Business Studies

Wants and needs

Needs and survival

Wants - Luxury items

Goods and services

Provided by businesses

Goods - Tangible products

Services - Intangible products we experience

Consumer goods or personal goods

Businesses to consumers

Producer goods

Businesses to businesses

Producer goods - Produced by one business and sold to and used by another

Personal services - Services that businesses sell to consumers

Commercial services - Produced by one business, used by another

Durable and non-durable

Non-durable - Consume immediately

Lasts a matter of weeks or months

Durable goods - Last for years or even decades

Businesses - Organisations started by entrepreneurs to provide goods and services

Best businesses - Satisfy wants and needs the best

Risk of starting a business

Business opportunity

Recognised the demand for a product or service

Not just concern for providing for the needs and wants

Profit

Earn more from selling it than is spent producing it

Business - An organisation that aims to meet our needs and wants

Goods - Tangible products we can touch

Services - Things we buy to experience

Competitive environment - External environment in which a business operates and competes

Direct competitor - Another business that provides a similar product

Indirect competitor - Provides a different product that customers might choose

Marketplaces

Evolving

Needs and wants of customers

Change over time

Dynamic environment - Must be able to adapt to it to survive

Internet - Changed the way companies operate

Made some goods and services obsolete

Adapt - Artifical intelligence and virtual reality

Satisfy wants and needs

Predict how they'll change

Chose to concentrate on traditional film processes

Still trading today

Bankrupt - Failed to adapt to the dynamic marketplace as well as competitiors

Finite resources

Only so much to excavate

Economic problem

Scarcity

Unlimited want

Limited resources

Impossible for everyone to have everything

Choice

Government 

More funding from hospitals

Hiring teachers

Opportunity cost - Loss of alternatives when one option is chosen

New hospitals

Not having new teachers

Choices

Limited resources

Opportunity cost

Operate efficiently

Entrepreneur - Risk of starting a new business

Business opportunity

Recognised the demand for a product or service

New ideas

Changes in technology

Changes in consumers' desires and habits

Business idea

Original

Variation

Increase

Convenience

Superior customer service

Respected brand name

Specialising - Focus on a particular activity

Competitive advantage

Associate brands with products

Increases production

More efficient and effective

Practice

No skills or experience

Businesses

Local business - Selling a small area or community

National level - Several locations within the same country

Multinational - Multiple countries

Larger business - Economies of scale

Lower prices

Local businesses

More aware of customers' needs

Respond more quickly

Interdependent nature of business

Communicate and work together

Success

Primary sector

Secondary sector

Tertiary sector

Business activity

Private sector

Public sector

Most common type of industry in a country

Country's level of economic development

Extracting raw materials from the earth

Developing countries

More people

Countries become more developed

Benefits of greater investment

Human and capital infrastructure

More employed in…