Business Features PDF

17-Sep-24  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. In this topic you will learn about Purposes Supply of produc...

17-Sep-24  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. In this topic you will learn about Purposes Supply of products or se ices, di erence between for- pro t and not-for pro t businesses Sectors Prima , seconda , te ia , quaterna Scope of business activities Local, national, international Size Micro , small and medium enterprises (SME’s), large Reasons for success How these di er depending on the type of business (pro t or non-pro t), and its aims and objectives, e.g. clarity of vision, innovative products or processes  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. Purposes What do businesses do? Supply of products Products can be goods or se ices Goods are tangible i.e. they can be touched such as cars or clothes Se ices are nontangible i.e. they can not be touched such as insurance Businesses can supply to other businesses or to private customers B2B is business to business e.g. a farmer sells potatoes to a crisp manufacturer B2C is business to customer e.g. a farmer has a market stall selling vegetables  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. Business activity can be classi ed into 4 sectors: Prima sector Businesses that extract natural resources that can then be used by others to produce resources e.g. farming, shing and extracting minerals Seconda sector Businesses that turn raw materials into nished goods or components. Value is added through the manufacturing process Te ia sector Businesses that provide se ices to individuals (B2C) or other businesses (B2B) e.g. banking, retail and telecommunications Quaterna sector Businesses, within the te ia sector, that specialise in knowledge e.g. consultancy, research and development, libraries and computer programming  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. Scope of business activity refers to the scale on which it operates Local – sells within a small geographical area e.g. a town or county National – sells across the whole of a count e.g. has stores across the UK International – sells in multiple countries e.g. across Europe  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. Size of a business refers to the number of employees Micro – up to 9 sta Small and medium enterprises (SMEs) Small – between 10 and 49 sta Medium – between 50 and 249 sta Large – more than 250 sta  Features of a business Learning Objective To be able to analyse the features of a variety of business organisations. Small and medium size enterprises (SMEs) De ned by the number of employees, turnover and net wo h shown on a balance sheet e European Union classi cation of business size is shown Noin of the box below Turnover in Net wo h employees Euros shown on balance sheet Medium