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Business - Coggle Diagram
Business
Scarcity
A shortage of a resource.
examples
wheat
land
oil
scarcity of a product
caused by a limited supply of factors of production
Usually makes products more expensive.
Factors of production
land
natural resource
everything that comes from the ground
can be
renewable
timber
non-renewable
oil
gold
labour
work done by people
value of workforce
depends
motivation
skills
workers' education
capital
capital goods
man-made objects
machinery
equipment
chemicals
includes industrial and comercial buildings
enterprise
set of skills used to develop an idea into a business
combines the other three factors of production
examples
inovation
risk-taking
organization
specialisation
when a
person
business
region
focuses on
on producing a small number of
goods
servies
country
people are suited to different jobs depending on their skills
division of labour
allows
employee to focus on performing a few tasks
the
businesses
empoyees
to fucus on what they are best at
region
countries
levels
employees
advantages
may be paid more
might choose the job they want depending on their skills
disadvantages
machines can replace them because
they can do their tasks
more quickly
cheaply
business
advantages
improve quality and efficiency
develop possitive reputation
may be able to charge higher prices
the employees will become faster at producing goods
desadvantages
training of employees will be varied and expensive
employees will become bored with the tasks
the world
advantages
scarce resources used more effectively
country that specialises can trade with other countries for goods
people benefit for the jobs and incomes
disadvantages
some countries struggle to
produce a good
that is required globally
deliver a service
countries can suddenly become beaten on price
and
the entire workforce is no longer in demand
Needs and wants
Needs
you could not live without it
examples
water
food
clothing
wants
not essential for life
something you would like yo have
examples
car
iPhone
laptop
Opportunity costs
Business needs to decide in what to invest their money on.
examples
new machinery rather than a tv advert
a new manager rather than an assistant