IGCSE, A Level Business Student Forum

KN: The option/product/service that they want may become less
APP: Example a parent wants more schools/better education for their child, however due to scarcity of resources the government may be spending their funds on hospitals/army.
AN: Hence this may cause the consumer to get dissatisfied with ...

KN: They will have limited sales on expensive products
APP: Example, their more expensive products like cheesecake etc will start to sell out less wheras cheaper coffee will sell out more
AN: This is because people have limited resources/funds hence will spend on cheaper products. This will lead to ...

KN: Opportunity cost is the second best option a buisness/government/consumer has that they don't choose.
APP: Example, if the government has set funds that only allow them to build one of either a hospital or a school - and they choose the hospital, then the school is their oppurtunity cost
AN ...

KN: A bank can provide a good application and customer service
APP: Example if a customer wants to take a loan they will just have to press a few buttons on the app that will respond well, and incase of any issue they will have a good team in place to handle the customer.
AN: Hence this targets the ...

KN: Needs are already being satisfied by competitors
APP: Eg all watch companies fulfill the basic need of checking the time, but only luxury watch brands like Gucci have luxury elements like gold plating etc.
AN: Hence it provides a USP/Unique Selling Point for the buisness that allows them to ...

KN: Value of output may go to waste/not be sold
APP: Eg a business outputs 200 units of a product - which will give us value of output - eg cans of soda, but sells only 100 - which will be our value of sales.
AN: Therefore the value of sales will accuratly tell us how much the profit margin/loss is ...

KN: It does not factor in the main product/number of different products of that company
APP: A company, eg Disney would only have a small market shares in Theme Parks, wheras its main product is its Studio/Entertainment Industry.
AN: Hence although Disney is a huge company, we cannot see that using ...

KN: It cannot be used when comparing labour and capital intensive businesses with each other
APP: Example, a large grocery store like Target versus a machine-intensive business like Mars.Inc chocolate.
AN: This is because a labour intensive business will have more employees and less machines hence ...

KN: It will not be accurate for a capital intensive buisness.
APP: E.g. A company like Mehran may have less employees compared to CSD which may have more but Mehran could be the bigger buisness.
AN: This is because eg Mehran has more machines that replace the employee number, hence may make it look ...

KN: More number of employees means a larger buisness
APP: E.g. the staff of an airline eg PIA is alot smaller than the staff of Emirates as it is alot larger
AN: This is because if the airline would be larger they would have more planes hence require more staff for attendants, pilots, crew etc. Also ...

KN: Value of sales is a measure as a higher revenue means the business is larger
APP: E.g. if a buisness eg Apple is earning millions of dollar annually compared to Nokia which currently might be earning much less, Apple would be the larger buisness
AN: This is because a larger revenue means the ...

KN: Number of employees can be used when measuring two equally capital intensive buisnessess.
APP: For example, we can compare two phone manufacturing companies (eg Apple and Samsung) with eachother - or ALTERNATIVELY we can compare two grocery stores with eachother (eg Imtiaz and CSD)
AN: Hence ...

KN: They can have less stock being produced
APP: Potential laws can restrict factories with huge gas production to only be functional for a few hours, or for factories to use more eco-friendly but less productive fuel.
AN: Therefore since the factory will be running for less time and be less ...

KN: Primary sector gives materials that the Secondary sector uses to create its own products.
APP: Primary sector gives wood or fabric that is then processed by secondary sector business to create a sofa
AN: Hence the primary sector is providing raw materials without which the secondary sector ...

KN: It would to better trade and higher economy.
APP: Example, fish would be processed into its different packaged goods eg oil.
AN: More processing means that there would be an added value on the goods therefore can be sold for a higher price, and hence the country can earn better from trade deals ...