Small Business
It is usually owned one person (sole trader). A small business usually has less than 50 people. It is usually in a local place e.g. small/medium shops, tradesmen e.g. electrician, hairdressers and computer trainers.
Medium size business
It usually operates on a local or national level. A medium size business usually employs 50 to 250 people. It can grow if there are consumer’s e.g. theatres, national car hire companies and manufactures.
Large business
It usually has outlets in more than one city and in more than more countries. It usually employs over 250 people e.g. Car manufactures-Ford, retail food outlets-Safeway, oil companies-Esso
Local business
Local business will only provide goods over services in a small area. Some examples are small offices e.g. lawyers, video shops, bakeries, dentists and garages.
National business
National businesses operate on a larger scale (the whole country). They usually have household’s names or logos easily recognised. They are large in size and have many branches e.g. boots the chemist, sports division, HMV and abbey national.
Multi-national businesses
Multi-national businesses operate world wide. They also are easily recognised by the household name and logos. Some examples are Ford, Burger King, Esso, McDonalds.
Wednesday 24 January 2007
Unit 1 Revision - Key Terms
Durable and non-durable goods
Durable goods are when things last a long time e.g. cars, washing machines
Non-durable goods are things that run out regularly e.g. batteries, food
Functions of a business
Human resources - recruitment, training
Operations - making the product
Administration - office work, memos, paperwork
Finance - accounts, budgets, wages
Marketing - selling the product, customer needs
Private sector
Is owned by partners or partnerships
Primary, secondary, tertiary
Primary= raw materials, farming
Secondary= factories, making things
Tertiary= selling things made, office work
Interdependence
Rely on other people to supply them with the goods they sell
Aims
Provide a good service
Make a profit
Survive/ Help the cause
Stakeholders
Someone with a financial or/ interest in the business
Mission statement
The outlines of what the business want to achieve
Sole traders
They own their own business
Partnerships
2-20 people come together on a business
Franchise
When a successful business supplies someone who owns a shop with training and supplies for another one of their shops
Tall and flat structures
Tall has more levels of management than a flat structure e.g. army different regiments
Dentist receptionist dentist
Span of control
How many people report to one another e.g. teacher to head of department to head of school?
Line and lateral relationships
Is when you report to someone or they report to you it’s a line relationship
ICT software used in a business
Why they use things like memos, faxes, computers, power points
International business
A business that is known all over the world e.g. Nike, Armani
National business
A business only known in certain countries e.g. car phone warehouse, HMV
A local business
A business that only has one or two shops e.g. RSmcalls, barrats
Market-led
When a business finds out what the customer wants before they make it
Durable goods are when things last a long time e.g. cars, washing machines
Non-durable goods are things that run out regularly e.g. batteries, food
Functions of a business
Human resources - recruitment, training
Operations - making the product
Administration - office work, memos, paperwork
Finance - accounts, budgets, wages
Marketing - selling the product, customer needs
Private sector
Is owned by partners or partnerships
Primary, secondary, tertiary
Primary= raw materials, farming
Secondary= factories, making things
Tertiary= selling things made, office work
Interdependence
Rely on other people to supply them with the goods they sell
Aims
Provide a good service
Make a profit
Survive/ Help the cause
Stakeholders
Someone with a financial or/ interest in the business
Mission statement
The outlines of what the business want to achieve
Sole traders
They own their own business
Partnerships
2-20 people come together on a business
Franchise
When a successful business supplies someone who owns a shop with training and supplies for another one of their shops
Tall and flat structures
Tall has more levels of management than a flat structure e.g. army different regiments
Dentist receptionist dentist
Span of control
How many people report to one another e.g. teacher to head of department to head of school?
