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Business Activity (pt. 2) (Business Aims and Objectives (Definitions…

- - - - The difference between revenue and costs
    - - The share of the total market for a product
    - - The business can pay its costs but has nothing left
    - - The business becomes larger
    - - What the business wants to achieve
  - - - Simply, to survive
    - - To increase profit or market share.
- - - - People with interest in the business who work in the business
    - - People with interest in the business who do not work within the business.
    - - Groups of people or individuals who have an interest in a business
  - - - Owners
        
        See profit as their main aim so will want to run the business cost-effectively
      - Employees
        
        They want to receive a fair wage
        
        Without this they could go on strike
    - - Customers
        
        They want good service and fair price
        
        without this they could go to competitors
      - Suppliers
        
        They want to be paid on time
        
        Delayed payments means that the suppliers will refuse orders
      - Government
        
        The government wants businesses to succeed
        
        However, a rise in income tax means less money for customers
      - Local Community
        
        The local community will want jobs in their area
        
        However they could protest against new usiness development
- - - - Using own resources
    - - Two or more businesses willingly merging
        
        e.g. Currys PC World
    - - One business takes control of another
    - - Two businesses in the same product sector joining together
    - - Two businesses in different production sectors joining together
    - - Two businesses coming together with no connection
  - - - Reduce the price, open more shops
    - - Target a wider range of customers
    - - Selling more prodcuts
    - - Selling more than competitors