Understanding Business

1. take raw materials from the ground eg farming, fishing, mining

1. provide a service eg hairdressers, hotel

1. use raw materials and make something with them eg builder, cake baker

Nota:

• Owned and controlled by one person All the profits kept by owner No one to share responsibility 

Nota:

• Owned by 2-20 people Ran by partners  Workload can be shared Profit needs to be split

Nota:

• Owned by shareholders Ran by Board of Directors eg Fly High Travel Ltd

1. owned by individuals
2. aim to make a profit

1. owned by the government on behalf of taxpayer
2. funded by taxes
3. eg hospitals, schools

1. survival
   1. to continue trading

      Nota:

      • *this is the first objective a business has 
2. profit
   1. more income than costs

      Nota:

      • *Main objective of any business in the private sector 
3. customer satisfaction
   1. to make customers happy, encourage repeat custom
   2. high quality
   3. trained employees

      Nota:

      • employees who are knowledgeable about products=able to handle queeries=happy customers
   4. customer care strategy
   5. customer complaints procedure

      Nota:

      • aims to make sure complaints are handled best way possible 
   6. after sales service

      Nota:

      • gives customers opportunity to ask questions about their purchase 
4. social responsibility
   1. provide people with a service they want

      Nota:

      • Eg a local government might aim to provide children with the best education at school