Understanding Business

Description

SQA Business Mind Map on Understanding Business, created by Lea Miller on 06/11/2017.
Lea Miller
Mind Map by Lea Miller, updated more than 1 year ago
Lea Miller
Created by Lea Miller over 6 years ago
17
1

Resource summary

Understanding Business
  1. The Business Environment
    1. The Role of Business
      1. Identify Needs and Wants

        Annotations:

        • Businesses identify customers' needs and wants by conducting market research.
        1. Needs

          Annotations:

          • Needs are essential for us to be able to live and include food, water, clothing, and shelter.
          1. Wants

            Annotations:

            • Wants are things that we would like to have, but can live without. Examples: a mobile phone, TV, ipod, holidays.
          2. Provide Products

            Annotations:

            • Businesses produce goods and services to help us satisfy our needs and wants.
            • We satisfy our needs and wants by consuming (using up) the different goods and services that businesses produce.
            1. Types of Products
              1. Goods

                Annotations:

                • Goods are tangible - things we can see, touch and pick up. Examples: DVDs, chocolate bar, clothes, and newspaper
                1. Durable

                  Annotations:

                  • Durable goods are goods that can be used more than once. Example: washing machine, TV, mobile phone.
                  1. Non-durable

                    Annotations:

                    • Non-durable goods are goods that can NOT be used more than once. Example: toilet paper, plaster, food
                  2. Services

                    Annotations:

                    • Services are intangible - things we can NOT see, touch, or pick up. Examples: getting a haircut, getting a mechanic to fix car.
                  3. Factors of Production
                    1. Capital

                      Annotations:

                      • The man-made resources that are needed to make a product. Examples: machines, tools, and money.
                      1. Enterprise

                        Annotations:

                        • Enterprise is combining all factors of production by the entrepreneur.
                        1. Entrepreneur

                          Annotations:

                          • Entrepreneur is the person who combines the factors of production together and who is willing to take the risk to see whether or not his or her idea will work.
                          • Some skills and qualities of Entrepreneurs: have confidence, problem-solving skills, motivation, people skills, and determination.
                        2. Land

                          Annotations:

                          • Land - the natural resources of the world. Example: water, air, and plants
                          1. Labour

                            Annotations:

                            • Labour - The people employed by a business (the workforce) to make the product.
                          2. Wealth Creation

                            Annotations:

                            • Wealth is created by a business by adding value to a product as it goes through the production process.
                          3. Sectors of Industry

                            Annotations:

                            • Businesses belong to different sectors of industry.
                            1. Primary

                              Annotations:

                              • Businesses in this sector take raw materials from the ground. Example: agriculture and farming, fishing, mining
                              1. Secondary

                                Annotations:

                                • Businesses in this sector use raw materials and make something with them. Examples: a car manufacturer, a builder, a cake baker.
                                1. Tertiary

                                  Annotations:

                                  • Businesses in this sector provide a service. Examples: A fitness instructor, a hotel, a supermarket.
                              2. Types of Business Organisations
                                1. Sectors of the Economy
                                  1. Private
                                    1. Sole traders
                                      1. Partnerships
                                        1. Private Limited Companies
                                        2. Public
                                          1. National Government
                                            1. Local government organisations
                                            2. Third
                                              1. Non-profit making organisations
                                                1. Social Enterprises
                                            3. Customer Satisfaction
                                              1. Ways (How?)
                                                1. High quality good/service
                                                  1. Train employees
                                                    1. Customer care strategy
                                                      1. Complaints procedure
                                                        1. After-sale service
                                                        2. Why it's Important
                                                          1. customer loyalty
                                                            1. good reputation
                                                              1. maximise sales/profit
                                                                1. increase market share
                                                              2. Objectives
                                                                1. Survival
                                                                  1. Profit
                                                                    1. Provision of a service
                                                                      1. Customer Satisfaction
                                                                        1. Enterprise
                                                                          1. Social Responsibility
                                                                            1. Market share
                                                                          2. Business Influences
                                                                            1. External Factors (PESTEC)
                                                                              1. Political
                                                                                1. UK Parliament
                                                                                  1. Scottish Government
                                                                                    1. Local government orgs
                                                                                    2. Economic
                                                                                      1. Levels of Employment
                                                                                        1. Recession
                                                                                          1. Interest Rates
                                                                                          2. Social
                                                                                            1. Opinions
                                                                                              1. values / beliefs
                                                                                                1. tastes / trends
                                                                                                2. Technological
                                                                                                  1. Tablet computers
                                                                                                    1. Wireless technology
                                                                                                      1. Web 2.0
                                                                                                        1. Cloud computing
                                                                                                        2. Environmental
                                                                                                          1. Weather / climate
                                                                                                            1. Environmentally friendly
                                                                                                            2. Competitive
                                                                                                              1. more choice
                                                                                                                1. cheaper price
                                                                                                                  1. more special offers
                                                                                                                    1. higher quality
                                                                                                                  2. Internal Factors
                                                                                                                    1. Financial
                                                                                                                      1. Human Resources
                                                                                                                        1. Current Technology
                                                                                                                        2. Stakeholders
                                                                                                                          1. Owners
                                                                                                                            1. Shareholders
                                                                                                                              1. Employees
                                                                                                                                1. Banks
                                                                                                                                  1. Customers
                                                                                                                                    1. Suppliers
                                                                                                                                      1. Local Community
                                                                                                                                        1. Pressure Groups
                                                                                                                                          1. Local government
                                                                                                                                            1. National Government
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