This section of my summarised notes covers the topic operations and project management in CIE 9609 Business Studies.
These are simple, stylised note pack which are perfect for AS business studies revision. They cover all the topics in the CIE syllabus with needed detail to ensure you get the per...
Enterprise
What do businesses do?
- Identify needs of consumers and purchase factors of production to produce goods/services to
satisfy these needs
Goods: physical and tangible goods sold to the general public e.g. food and drinks
Services: non-tangible products sold to the general public e.g. hotels, insurance
Factors of Production:
Land: all natural resources (renewable and non-renewable)
e.g. coal, fish, water, wood, metal
Labour: all human effort available for production; manual and skilled workers
Capital: not just finance needed bu all human made resources of production
e.g. machinery, tables, combs
Enterprise: the entrepreneur that takes the risk of setting up a business and uses the factors of
production to product goods and services to make a profit. It provides a managing, decision-making
and coordination role.
e.g. Elon Musk, Steve Jobs
Adding Value
All businesses aim to sell products at a higher price than cost of goods sold;
Adding Value: The process of increasing the worth or value of resources by working on them.
NB: Value added is not profit made as part of the value goes towards other business expenses
Ways of Adding value:
• painting/colouring • Limited edition • Speed
• Increasing quality • Packing • Accessories
• Printing • USP • Reduction in waste
• Change material • Brand • Cost-cutting
• Transport worldwide • Better customer service
Opportunity Cost
- There aren’t enough factors of production to satisfy all our needs and wants because we are
limited by the resources - there are scarce
- Consumers must choose which method is best to produce with the scare resources
Opportunity Cost: what has to be given up by not being chosen; the next best alternative sacrifice
SxTeri Page 1
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 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 SxTeri. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.49. You're not tied to anything after your purchase.
