1. create new products
2. co-operative group operates a range of businesses like retailing agriculture, travel services and banking and funeral
3. The purpose of a business
3.1. turn inputs and resources into outputs
3.1.1. goods, services and products
3.1.1.1. product is a general term for both goods and services
3.1.1.2. service is a intangible item
3.1.1.3. goods is a physical product
3.1.2. inputs and outputs
3.1.2.1. inputs include:
3.1.2.1.1. people
3.1.2.1.2. land and natural resources
3.1.2.1.3. finance
3.1.2.1.4. materials and components
3.1.2.1.5. capital requirement
3.1.2.2. adding value
3.1.2.2.1. the transformation process of the inputs to outputs
3.1.2.3. outputs include:
3.1.2.3.1. goods
3.1.2.3.2. services
3.1.2.3.3. waster products
3.2. Create employment
3.3. enhance a country's repuation
3.4. to create wealth
3.5. types of businesses
3.5.1. primary, secondary and tertiary
3.5.1.1. primary is businesses like:
3.5.1.1.1. oil and gas extraction
3.5.1.1.2. agriculture
3.5.1.1.3. forestry
3.5.1.1.4. fishing
3.5.1.1.5. mining
3.5.1.2. secondary is businesses like:
3.5.1.2.1. supply of electricity, gas and water
3.5.1.2.2. manufacturing
3.5.1.2.3. construction
3.5.1.3. tertiary businesses are like:
3.5.1.3.1. supply of services
3.5.1.3.2. hotels
3.5.1.3.3. catering
3.5.1.3.4. transport
3.5.1.3.5. education
3.5.1.3.6. health
3.5.2. gross domestic product (GDP)
3.5.2.1. measures the total value of the production of an economy. usually over one year
3.5.2.2. quarrying
4. communication and plans of businesses
4.1. mission statements, aims and objectives
4.1.1. aims
4.1.1.1. aims are long term plans of the business from which its corporate objectives are derived
4.1.1.1.1. used to provide guidance for setting other objectives
4.1.1.1.2. relate to the whole business
4.1.1.1.3. set by senior employees
4.1.2. mission statments
4.1.2.1. mission statements are set out to plan the businesses overall purpose to direct and stimulate the entire organisation
4.1.3. objectives
4.1.3.1. objectives are medium length goals established to coordinate the business
4.1.3.1.1. SMART
4.1.3.2. common business objectives
4.1.3.2.1. profit and profit maximisation
4.1.3.2.2. growth
4.1.3.2.3. cash flow
4.1.3.2.4. survival
4.1.3.2.5. diversification
4.1.4. why set objectives
4.1.4.1. motivation
4.1.4.2. stakeholders
4.1.4.2.1. individuals or a group of people who have an interest in the business
4.1.4.3. coordination
4.1.4.4. for the management
5. types of business forms
5.1. private sector businesses
5.1.1. owned by stakeholders
5.1.2. types of private sector businesses include:
5.1.2.1. sole traders
5.1.2.1.1. owned by one person, who can have employees
5.1.2.1.2. high level of self-discipline
5.1.2.1.3. must be confident and able to take risks
5.1.2.1.4. businesses like window cleaners, decorators and hairdressers
5.1.2.1.5. disadvantages:
5.1.2.1.6. advantages
5.1.2.2. companies
5.1.2.2.1. have to complete documentation
5.1.2.2.2. owned by shareholders
5.1.2.2.3. limited liability
5.1.2.2.4. publicity due to being of their size and importance
5.1.2.2.5. two types of company:
5.2. public sector businesses
5.2.1. three main elements of a public sector:
5.2.1.1. public corporations- enterprises owned by state by offering products for sale to the public and private sector businesses; e.g channel 4 television
5.2.1.2. municipal services- services offered by local governments and councils; e.g libraries and leisure centres
5.2.1.3. public services- organisations that provide services to the whole nation; e.g NHS
5.2.2. ownder by national or local government
5.2.3. not-for-profit businesses
5.2.4. mutual businesses
6. shares and share prices
6.1. role of shareholders
6.1.1. influence decision making
6.1.2. buy shares
6.1.3. invest into the business
6.1.4. receive dividends
6.2. influences on share prices
6.2.1. companies performance
6.2.2. the business environment in which it trades
7. external factors
7.1. factors that the business can not control
7.1.1. include things like PESTELC
7.1.1.1. Political
7.1.1.2. economic
7.1.1.3. social
7.1.1.3.1. fair trade- is a social movement that exists to promote improved trading terms and living conditions for producers of products in less-developed countries
7.1.1.4. technological
7.1.1.5. environmental
7.1.1.5.1. sustainable production- when the supply of a product does not impose costs on future generations by, for example, depleting non-renewable resources
7.1.1.6. legal
7.1.1.7. competitors
7.2. market conditions- the number of features of a market such as the level of sales, the rate of change and the strength of competitors
7.3. demand and income
7.3.1. incomes influence demand
7.3.1.1. incomes are determined by the level of a nations gross domestic product, in that a rise in GDP will increase the incomes by many consumers
7.3.1.2. real incomes are the incomes that are adjusted for the rate of inflation to show changes in purchasing power
7.3.1.3. interest rates is the price of borrowed money
7.3.1.3.1. if interest rates rise demand will fall due to having lower disposable income
7.3.1.3.2. if interest rates rise: