune from creating and expanding businesses
people emplyed by businesses have to make many
descisions
What type of descisions do entrpreneurs have to make
vital descisions
Give eg of vital descisions entrepreneurs have to make
where to locate the business how to turn ideas into businesses what to sell how many products should be produced what price to sell the products @
Who are the descision makers in larger businesses
managers
Give examples of descions maangers have to make
whether to produce a new product or not
whether to try to sell in a foreign market
whether to buy another business
State some inputs
people capital requirements finance land and natural resources material and components
Wha is the transformation
process that adds value
State Outputs
goods
services
waste
What are the types of business
Business to Business (B2B)
Business to Consumer (B2B)
What is B2B
When businesses supply products to other business organisations
Give an example of B2B
Tata Steel : manufactures steel then sells it t businesses such as car manufcacturesr to help them supply their own products
What is B2C
When a business supplys products directly to the final consumer
Give examples of B2C
Mcdonalds
Sony
What is the primary sector
concerned with extraction of raw materials /natural resources FROM THE LAND
Give examples of activities in the primary sector
fishing mining quarrying oil agriculture forestry gas extraction
What is the Secondary Sector
concerned with manufacturing : taking raw materials from the primary sector and converting them into new products
Give examples of activities in the Secondary Sector
manufacturing
construction
supply of electricity , gas and water
What is the Tertiary Sector
concerned with providing a service
Examples of activities in the Tertiary Sector
teaching (education) catering hotels transport health
TRUE OR FALSE : some businesses operate in more than one sector
TRUE
Give an example of a business that operates in more than one sector
BP
Primary: gas extraction
Secondary: processing mineral oil into petrol and other products
Tertiary: selling products via retail outlets
What has the tertiary sector done
supplied an increasing proportion of production
What has the tertiary sector supplying an increasing proportion of production led to for manufacturing busiensses (concerned with secondary sector)
they’ve become less improtant
Why have manufacturing businesses become less important
businesses overseas able to supply
