Unit 1.1Business studies revision poster

What is a Business

A business is an organisation involved in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to provide service to customers for profit. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning.

A business is an organisation which produces goods and services for their customers.Businesses buy their goods and supplies from their suppliers they then sell these to their customers.

Customer = Person or orgaisation which buy or is supplied with a product by a business.
Consumer = The person who ultimatly uses the product/consumes it.


Understanding Customer Needs

Understanding customers is the key to giving them good service. To give good
customer care you must deliver what you promise. But great customer care
involves getting to know your customers so well that you can anticipate their
needs and exceed their expectations.

To find out what the customers needs are the business has to do specific research...

Primary Data
= This is s as first hand research when you yourself are getting the information, they are specific to your business.
e.g. questionnaires, surveys, observing
Secondary Data
= This is second hand data. One that has been collect by someone else, this is not specific for your business but may relate.
e.g. internet, government statistics, yellow pages

However collecting data is one thing but collecting a type of data is another...

Quantitative Data = This is data that can be counted, it has numerical figures. This is mainly seen in closed question. e.g. closed questions, tick boxes, numbering

Qualitative Data = This is data that is based on peoples opinions and thoughts. e.g. Focus groups, face to face interviews on opinion

Market Mapping

Using a market map has many advantages such as being able to spot a gap in the market, however just because there is a gap it does not nessasserily mean that there is a demand. It also encourages market research although the research may not always be reliable. Even though the market map is useful for analysing the competition it does not always gaurentee a sucess.

Competition

Competition is when two or more teams are fighting against each other physically or verbally to win something such as land or gain something such as more customers for their business.

Added Value

This is the price that is added at each stage of making the good. Many product prices are raised because of the procedures taken to make them as the customers (people) themselves are not bothered to do the stages.

e.g. a bag of chrisps and potato itself have different prices where the potato is cheaper to buy, but the added value of the chips is given by the packages and procedures taken in making the chrisps.Added value is done in sectors
Primary - Extraction of natural resources
Secondary - Manufacturing
Tertiary - Service or Product

Franchise

  • A fanchise consists of 2 things a Franchisor and a Franchisee.

    Franchise = An agreement in which an established business name is sold to an individual or company to start trending under the name.
    Franchisee = Is a company or person who bought the franchise.
    The Benefits
    • Gets training/ experiance
    • Equipment, materials for product/sevice
    • More customers
    • Makes business profit more quickly (as it is an established brand)
    • Back up service
    The Drawbacks
    • You have to pay a royality
    • Your not the main boss (cant sell the business)
    Franchisor = The business selling its right to use its product or service
    The Benifit
    • More well known
    • Makes More money
    • Expansion without having to spend
    The Drawbacks
    • The risk of losing your reputation by being poor quality & ruin reputation

Topic 1.1 revision

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