Summary CIE 9609 Business UNIT 1 BUSINESS AND ITS ENVIRONMENT (AS LEVEL NOTES)
61 views 0 purchase
Course
Unit 1 - Business and its environment (9609)
Institution
CIE
Book
Cambridge International as & a Level Business Coursebook with Digital Access (2 Years) [With eBook]
This document provides an intensive walk-through the content related to each syllabus point for UNIT 1 (BUSINESS AND ITS ENVIRONMENT) of the AS-Level of CIE 9609 Business.
Summary of Corporate Planning and Implementation A level cie
Summary of A Level CIE Business strategy
Summary International A level CIE chapter 1 Economic influences
All for this textbook (10)
Written for
A/AS Level
CIE
Business 2016
Unit 1 - Business and its environment (9609)
All documents for this subject (1)
Seller
Follow
zf100
Reviews received
Content preview
☆ U1: BUSINESS AND ITS
ENVIRONMENT -- ENTERPRISE ☆
The nature of business activity
Purpose of business activity
1. Transform inputs → outputs
a. Using the 4 factors of production: land, labour, capital, enterprise
b. Output is any g/s represented by profit
2. Use limited resources (FoP) to produce g/s that meet the n/w of customers
The concept of creating value
- This is the creation of ‘added value’
- This is the difference b/w cost and price
- Increasing this leads to ++ profit
- Each stage of production makes product more valuable
- CV =/= profit: increasing value (is costly, bc involves higher labour, for example) cost
same → more profit
The nature of economic activity, the problem of choice and
opportunity cost
- EA = requires choices b/c resources limited but n/w unlimited → most choose to produce
g/s that appeal to n/w that are more profitable (right now, PPE is most profitable)
- Opportunity cost = the benefit of the next viable option
Business environment is dynamic
- Market constantly evolving - competition, advances, policies, demographic trends
change
- Bus. must adapt or fail.
What a business needs to succeed
- FOMEC
- Finance: capital, cash flow, OC
, - Organisation: choose and combine the rest
- Marketing: consumer satisfaction through engaging experience
- Enterprise: identify market gap, fill it, assess risk and profit
- Coordination: of all of the above
Why many businesses fail early on
- Bad planning/management - business plan, leadership, hiring
- Poor marketing - too much/little hype
- Lack of capital - irregular payments, bad recordkeeping
- Bad organisation - receipts, transactions, deliveries, inventory
- Inability to adapt - financial, entrepreneurial
The role of the entrepreneur
Qualities an entrepreneur is likely to need for success
- Innovation - fill gap with niche
- Commitment - keenness for success
- Multi-skilled - able to assess qualities when hiring other positions
- Leadership - persuasion, motivation
- Confidence - abilities, risk-taking
The role of business enterprise in the development of a
business and a country
- Business
- Growth with efficiency (as outlined in qualities above)
- Country
- Increases employment in/directly
- Economic growth - GDP higher, + income tax, higher living standards → + tax
revenue for government
- Competition - sustains market by encouraging innovation
- Social cohesion lower crime rates, less conflict bc population satisfied
Social enterprise
The range and aims of social enterprises
- Range
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller zf100. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.38. You're not tied to anything after your purchase.
