Learn: Business in the Real World

Welcome!Today we'll explore Business in the Real World, an important topic in AQA GCSE Business 8132. We'll cover the purpose of business, types of business, aims, stakeholders, and more. Let’s get started!

Purpose of BusinessA business exists to produce goods or services that meet people's needs and wants. Goods are physical items (like food), while services are actions that help people (like haircuts). Businesses also aim to fulfil opportunities and create value for their customers.

EntrepreneurshipAn entrepreneur is someone who starts and runs a business. They often take risks, are organised, and are creative. Entrepreneurs are motivated by factors like earning profits, gaining independence, or growing their business. Famous examples include Richard Branson and the founders of Gymshark.

Types of BusinessBusinesses can exist as a sole trader (one owner), partnership (2+ owners), Ltd (private limited company), Plc (public limited company), or not-for-profit organisations. Each type has different structures, liability, and levels of control.

Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (short-term targets). Common aims include making a profit, surviving in the market, growing, increasing market share, ensuring customer satisfaction, and acting ethically.

StakeholdersStakeholders are people or groups affected by a business. Key stakeholders include owners, employees, customers, suppliers, and local communities. Their aims can conflict; for example, owners want profits, while employees may want higher wages.

Location FactorsChoosing the right location is crucial. Factors include proximity to markets (customers), availability of labour, access to raw materials, level of competition, and costs. For example, supermarkets need to be near large populations.

Business PlansA business plan outlines a business's goals and strategies. It includes sections like market research, financial forecasts, and operational plans. Pros include helping secure loans, but cons include the time and cost of creating one.

Review Time!Great work! You've learned about the purpose of business, types of business, aims, stakeholders, location factors, and business plans. Now let's test your understanding with a few questions.