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What is business?

Posted by Admin on 5-10-2021

There are inputs you put into a business and the business will produce outputs.

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Inputs you could think if you are a chocolate company, then you'll need a farm for your Cocoa Tree to make cocoa to turn that into chocolate that Cocoa Tree where you have your farm that island. You'll need employee labor to start a business then you will need robots. You'll need a factory in order to do this that's called capital and there needs to be an entrepreneur that is organized has ideas. And he's able to take a risk in order to get a reward likely profit and that's called Enterprise these four items land labor Capital Enterprise are known as the factors of production server details on my factors of production article a business.

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Starting a business is so easy. You can start your own business without money or any investment. You just need a Name to start your online business fast.

So business is often as it grows divided up into four sections.

What is business?

These are operations Human Resources. Sometimes called HR marketing. hurting and finance these four divisions of a company Are all sinner's internal factors also they are. Your units for your GCSE business. If you're doing Hua then it will be actually operations if you are free. HR is unit for marketing is unit five and finance is unit 6 if you do other specifications, it will be broken down ever so slightly, but the essence is pretty much the same. So these are all internal to the businesses because the business is in controlling them. However, the business has external factors that affect them coming from outside the business external pressures examples are number one the economy how the economy is faring will affect the business if the economy is not doing very well growth is low. It will affect many businesses. Sometimes it will affect them positively most of the time affect them negatively. You've got inflation.

Exchange rates unemployment.

They will all affect the business exchange rates, you might import your cocoa from abroad so how much the pound is worth will make a big difference to you. Check out my exchange rates articles for more details on that. Also external pressures laws. Sometimes laws are called regulations there set by governments minimum wage if the minimum wage were to increase that will affect how much you pay in labor to your employees and that's a cost of production. So that will affect your costs. Consumer protection, sometimes there are regulations laws that are put in to make sure that goods and services meet a certain quality. Consumer protections are very important, but that extra quality could mean extra costs because you might now have to employ more labor. You might need better capital in order to cover that also need to think you need to be ethical. It's not a law but it's a consideration.

You need to be ethical.

You need to be doing the morally correct FIB for example, should you as a big business should you use fair trade? Business Startup

Business startup

For example, should you use zero-hour contracts?

These are Big considerations check out my article on that one. Okay, so inputs go into a business creates outputs usually come in two forms goods and services. These are both explained very shortly after this stage stay tuned for goods and services whether it's a tangible product. That's a good or an intangible process. That's a service will have an environmental impact and that's another external pressure and duration a business should make for example carbon footprint is now a growing issue within business and the economy. For example, one percent of coffee cups are currently recycled which means 99% of coffee cups are not recycled. This is a big thing for a business to consider. However, they could also use it to their advantage. There is a coffee business called Costa that is now trying to increase the number of coffee cups that it recycles. and that is a form of Marketing so you can use these external pressures to your benefit stay tuned.


We're looking at the outputs that businesses produced they can be Goods or they can be services and it's important to make the distinction between these two things. So good he's a tangible product by tangible. It's a physical thing that you can hold like an iPhone for example, like a toy so an Object to satisfy consumers' needs and ones. That's the definition that you need to know for goods the word consumers if that's confusing you that's someone who buys a good or service from a business just anyone that buys a good or service from a business. So needs and wants needs and wants are different things. We think we need an iPhone. We do not want an iPhone. So knees are like food and water things to Keep Us Alive they are. Actual items. These are supplied by some business's food. For example, you get a supermarket as well as water some companies produce water like Buxton, for example, once iPhone or toys as mentioned before and these are non-essential items. So it's just important to keep the distinction Within These because there are different types of goods opposite of a good is a service is an intangible process.

What do you think of the word intangible you're thinking about the fact that you cannot hold it? You physically cannot hold the car wash after your car's been washed. Can you whether you can hold the iPhone either you bought that so you're thinking intangible can't hold it. So it's about the process is about actions to satisfy consumers examples of those Car Wash hairdressers Barbers, and it goes to The Barbers later and banking for example banks are an example of a service. Provided to Consumers.