Unit 1 - AOS3 (Operating factors)

Question 1

Customers

Answer 1

individuals who purchase goods and services from a business expecting high quality at competitive prices.

Question 2

Competitors

Answer 2

The business or individuals that offer rival goods and services in the same market.

Question 3

Why is competition important?

Answer 3

-Helps businesses improve efficiency of their production processes, keeping prices low and increase sales and profits.
-Encourage businesses to invest into the ongoing development of their goods and services offerings, improving reputation and increase sales.

Question 4

How can businesses improve competitive advantage?

Answer 4

-buying-out rival businesses
-higher quality products at lowest cost possible, while maintaining profit margins
-Superior and reliable customer service
-Thoughtful and creative marketing
-catering to a specific demographic or to changing customer tastes.

Question 5

Suppliers

Answer 5

Individuals or businesses that provide the resources needed for producing goods and service.

Question 6

Why should businesses have a stable supplier network

Answer 6

it reduces the business’s vulnerability to supply disruptions and expense hikes.

Question 7

Supply chain

Answer 7

The network of suppliers from which the business purchase resources.

Question 8

Why is supply management crucial?

Answer 8

-If resources required are not on hand, then nothing can be produced.
-If the quantity of demand is not right, businesses cannot meet demand.
-If resources are inferior quality, it’s difficult or costly to produce quality products.

Question 9

What should businesses keep in mind when planning for a supply chain?

Answer 9

-Where the resources are being sourced from
-How the resources are being reached to the company
-Can the resources meet the business needs

Question 10

Special interest groups

Answer 10

A set of individuals who attempt to convince a business to change or adopt certain policies or procedures.

Question 11

Special interest groups

Answer 11

A set of individuals that focus on a specific problem area, like youth, unemployment, civil liberties, anti-globalization, climate change, etc.

Question 12

Businesses associations

Answer 12

organizations that support businesses through training, education programs, advice, and the promotion of business interests to the public and government.

Question 13

Unions

Answer 13

Organization that represents employees in a particular industry, trade or occupation, in order to improve wages and working conditions.

Question 14

Consumer groups

Answer 14

Bodies that monitor a business’s performance in terms of product safety, packaging, pricing, and advertising.