Business Activity Notes
Specialization
Specialisation: workers focusing on specific roles/tasks to gain skill.
Division of labor: separating work into tasks completed by different people/groups.
Results in higher output per worker, increasing productivity.
The Purpose of Business Activity
Meeting customer needs builds loyalty and increases brand awareness and generates revenue.
The Process of Adding Value
Adding value: transforming raw materials into an end product worth more than the raw material costs.
Added value: difference between the price charged and the cost of inputs.
Greater added value leads to more successful businesses and higher profits.
Methods of Adding Value:
Branding: Creating a superior brand through quality materials, design and marketing.
Convenience: Offering more convenient options.
Quality: Using beautiful packaging to create an exciting customer experience.
Unique selling points (USPs): Customization to gain a competitive advantage.
Design: Using robust tools and amazing screen to gain a competitive advantage.
Examiner Tips and Tricks
Adding value raises costs, but is worthwhile if the increase in selling price outweighs the costs.