IGCSE, A Level Business Student Forum

[KN] Increased profits.
[AN] Businesses adding more value to their goods and services can charge higher prices
[AN+] which will improve the brand image.
[KN] Innovation
[AN] adding value leads firms towards continuous improvement
[AN+] This helps the business expand and increase sales

9. Analyse possible advantages of adding value to a business. [6]

[KN]an increase in profits in the business
[AN] when a product, satisfying customer demands, near perfectly, is sold, consumers gain the impression of premium quality and quality, meaning a premium brand to buy from, and buy more (increased sales)
[AN+] This results in higher prices being charged, further increasing their profits.

[KN)More competitive in the market
[AN]when adding value to a business, its output/ products and services also increase its qualityy, making it unique and diverse from its competitors
[AN+]this will lead to an increace in sales, competition, market share, etc.

(Kn) Improved Quality (an) Adding value could mean enhancing the product adding new features etc, this will improve Quality (an+) hence, this will attract customers towards their product.

(Kn) more profits (an) by adding value, the business could easily increase their prices, which will increase total revenue (an+) Therefore, this will allow them to expand their business and invest.

[KN] Higher profit margin
[AN] with an increase in processes to a product would lead to more the value added to the product
[AN+] by adding value would lead higher profits as it can be sold on an higher price

[KN] brand image
[AN] adding value could be by producing higher quality product
[AN+] this would improve brand image as the product sold in higher quality

[kn] business can charge higher prices
[an] since they have better quality or usp which differentiates them from competitors
[an+] customers would mot mind paying more hence increasing profits

[kn] brand image improved
[an] business will be well known/ can possibly be market leaders
[an+] customers would want to purchase and remain loyal to the business

(KN) Improved Brand image
(AN) as by adding value to the products price, it will be recognized as a sort of luxury good by the people,
(AN+) hence when that happens, the brand image of ones business would improve due to the product being recognized as luxurious or more qualitative.

(KN) More profit
(AN) as by adding value to the product, the business will be able to receive more revenue than before,
(AN+) hence, if the business earns more revenue enough to cover the cost of production and further, it would mean that the business would increase it's profit nonetheless.