The nature of business activity
Businesses are set up by A calculated risk-taker who sets up a business in return for financial gain. for a number of reasons and with different A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims.. Businesses ultimately aim to provide a A product that can be touched. or a Something a business provides that is intangible, ie not able to be touched..
The competitive environment
Businesses operate in increasingly competitive environments. Almost all businesses have some sort of Competition exists when there is more than one business trying to compete for the same customers in a market., so understanding competitorsâ strengths and weaknesses is extremely important. A competitor is any business that sells the same or similar products or services in the same market. Businesses must react to what their competitors do, for example if a business releases a new product, its competitors may also release a new product. Businesses may want to know certain things about their competitors, such as their The distinctive factors that make a product or brand stand out from rivals., price, quality, convenience, product range and customer service.
- unique selling points or USPs could include opening the first and only vegan restaurant in a neighbourhood for example, or selling high-quality products, such as handmade shoes.
- price refers to how much a product or service costs the customer to purchase
- quality refers to how well a product is made or how If an object is prestigious, this means it attracts respect or admiration based on its quality or other attributes. a service is
- convenience refers to how easy something is to purchase, reach or use.
- product range refers to the number and types of products or services that are sold by a business
- customer service refers to the service offered to customers by a business before, during and after a transaction has taken place
The dynamic environment
A dynamic environment is one that is rapidly changing. In order to understand what makes a business dynamic, it is necessary to understand the market in which the business or business The different skills an entrepreneur needs to possess in order to be successful. The term can also relate to a business organisation. operates. Businesses have to adapt quickly to changes and develop new ideas, products and services to keep up with technology and new trends. Business ideas can come about through:
- changes in technology
- changes in what In business, a consumer is a person who uses a product and may also buy it. want
- products and services becoming No longer used or needed.
- new and original ideas
- adapting existing products, services and ideas
Identifying and responding to business opportunities
New opportunities arise constantly for businesses. This could involve opportunities to grow, change the values of the business, develop new products, or change the way a business works. Businesses must take advantage of these opportunities to remain relevant in the dynamic business environment.
The different scale at local, national and global levels
There are businesses of all different sizes and scales, from local to national and global businesses. Local businesses are those that operate on a small scale usually in one or two areas. National businesses operate in multiple locations around a country or sell online. Global businesses operate in a range of countries around the world, these are usually well-known and very large businesses.
Businesses of all sizes have their own challenges and opportunities.
The interdependent nature of business activity
The success of a business can hugely depend on how well each of the departments in the business work with each other, and how well a business works with other businesses. They must work closely and rely on other businesses such as suppliers.