F291

F291

1. Added Value

   • Sale Price - Cost of Producing
   • Value can be added by
     • Building a Brand
     • Delivering Excellent Service
     • Offering Convenience
     • Product Features and Benefits
   • Benefits of Adding Value
     • Charge a Higher Price
     • Focus More on a Target Segment
     • Protection From Competitors
     • Creating a Point of Difference from Competitors

2. Opportunity Cost

   • The cost of an economic choice in terms of the next best alternative foregone.
     • Decision making always involves an opportunity cost.
       • Decisions have to be made based on priorities.

3. Factors of Production

   • Capital
     • Machines used to produce goods
   • Enterprise
     • Ideas of business owners
       • Organise Land, Labour & Capital
   • Land
     • Raw materials
       • Fish Stocks
       • Oil
       • Mineral Wealth
     • Infrastructure
     • Offices & Factories
   • Labour
     • Physical and Mental Workforce

4. Stakeholders

   • Any Individual or group who affect or are affected by a firms operations.
     • Customers
     • Government
     • Employees
     • Suppliers
     • Creditors
     • Managers
     • Shareholders
     • Directors
     • Consumers
     • Local Communities

5. Economic Sectors

   • Primary
     • Raw Materials
   • Secondary
     • Manufacturers
   • Tertiary
     • Retailers and Service Providers