Understanding Business

Understanding Business

1. Sectors of Industry

   • Primary
     • take raw materials from the ground eg farming, fishing, mining
   • Tertiary
     • provide a service eg hairdressers, hotel
   • Secondary
     • use raw materials and make something with them eg builder, cake baker

2. Types of Businesses

   • Sole Trader
     • Owned and controlled by one person All the profits kept by owner No one to share responsibility 
   • Parternership
     • Owned by 2-20 people Ran by partners  Workload can be shared Profit needs to be split
   • Private Limited Companies
     • Owned by shareholders Ran by Board of Directors eg Fly High Travel Ltd

3. Sectors of the Economy

   • Private Sector
     • owned by individuals
     • aim to make a profit
   • Public Sector
     • owned by the government on behalf of taxpayer
     • funded by taxes
     • eg hospitals, schools

4. Objectives

   • an objective is an AIM, a TARGET or a GOAL the business wants to acheive
     • survival
       • to continue trading
         • *this is the first objective a business has 
     • profit
       • more income than costs
         • *Main objective of any business in the private sector 
     • customer satisfaction
       • to make customers happy, encourage repeat custom
       • high quality
       • trained employees
         • employees who are knowledgeable about products=able to handle queeries=happy customers
       • customer care strategy
       • customer complaints procedure
         • aims to make sure complaints are handled best way possible 
       • after sales service
         • gives customers opportunity to ask questions about their purchase 
     • social responsibility
       • provide people with a service they want
         • Eg a local government might aim to provide children with the best education at school
   • help businesses FOCUS on what its doing