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Business studies. - Coggle Diagram
Business studies.
Business in the real world.
Basic functions of a Business.
Sectors
Business functions.
Dynamic nature of a business,
How a business is affected by the changes in the external environment.
Legal
Environmental
Technological
Envriomental.
Purpose of a business
to provide a good or a service and to connect customers on a commercial basis.
To satisfy needs and wants,
To consider opportunity cost when making a decision
They use the for factor of productions.
Business ownersip
Partnerships
private limited companies
Factors
Setting up a business and objectives.
Business aims.
Business objectives.
Business planning.
Basic financial terms.
Fixed cost( does not change with the output.)
variable cost (cost per unit * quantity made.)
Revenue (selling price * quantity sold.)
Total cost (Fixed + variable cost added together.)
Profit (revenue - total cost.)
Expanding a business.
organic
Inorganic
Judgement
Diseconomies of scale.
Influences on a business.
The economic climate on abusiness
Interest rates
Business
Customers
Legislation
Positives of consumer law
Negatives of consumer law.
Technology
E commerce refers to the buying and selling of products through a device connected to a network/
What does it does rely on.
It relys on a seller who has the products and services online.
It requires a the right equipment and infilstrucre needed to view and sell products. This means they have to be financed.
A network that enables information and payment to be exchanged.
advantages and disadvantages.
Advantages
It attracts customers from the globe.
They can sell at any time of the day or night.
They can receive payment immediately.
Reduced over head costs compared to running the physical shop.
Disadvantages
Procedures are required for products ad services to be delivered on time.
Over head cost are high compared to running a physical shop.
There is a need to maintain and update the to maintain and update the technologies , including security software , which may be expensive.
Business operations
Efficiency in production
Lean production
The role of procurement
Just in time.
Cons
Pros
Just in case.
Cons
Pros
Concept of quality
Total quality management
Cons
Pros