The role of business enterprise Y 10 Business
The role of business enterprise Y 10 Business Mrs Millar
Learning Objectives • To be able to identify the main purpose of businesses • To be able to explain why added value is important
The purpose of businesses? • To Produce Goods & Services – Must be what the customer wants! • Market orientated – Helps the economy to grow and standards of living to increase
• To Meet Customer Needs – Not just the product – Whole experience • Fast delivery, easy to use website, competitive prices, customer service, enough stock, prompt service THINK! How does meeting customers needs differ between a retail shop and an online shop?
Added Value The difference between the cost of inputs (such as raw materials) to the business and the price that customers are willing to pay
• All businesses aim to add value to their products. • Methods – Convenience – Branding – Design & Quality – Delivering excellent service – Unique Selling Points (USP) TASK! How would you add value to this potato?
Why is added value important? • Charging a higher price • Need to make a profit to be successful • High levels of added value = higher profits = better success = Survival, growth & success • Creating a point of difference from the competition
What is a brand? A named product/service which consumers see as being different from other similar products that they can associate and identify with. • The brand identity includes: – Name, logos, colours, images, sounds, aims, values – Has an image or identity that triggers emotions
Why is a brand important? • Customers are more likely to purchase a brand over a rival if they connect with it • Branding increases the awareness of a product • Branding creates loyalty and repeat purchase • Branding allows you to charge a premium price • Branding differentiates you from your competitors and gives you a USP
Many businesses develop a number of brands as part of their product portfolio Each brand may be targeted at a different market segment
Adding value the low cost airline way • http: //www. tutor 2 u. net/blog/index. php/businessstudies/comments/adding-value-or-up-selling-the-flylo -way/ • • • Ryan Air toilet charge Easyjet – allocated seating http: //www. bbc. co. uk/news/business-17522738 Drive through and home delivery http: //www. telegraph. co. uk/food-anddrink/news/worlds-first-drive-through-greggs-nowopen/
Task • Questions on added value in a garage
Task • You will be given a small local business • Design a plan of how this business can add value to improve the way they meet customer needs • Use ICT to create a presentation or report
- Slides: 13