06 Explain one way a secondary sector business adds value.

[Sir Afzal Shad]

06 Explain one way a secondary sector business adds value. [3]
Hint: Manufacturing process > Example: A bakery takes flour and sugar > Bakes it into a cake > Sells the cake for much more than the ingredients cost.

Possible Structure - 3 Marker
[KN] >> [APP] >> [AN]

[Areeba Arshad]

[KN] A secondary sector business adds value by transforming raw materials into finished products that are worth more.
[APP] For example, a bakery takes flour and sugar and bakes them into cakes, which can be sold for a higher price than the cost of the ingredients.
[AN] This adds value because customers are willing to pay more for a ready-made product than for raw materials alone. It also saves customers time and effort since they don’t have to bake it themselves, making the product more attractive. As a result, the business can charge a higher price, increase profit margins, and remain competitive in the market.

[Shaliza khawaja]

(KN) secondary sector add value to there product by adding more features
(APP) smartphone company can add value by increasing the camera quality or battery life
(AN)This not only makes them more willing to pay more but also attracts customers further, leading to spread of good word of mouth, meaning more revenue in the long run.

[hassanalizafar]

[KN]It adds value by transforming raw materials into finished products.
[APP] For instance, a bakery takes flour and sugar and bakes them into cakes.
[AN] This means the bakery turns low cost ingredients into a desirable product which improves taste and presentation allowing it to charge a higher price leading to greater sales revenue hence improve competition in market.

[Fatima ibtehaj]

[KN]By assembling raw materials into finished products.
[APP]For example; a factory takes raw wood and turns it into a table. The table will be worth more than the raw wood because it will be usable by people.
[AN]Hence this allows the business to charge a higher price hence increasing revenue and people will view it as a prestigious brand hence developing brand image and increasing consumer base.

[Mamoona Hussain]

KN: A secondary sector business can add value to its products through adding features.
APP: For instance a car manufacturer could add value to his cars by introducing features like sun roof or imported music systems etc.
AN: This will help the manufacturer attract more customers, which will improve the brand image, due to which the business will able to charge higher prices so that the cost of those features will be features will be covered and the business will still have an amount left (added value).

[Aarib Saad]

(KN)Through improving the packaging of the product.
(APP)For instance, "Ferrero Rocher" is a chocolate manufacturer and packages in chocolates in golden foil and high quality boxes, making it's products feel more premium and for the higher class.
(AN)This in turn leads to premium pricing being able to be charged, allowing business to reinvest into the business and launch new flavors of it's chocolate, leading to it being able to attract a more diverse range of consumers, increasing market share.

[tanzeelrehman]

KN: A secondary sector business can add value by making unique designs.

APP: For example, a bakery can make uniquely designed cakes based on customer demands

AN: Because of this, more customers will be attracted, so its profit margin will be increased. It will make that bakery different from others so it will gain competitive advantage. It will also improve the brand image and will ensure long-term sustainable growth

[Arham Qadri]

[KN] Through improved packaging and branding
[APP] For example Khadi which is a clothing brand can add value by uniquely packing the clothes
[AN] Hence this will cause the brand to charge high price increase profit margins and remain competitive in the market.

[UPDATED]

[sarah_naeem]

[KN]: Secondary sectors add value by converting raw materials into finished goods.
[APP]: For instance, a bakery takes flour and sugar and bakes them into cakes.
[AN]: Thus, the bakery makes desirable products from low cost ingredients which grabs the attention of customers and makes them willing to pay higher prices as they themselves would not have to put in the effort to make a cake this also increases profit margin and the business remains competitive in the market.

[shamaim shakeel]

K: A secondary sector business adds value by turning raw materials into finished products.
App: For example, a furniture factory uses wood to make tables and chairs.
AN (3 bounces): This makes the product more useful, more attractive to customers, and allows the business to charge a higher price

[Subhan Zafar]

{KN}By using packaging to protect and attract customers.
{APP}For instance, a chocolate manufacturer may package its product in an attractive, colourful box with clear branding.
{AN}By using this packaging, the business adds value in two ways. First, the packaging protects the chocolate from damage, ensuring the product reaches the customer in good condition. Second, attractive packaging makes the product stand out on shelves, encouraging customers to buy it instead of a rival brand. This allows the business to charge a higher price than for plain, unbranded chocolate, increasing revenue and profit margins.

[Arham Qadri]

[KN] By transforming raw materials into finished products through manufacturing.
[APP] For example, a furniture industry turns wooden logs into chairs, slabs and table etc.
[AN] This allows the industry/secondary sector to charge high price, attract more customer and increase the products usability.


[UPDATED]

[Muaz Aamir]

KN: A secondary sector business adds value by turning raw materials into finished goods.
• AP: For example, a furniture manufacturer turns wood into a polished chair.
• AN: This increases the product’s usefulness, allows the business to charge a higher price, and makes the product more attractive to customers.

[Abdullah Baig]

Kn
A secondary sector business adds value by transforming raw materials into finished goods through the manufacturing process.
App
For example a bakery takes flour and sugar to produce cakes this process changes simple ingredients into a desirable product which allows the business to charge a higher price than the cost of the raw materials resulting in greater revenue from each unit sold
An
In addition adding value helps the business differentiate its products which can reduce the impact of competition