Unit 1.1

Business studies revision plans

What is a business

A business is any organisation that makes goods or provides services.There are many types of business in the UK. These range from small firms owned and run by just one self employed person, through to large companies which employ thousands of staff all over the world.


A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers.

Market mapping

A study of various market conditions that is plotted on a map to identify trends and corresponding variables between consumers and products. Market mapping can help companies locate problem areas and figure out the source of problems by examining related variables.


Competition puts businesses under constant pressure to offer the best possible range of goods at the best possible prices, because if they don't, consumers have the choice to buy elsewhere. In a free market, business should be a competitive game with consumers as the benefits.

Added value

Added value is an amount added to the value of a product or service, equal to the difference between its cost and the amount received when it is sold. Wages, taxes, are deducted from the added value to give the profit


Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units. Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs. Examples of franchise: KFC, McDonald's, Subway, Starbucks.

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