THE ROLE OF BUSINESS

• Wants and needs
• Goods and services
• Durable and non-durable
• Factors of Production
• Creation of wealth - adding value

SECTORS OF INDUSTRY

• Primary
• Secondary
• Tertiary

TYPES OF BUSINESS ORGANISATION

• Private
• Public
• Third

PRIVATE

• Sole traders
• Partnerships
• Limited Companies

PUBLIC

• Parliament
• Scottish Government
• Local Authorities

THIRD

• Non profit making
• Social enteprises
• Charities

CUSTOMER SATISFACTION

• High quality
• Trained employees
• Customer care strategy
• Customer complaint procedure
• After sales service

OBJECTIVES

• Survival
• Profit maximisation
• Provision of an excellent service
• Customer satisfaction
• Social responsibility

EXTERNAL INFLUENCES ON A BUSINESS

• Political
• Economic
• Social
• Technological
• Environmental and Competitive

INTERNAL INFLUENCES ON A BUSINESS

• Financial
• Human resources
• Current technology

STAKEHOLDERS

• Owners/shareholders
• Employees
• Banks/lenders
• Customers
• Suppliers and Local/national g/ment

MARKETING

MARKETING TERMS

• Market leader
• Market share
• Market growth
• Market segmentation/target market
• Niche marketing

ROLE OF MARKETING

• Knowing the market
• Know the customer
• Know the product/service

MARKETING MIX

• Product
• Place
• Price
• Promotion

KEY TERMS

• Product life cycle
• Branding
• Extension strategies

PRICING STRATEGIES

• Low price
• High price
• Promotional pricing
• Cost-plus pricing
• Psychological pricing

ADVERTISING

• Websites
• QR codes
• Social networking
• Apps
• Text messaging

MARKET RESEARCH

• Field
• Desk

METHODS

• Interview
• Focus group
• Survey
• Hall test
• Observation

OPERATIONS

PURCHASING MIX

• Cost of materials
• Quality of raw materials
• Lead time/delivery time
• Quantity of materials needed
• Location of supplier

STOCK MANAGEMENT

• Understocking
• Overstocking

METHODS OF PRODUCTION

• Job
• Batch
• Flow
• Labour vs capital intensive

QUALITY

• High quality raw materials
• Trained staff
• Well maintained equipment
• Quality control
• Quality management

HUMAN RESOURCES

ROLE OF HRM

• Recruitment and selection
• Motivating and training
• Safe working conditions
• Promoting good working relationships
• Ensuring employees are paid correctly

KEY TERMS

• Job analysis
• Job description
• Person specification
• Internal and external advertising

TRAINING

• Induction
• On the job
• Off the job

WORKING PRACTICES

• Part time
• Temporary
• Homeworking/teleworking
• Flexitime
• Job share

INDUSTRIAL ACTION

• Strike
• Work to rule
• Sit in
• Go slow
• Overtime ban

LEGISLATION

• Equality Act
• National Minimum Wage Act
• Health and Safety at Work Act