The Role Of Business Enterprise Flashcards

1
Q

What is added value?

A

The extra value a business creates through its production, distribution or marketing process.

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2
Q

How can a business create added value through its production?

A

Improve product design, features, or quality + USP

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3
Q

How can a business create added value through its distribution?

A

Offer a product/ service in a more convenient location

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4
Q

How can a business create added value through marketing?

A

Create brand image

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5
Q

What are 4 pros of adding value?

A

Products/Services stands out from Rivals, Charge Higher Prices, Large Profit Per Unit, Increase Market Share

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6
Q

What does a larger profit per unit lead to?

A

Lower break-even output, higher margin of safety = lower risk

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7
Q

What does a product standing out from its rivals lead to?

A

A higher chance of repeat business, Competitive Advantage

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8
Q

What do businesses do?

A

PAM, Produce goods and services, Add value, Meet the needs of customers

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