Академический Документы
Профессиональный Документы
Культура Документы
uk
www.igcsebusiness.co.uk
An aim or a target to work
towards.
www.igcsebusiness.co.uk
Businesses are started by
either People
or Governments
for different reasons and purposes.
What do you think are possible reasons for starting a
business?
www.igcsebusiness.co.uk
The most common objectives are:
1. To make a profit
2. www.igcsebusiness.co.uk
To increase added value
3. To expand the business
4. To achieve business survival
5. To provide a service to the community
www.igcsebusiness.co.uk
Businesses owned by private individuals
rather than the government are run to
make profits.
www.igcsebusiness.co.uk
The owners will each take a share of the profits.
www.igcsebusiness.co.uk
Owners and managers of a business may aim for growth in
the size for a number of reasons:
Employees Managers
www.igcsebusiness.co.uk
Higher job security Higher salaries and status
Owners
Opens up new possibilities and
spread the risk by moving into new
products and markets
Enterprise
Higher market share from Cost advantages from the
growth in sales economies of scale (Ch 5)
www.igcsebusiness.co.uk
Growth will only be achieved if the businesss consumers are satisfied
with the products or services being provided.
www.igcsebusiness.co.uk
www.igcsebusiness.co.uk
A firm is always trying to survive
www.igcsebusiness.co.uk
Possible threats to the business:
A firm recently launching in the business
Economy is in financial trouble (recession)
New competition in the market
www.igcsebusiness.co.uk
In some countries, important businesses are
owned by the government.
www.igcsebusiness.co.uk
The main aim of these businesses is focused
towards providing a service rather than
making profit.
For example, water or electricity supply,
transportation, educational institutions, public
hospitals.
www.igcsebusiness.co.uk
Businesses are not as Consumers
clear-cut as this and are
usually aiming to satisfy Local Community
more than one party as
shown belowwww.igcsebusiness.co.ukWorkers
Directors
Growth
Jobs
Environment/Pollution/J
obs
www.igcsebusiness.co.uk
May change over time
Value
Added
Growth Survivial
Provide
Business
www.igcsebusiness.co.uk
Profits Objectives
a Service
Interested
groups can
have
different
Owners objectives Workers
Community Managers
www.igcsebusiness.co.uk
Conflict can occur
Owner Management
The Community
www.igcsebusiness.co.uk
Government
Customers Employees
www.igcsebusiness.co.uk
1. Owners www.igcsebusiness.co.uk
2. Workers
3. Managers
4. Consumers
5. Government
6. The community as a whole
www.igcsebusiness.co.uk
They
Are the risk-takers!
Put capital up (during setup and expansion)
www.igcsebusiness.co.uk
Take a share of profits if there is success
If the business fails, they will lose the money they
invested.
www.igcsebusiness.co.uk
They
Are the employees!
Follow management regulations.
www.igcsebusiness.co.uk
Need training for the work.
Employed full or part-time or temporarily or permanent.
www.igcsebusiness.co.uk
They
Are also employees!
Control the work of others.
www.igcsebusiness.co.uk
Make important decisions.
If a decision is successful, it could lead to great results.
If a bad decision is made, it could lead to failure.
www.igcsebusiness.co.uk
They
Are responsible for the economy of the country.
They pass laws to protect workers and consumers.
www.igcsebusiness.co.uk
www.igcsebusiness.co.uk
They
Are greatly affected by business activity.
Businesses provide jobs, allowing higher standards of
www.igcsebusiness.co.uk
living.
www.igcsebusiness.co.uk
www.igcsebusiness.co.uk
Owners Workers
www.igcsebusiness.co.uk
Stakeholders
Customers Government
Community
Employment
Goods and Services Taxes
Quality Increasing National Output
Jobs
Good Value
Clean environment
Safe products
www.igcsebusiness.co.uk
1. Mirex is a large company that sells a range of insurance
policies to businesses and the general public. The market
for insurance is very competitive and Mirex are always
lookingwww.igcsebusiness.co.uk
for ways to cut their costs. Recently they have
invested heavily in new technology.
2 marks
www.igcsebusiness.co.uk
A stakeholder is any person or group with a
direct interest in the performance and
activities of a business. For example, owners,
managers,www.igcsebusiness.co.uk
workers, government, customers
and the local community.
www.igcsebusiness.co.uk
1. The management of Wang Electricals are thinking of expanding
their business into another country. Two alternative methods are
being considered, namely either to set up a franchise or to
operate a joint venture.
www.igcsebusiness.co.uk
The stakeholders of Wang Electricals are watching the expansion
plans with interest.
www.igcsebusiness.co.uk
a. Two stakeholder groups:
Owners management employees-government customers
community
www.igcsebusiness.co.uk
3. J.T. Enterprises is a large private sector business that owns a
number of farms in country A. The business breeds a variety of
animals such as cows and sheep as well as growing crops. They
employ many workers and the business is successful and
profitable.
www.igcsebusiness.co.uk
Using an example from J.T. Enterprises explain what is meant by
added value. 3 marks
www.igcsebusiness.co.uk
3) Value added is the difference between the
selling price of a product or service and the
cost of bought in materials and components.
www.igcsebusiness.co.uk
An example is the difference between the
selling price of cows and sheep and the cost
of rearing them.
www.igcsebusiness.co.uk
4. Isaiah had been to college to study business. His tutors told him
that added value was very important if a business was to be
successful and profitable. Table 2 shows a task given to Isaiah by
his tutors.
a. Complete Table 2 above by filling in the two gaps for the restaurant
business.
2 marks
www.igcsebusiness.co.uk
Booklet Past Papers: Model Answers
www.igcsebusiness.co.uk
Booklet Past Papers: Model Answers
c. Do you think that if Isaiah adds value then his business will
be successful and profitable? Justify your answer.
www.igcsebusiness.co.uk
What is the point of increasing added value?
www.igcsebusiness.co.uk
Value Sells good
Output Earn higher
added at a higher
rises profits
means price
www.igcsebusiness.co.uk