Factors of Production
Machinery
What is a USP?
A USP is a feature of the product that makes it different from competitors for the customer
What does the primary sector involve?
It involves acquiring or extracting
raw materials
What does the customer gain when the business adds value?
Give examples of inputs
Raw materials, plastic, etc
What type of Labour can be found inside a business or outside a business?
Employees, Stakeholders, Suppliers etc...
What is a brand?
A brand is a name, design, logo, symbol or indeed anything that makes a product recognizable and distinguishes it from the competition in the eyes of the customer.
Give an example of a process that occurs during the secondary sector
-Cars are manufactured using many different parts and materials
-The construction industry uses many parts to produce houses and office space
What does the business gain when adding value to the transformation process?
They get profit or financial return
Give examples of outputs
A service, a coffee, a product
Give an example of Land as a factor of production in a business?
The location in which a business would like to place their facilities etc...
When does added value occur?
occurs when in a transformation process when outputs are produced that are worth more than the inputs brought in to provide them.
Intangible
Why would a business want the customers to feel like they have a good value for their money?
because they want to be able to sell more and retain clients
What do businesses do with inputs, step-by-step?
They transform them and produce outputs.
Which are the factors of production?
Land, Labour, Capital, Enterprise
How can the transformation process add value?
Changing the form of raw materials (e.g. wood into furniture).
Improving quality through skilled labour or technology.
Providing a service that increases usefulness (e.g. repairing a phone).
Adding convenience, branding or design.
What is the relationship between a business's need for the quaternary sector when the economy is in a good state?
It represents organizations that are based on knowledge and the skills of employees and that provide information, like management consultancies.When the economy is good they benefit from this sector to get information on it and further expand and improve their business.
To a good extent, because, for the business, they gain more clients and can sell more expensive. For the client they get better products. Nevertheless, the business can suffer from higher costs if demand is not met, and the customer might not like a price change or material change.
What is the goal of turning inputs into outputs for the business and clients's relationship?
It is to create something the customers value