Business BTEC revision cards
- Created by: 47893262
- Created on: 07-10-23 17:42
How is ICT used in Business?
1. Administration - spreadsheets and databases
2. Communication - websites, intranets and extranets ICT system
3. Recruitment - application forms
4. Stock control - EPOS system and JUT systems
5. Predict sales - databases
Digital media and social media
Digital media is using information that can be sent electronically between computing devices including:
- Emials
- Text
- Webchat
- Apps
- Social media
What is E-commerce and M-commerce?
E-commerce is the buying and selling of goods and services online, it includes any transactions between businesses carried out online. M-commerce is the buying and selling of goods and services online through a mobile device.
Examples of E-commerce and M-commerce
Examples of E-commerce
- Amazon
- Ebay
- Etsy
- shopify
Examples of M-commerce
- Uber
- Boo hoo
- Ebay
- Vinted
Chain of production
Chain of production
1. Primary - The getting of raw material
2. Secondary - The transformation of raw materials into finished product (manufacturing)
3. Tertiary - The distribution of finished products and services
What is enterprise?
What is enterprise?
An enterprise is a willingness by an individual or business to take risks, show initiative and undertake new ventures
Business Models
Business Models
- Business too business (B2B)
- Business to customer (B2C)
- Social enterprise - this is a business that gives some of their profit to the environment or community
- E-commerce - this is a business that operates online
- "Bricks" - refer to enterprises that have a physical store
- "clicks" - this is where enterprises (stores/ businesses) operate online
- Durable is a good which is expected to last for more than 1 year e.g. a sofa, a computer, a care etc.
- Non-durable is a good which is expected to be used quickly, and might spoil if not consumed immediately e.g. an apple, a bottle of shampoo, clothing etc.
Financial aims and objectives of a business
- Business survival: Business survival refers to keeping the business operating for a certain amount of time
- Profit maximisation: profit maximisation will become the aim of a business once it has reached its break-even point (Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss)
- Growth: Growth can refer to increasing the number of employees, the number of products sold, or income from sales. Firms may aim to grow domestically (in the same country) or internationally (in other countries).
- Market share: market shares refers to the percentage of the market that a business occupies.
- Increasing shareholder value: increasing shareholder value is an important aim for a limited company. By increasing the value of the shares, they will keep their shareholders happy.
Non-financial objectives and aims of a business
- Social and ethical objectives: Social and ethical are linked to doing things in an ethical or environmentally friendly manner, or having a business whose sole purpose is to meet a social need.
- Customer satisfaction: Customer satisfaction measures how happy a customer is with the products or services provided by the firm. This is a key objective for firms in a competitive market.
Sole trader and partnership
- A sole trader is someone who stes up a business on their own.
- Partnerships are businesses owned by two to twent people
Limited and unlimited liability
Unlimited liability - this is where the owner can loose their own personal belongings to cover the debt
Limited liability - sharholders are legally responsible for the debts of a company only to the extenet of the nominal (very small; far below the real value or cost)value of their shares
Public limited companies
Public limited company (PLC's)
- Shares are openly traded on the stock exchange
- Control is delegated to directors/ managers
- CEO (Cheif exectuive)
- Shareholders (Board of directors make decisions on behalf of shareholders and CEO
Private limited companies
Private limited company
- Private limited companies are often a small business such as a family run firms and independent retailers, e.g. double glazing companies, zmall retailers, small manufacturers etc.
- shares are sold privately, usually with the agreement of other shareholders (not on stpck exchange)
- Have limited liability
Who controls the company?
Who controls the company
1. sharholdres - invest money into businesses/ companies
2. Directors - meet on behalf of shareholders (financial)
3. Managers
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