1. Business Objective
1.1. This is an aim or a target to work towards
1.1.1. ·to make profit
1.1.1.1. Profit are needed to pay a return to the owners of the business
1.1.1.2. Without any profit at all, the owners are likely to close the business
1.1.2. ·to increase added value
1.1.3. ·growth
1.1.3.1. ·to make jobs more secure if the business is larger
1.1.3.2. ·to expand the business
1.1.3.3. ·to open up new possibilities and help to spread the risks of the business
1.1.3.4. ·to obtain economies of scale from business expansion
1.1.4. ·to achieve business survival
1.1.5. ·to provide a service to the community
2. Business Activity
2.1. Why needed?
2.1.1. ·Unlimited wants
2.1.2. ·The four factors of production are in limited supply
2.1.3. ·Need to make choices through business activity
2.1.4. ·
2.1.4.1. ·Specialisation improve the efficiency
2.2. One thing in commom
2.2.1. They combine factors of production to make products which satisfy people's want
2.2.1.1. Products, goods and services which are needed to satisfy the needs & wants
2.2.1.2. Employ people and pay them to allow them to consume products made by other people
3. Value added
3.1. The diiference between the selling price of a product or servive and the cost of bought in materials and componnents
3.1.1. Higher value added mean that the value of the firm's output rises
3.1.2. HOW can business increase value add
3.1.2.1. ·Provide better service
3.1.2.2. ·Well-know brand
3.1.2.3. ·More and better promotions
3.1.2.4. ·Better quality
3.1.2.5. ·Upgrade of products
3.1.2.6. ·Improve the surrounding of storefront
4. The economic problem: Needs and Wants
4.1. your needs—those things you think necessary for living
4.1.1. Task
4.1.2. Prerequisites
4.2. your wants—things you would like to have, but which is not essential for living(Unlimited)
4.2.1. Task
4.2.2. Prerequisites
4.3. ECNOMIC PROBLEM results from there being unlimited wants but limited resources to produce the goods and survices to satisfy those wants →Unlimited wants + Limited resources = SCARCITY
4.4. Factors of production—the resources needed to produce goods or services
4.4.1. ·Land —It is used to cover all of the nature resources.(fields,forest,metals,mineral resouces)
4.4.2. ·Labour—This is the efforts of people needed to make products
4.4.3. ·Capital—This is th finance, machinery and equipment needed for maufactures of goods
4.4.4. ·Enterprise—The skill and risk-taking ability of a person who brings resources and other factors of production together properly to produce a good or service.People like this are called enterprise
5. Business Shakeholders & Their main objectives
5.1. A SHAKEHOLDER is any person or group with a direct interest in the performance and activities of a business
5.1.1. Owners: Profits, return on capital
5.1.2. Managers: Salaries, status ,control
5.1.3. Workers: Income, job secuities, satisfying works
5.1.4. Community: Jobs, clean environment, safe products
5.1.5. Customers: Goods and services qualities, good values
5.1.6. Government: Employment ,taxes, increasing national, output
6. Limited resources : the need to choose
6.1. Opportunity cost—opportunity cost is the next best alterntive given up by choosing another item
6.2. Everybody makes choices,in which we need to consider carefully the opportunity cost to make sure it is not worth more to us than the item we are buying
6.3. Making the best use of limited resources:SPECIALIZATION
6.3.1. Division of labou(specialization)—it is when the production process is split up into different tasks an each worker performs one of these tasks
6.3.1.1. Advantages:
6.3.1.1.1. ·Workers are trained in one task and specializa in this, efficiency and output can be increase
6.3.1.1.2. ·It can waste some time to move one workbench to another
6.3.1.2. Disadvantages
6.3.1.2.1. ·Workers will be boring if they just do one job, efficiency may fall
6.3.1.2.2. ·This is a chain of production. Productions might be stopped if a worker is absent and nobody can do instead