The Role Of Business Enterprise Flashcards
What is added value?
The extra value a business creates through its production, distribution or marketing process.
How can a business create added value through its production?
Improve product design, features, or quality + USP
How can a business create added value through its distribution?
Offer a product/ service in a more convenient location
How can a business create added value through marketing?
Create brand image
What are 4 pros of adding value?
Products/Services stands out from Rivals, Charge Higher Prices, Large Profit Per Unit, Increase Market Share
What does a larger profit per unit lead to?
Lower break-even output, higher margin of safety = lower risk
What does a product standing out from its rivals lead to?
A higher chance of repeat business, Competitive Advantage
What do businesses do?
PAM, Produce goods and services, Add value, Meet the needs of customers