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unit 1.1 business activity notes - Coggle Diagram
unit 1.1 business activity notes
needs and wants
a need is a thing that is needed for someone to live
a want is something that people would like but isnt essiential for living.
scarcity and opportunity costs
scarcity is where there are not enough materials for the amount of people that want the product
opportunity cost is the descions we decide to use our money on
factors of production
land
which is all natural resources
labour
is the amount of people that work
capital
is equipment and finance needed to produce the products
entreprise
is a business built from scratch
Example:
Enterprise
:
maryland's biscuits
Capital:
Machinery: ovens, scales, mixing machines, trucks
Money for: Ingredients/electricity
Land:
need
land
for the factories
land to store trucks - garage
Labour:
people
for making biscuits
management
drivers
purpose of business activity
consumer goods are goods that customers can see and touch to see if they want that product
consumer services products that are sold to public but cant be seen or touched
capital goods are sold to other businesses to help them out in their production process
how to add value to the business
branding easier to be seen more people will be interested if at a bus stop or on a big sign.
good service quality if high quality and personalised service more people will go to the shop as they will be known and the staff will know what to get the customer.
product features will have higher prices so more revenue and it will make it more significant
convenience customers will want to pay higher prices and will make it quicker
Example: Dominos Pizza
Ingredients in a domino's pizza:
mozzarella
pepperoni
chicken
pineapple
pizza dough