Business Studies Chap.1

inputs

The resources needed to produce goods and services

1. raw materials
2. labour
3. money
4. owners/directors

outputs

goods and services

constraints

restrictions on what a business can do:
1. competition (from other firms)
2. Environment
3. Legislation (i.e. health and safety laws.
4. The economy (i.e. - a recession or a boom period)

Functions of a business

1.Finance
2. Production
3. Marketing
4. Human Resources

Finance

makes sure company collects money owed to it, that company pays its bills, sets budgets

Production

Produces the goods:
1. efficiently using up-to-date methods
2. cuts waste
3. keeps up quality

Marketing

1. market research -finds out what customers want
2. adding value
3. informing customers
4. creating desire

Human Resource Management

1. wellbeing of employees
2. hiring
3. training & motivating
4. letting employees go
5. making sure business in line with laws protecting workers

Adding value

what a business adds to a product to convince customers to pay more than the cost of inputs
1. manufacturing
2. image

types of product

1. consumer non-durable goods
2. consumer durable goods
3. industrial goods
4. services

consumer non-durable goods

a product that can only be used once - i.e. food, drink, petrol

consumer durable goods

a product that can be used more than once - i.e. cars, furniture

industrial goods

products bought by businesses, used to produce goods - machines, equipment etc.

services

all purchases that do not involve something you can touch - holidays, banking, insurance,
Some are provided by the government - policing, defence etc.

Other useful purposes (functions) of business

1. employs pople
2. source of revenue (money) for:
owners of business
the government (taxes)
3. helps the balance of payments - sells to other countries bringing money into the UK