Line and lateral relationships
Is when you report to someone or they report to you it’s a line relationship
ICT software used in a business
Why they use things like memos, faxes, computers, power points
International business
A business that is known all over the world e.g. Nike, Armani
National business
A business only known in certain countries e.g. car phone warehouse, HMV
A local business
A business that only has one or two shops e.g. RSmcalls, barrats
Market-led
When a business finds out what the customer wants before they make it
More Business Sector Information
Business Revision
Private Sector
Owned By = Private Individuals/Share Holders
Purpose = to provide goods and services to consumers at a price
Aims Include = Make a profit provide a quality produce
Survival = only Possible if a profit is made-it must made more money than it spends
Finance = Owners Loans Creditors
Examples = Local Newsagents Asda
Public Services
Owned By =Government-Local or Central
Purpose = To provide essential services
Aims Included = To Breakeven utilise assets effectively
Survival =Depends on government policy
Finance = Local or central government
Examples = Health service, Police and Education
Voluntary Groups- charities
Owned by = Not Owned By Any individual
Purpose = to help a specific cause or purpose
Aims include = Alleviate suffering provide expertise raise awareness
Survival= If costs are not greater than incomes – grants, fundraising events (breakdown)
Finance= Public grants eg lottery
Examples= Oxfam Red Cross RSPCA
Private Sector
Owned By = Private Individuals/Share Holders
Purpose = to provide goods and services to consumers at a price
Aims Include = Make a profit provide a quality produce
Survival = only Possible if a profit is made-it must made more money than it spends
Finance = Owners Loans Creditors
Examples = Local Newsagents Asda
Public Services
Owned By =Government-Local or Central
Purpose = To provide essential services
Aims Included = To Breakeven utilise assets effectively
Survival =Depends on government policy
Finance = Local or central government
Examples = Health service, Police and Education
Voluntary Groups- charities
Owned by = Not Owned By Any individual
Purpose = to help a specific cause or purpose
Aims include = Alleviate suffering provide expertise raise awareness
Survival= If costs are not greater than incomes – grants, fundraising events (breakdown)
Finance= Public grants eg lottery
Examples= Oxfam Red Cross RSPCA
Aims by Sector
· Public Sector Aims:
· To Provide A Service
· To keep within budget to survive
· Can grow by increasing number of services
· Can be more efficient by cutting costs.
· To increase market share by attracting more users of services
· To improve quality by improving better services
· Examples of Public Sectors: Local Libraries, BBC + parks
· Voluntary Sector Aims
· To Help Others
· To Raise Funds they must keep within budget to survive
· Can grow by attracting more helpers/providing services
· Can be more efficient by keeping costs down
· Can increase market share by attracting more supporters and to raise awareness
· Private sector aims (Sole Trader)
· Small firm owned by 1 person
· Main aim is to survive
· Must make a profit
· Gain satisfaction from funding a quality product
· May want to make business small so owner can keep control
· Private Sector Aims (Partnership)
· owned by 2-20 people
· main aim is to make a profit to survive
· want to provide quality produces quality products at competitive price
· May want t keep business small so partners can keep control
· To Provide A Service
· To keep within budget to survive
· Can grow by increasing number of services
· Can be more efficient by cutting costs.
· To increase market share by attracting more users of services
· To improve quality by improving better services
· Examples of Public Sectors: Local Libraries, BBC + parks
· Voluntary Sector Aims
· To Help Others
· To Raise Funds they must keep within budget to survive
· Can grow by attracting more helpers/providing services
· Can be more efficient by keeping costs down
· Can increase market share by attracting more supporters and to raise awareness
· Private sector aims (Sole Trader)
· Small firm owned by 1 person
· Main aim is to survive
· Must make a profit
· Gain satisfaction from funding a quality product
· May want to make business small so owner can keep control
· Private Sector Aims (Partnership)
· owned by 2-20 people
· main aim is to make a profit to survive
· want to provide quality produces quality products at competitive price
· May want t keep business small so partners can keep control
Goods and services
Goods
Goods are things that all people can use in the comfort of there own home and use by there selfs there are examples of durables goods an non durable goods below.
Durable goods-is an object that will last up too several years an still be working all the time e.g cars, computers, televisions and wardropes.
Non durable goods-non durable goods are thing that might only last up to a year or even less like 3 months things like this can be tooth brushes, food juice and
Services
Services are things you can go out an buy or be payed for to be done .eg hairdressers, joiners, electrition and salons for nails an tan.
Goods are things that all people can use in the comfort of there own home and use by there selfs there are examples of durables goods an non durable goods below.
Durable goods-is an object that will last up too several years an still be working all the time e.g cars, computers, televisions and wardropes.
Non durable goods-non durable goods are thing that might only last up to a year or even less like 3 months things like this can be tooth brushes, food juice and
Services
Services are things you can go out an buy or be payed for to be done .eg hairdressers, joiners, electrition and salons for nails an tan.
What is a Business?
A business is an organisation that provides goods and services.
The common features of a business is
A name: Marks and Spencer plc
An Aim: provide a wide range of good value products throughout the country
Rules: set opening times, wage scales, common standards.
Resources: buildings, shelves, computers, people
The common features of a business is
A name: Marks and Spencer plc
An Aim: provide a wide range of good value products throughout the country
Rules: set opening times, wage scales, common standards.
Resources: buildings, shelves, computers, people
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