Task 1, C: Produce a brief essay that explains the different purposes
of business information
Business information is critical for a business to make well informed decisions, for this
to be appropriate it needs to be accurate and reliable. This information can have many
purposes including updating knowledge, strategic direction and communicating sales
promotions.
The first purpose of business information is updating knowledge, it is essential for a
business to have not only reliable information but up to date information too. Markets
are continuously developing and it is important for business to keep on top of this.
Knowledge that businesses need to keep track of include changes to labour markets,
the economy and laws that could affect the way the business may operate. Wrong
decisions made by businesses are most likely due to inaccurate or outdated
information.
The second purpose of information is informing of future developments within the
market a business operates in. Businesses must adapt and grow with their markets or
they will be left behind by their competition. Accurate and up to date knowledge of the
development within their markets will help a business to prepare for changes and
developments.
Strategic direction is the action a business uses to reach the goals of their business
plan. Once a business knows their strategic direction they can perform a SWOT
analysis to audit the business and their environment. Knowing a business’s strengths
and weaknesses helps marketers to concentrate on the organisations issues and
eventually fix them. Knowing a business’s opportunities and threats allows them to stay
ahead of competitors and developing markets.
Another purpose of business information is to offer competitive insight, so that a
business does not lose sales and market share. Large businesses will have a section of
their marketing departments to do this whereas smaller businesses will use market
research companies. Competitive insight is essential for a business to know how to
make their product or service different from the competition and to know how to develop
so that your product or service is better than others.
Communicating sales promotions is also a purpose of business information, this is done
through advertising in newspapers, TV and radio. Sales promotions are used to
temporarily boost sales for a product or service. This is a marketing technique used to
attract potential long term customers. Accurate business information allows businesses
to use sales promotions effectively so that they do not lose money or waste valuable
resources.
The last purpose of business information is inviting support for activities. Whatever a
business does they need the support of their workforce and customers, business
information is needed to do this seamlessly. For example if a business needs to adapt
the way they operate they need the support of their staff and customers, this can be
gained by explaining the need for the change to the business effectively.
Overall the purposes of business information are to help business owners to
communicate well with their staff and customers so that they can operate smoothly.
of business information
Business information is critical for a business to make well informed decisions, for this
to be appropriate it needs to be accurate and reliable. This information can have many
purposes including updating knowledge, strategic direction and communicating sales
promotions.
The first purpose of business information is updating knowledge, it is essential for a
business to have not only reliable information but up to date information too. Markets
are continuously developing and it is important for business to keep on top of this.
Knowledge that businesses need to keep track of include changes to labour markets,
the economy and laws that could affect the way the business may operate. Wrong
decisions made by businesses are most likely due to inaccurate or outdated
information.
The second purpose of information is informing of future developments within the
market a business operates in. Businesses must adapt and grow with their markets or
they will be left behind by their competition. Accurate and up to date knowledge of the
development within their markets will help a business to prepare for changes and
developments.
Strategic direction is the action a business uses to reach the goals of their business
plan. Once a business knows their strategic direction they can perform a SWOT
analysis to audit the business and their environment. Knowing a business’s strengths
and weaknesses helps marketers to concentrate on the organisations issues and
eventually fix them. Knowing a business’s opportunities and threats allows them to stay
ahead of competitors and developing markets.
Another purpose of business information is to offer competitive insight, so that a
business does not lose sales and market share. Large businesses will have a section of
their marketing departments to do this whereas smaller businesses will use market
research companies. Competitive insight is essential for a business to know how to
make their product or service different from the competition and to know how to develop
so that your product or service is better than others.
Communicating sales promotions is also a purpose of business information, this is done
through advertising in newspapers, TV and radio. Sales promotions are used to
temporarily boost sales for a product or service. This is a marketing technique used to
attract potential long term customers. Accurate business information allows businesses
to use sales promotions effectively so that they do not lose money or waste valuable
resources.
The last purpose of business information is inviting support for activities. Whatever a
business does they need the support of their workforce and customers, business
information is needed to do this seamlessly. For example if a business needs to adapt
the way they operate they need the support of their staff and customers, this can be
gained by explaining the need for the change to the business effectively.
Overall the purposes of business information are to help business owners to
communicate well with their staff and customers so that they can operate smoothly.
