EXTRA LESSONS BUSINESS

Added Value

The difference between the selling price of a product and the cost of the raw materials used to make it.

Brand Creation

The process of establishing a brand that represents quality and status, which can allow consumers to pay more.

Consumer Loyalty

When consumers are willing to purchase more expensive products due to strong brand loyalty created by advertising.

Customized Services

Personalized services provided by a business that add value, leading to higher consumer willingness to pay.

Convenience

The ease with which consumers can obtain products or services, often resulting in a willingness to pay a premium.

Profitability

The increased financial gain for a business as a result of adding value and being able to charge more for its products or services.

Internal Environment

The operational aspect of a business that includes controllable factors such as leadership and organizational culture.

External Environment

The market and micro environmental factors that are dynamic and challenging for businesses to control.

Entrepreneur

An individual who is willing to create a new business idea or invention and is willing to take risks to pursue success.

Intrapreneur

An employee within a company who is tasked with creating or innovating products or processes, behaving like an entrepreneur.

Social Enterprise

A business focused on social objectives that reinvests profits back into society rather than primarily aiming for profit.

Triple Bottom Line

A method to measure business performance based on economic, social, and environmental factors.

Primary Sector

The economic sector involved in the extraction of raw materials like mining, fishing, and farming.

Secondary Sector

The sector that transforms raw materials into finished goods through manufacturing and processing.

Tertiary Sector

The sector focused on providing services to consumers, such as retail, banking, and education.

Franchise

An agreement where one party allows another to use its trademark or business model and provides support for a fee.

Joint Venture

A business arrangement where two or more parties collaborate on a specific project and share resources.

Strategic Alliance

An informal agreement between two companies to share resources for a shared goal without creating a new entity.