Chapter 1: Developing a Business Mindset
Key Concepts: What is a Business, Environment of a Business, Functions within a Business
What is a Business?
Business: any profit-seeking organisation that provides goods and services designed to satisfy
customer’s needs
- Function: transform lower-value inputs to higher-value outputs
Categorising Businesses:
1. Product Types and Ranges
2. Company Size
3. Geographic Reach
4. Ownership
Business Mindset: adopting an insider’s view of business with an appreciation for the
decisions to be made and challenges that managers face
Business Model: a concise description of how a business generates or intends to generate
revenue
Competitive advantage: some aspect of a product or company that makes it more appealing to
target customers
Non-profit organisations: organisations that provide goods and services without having a
profit motive
Revenue: money a company bring in through the sales of goods and services
Profit: Revenue - costs of production
Positive Contributions Businesses make to society:
1. Offer valuable goods and services
2. Provide employment
3. Pay taxes
4. Contribute to growth, stability, and security
Negative Contributions Businesses make to society:
1. Generate pollution and create waste
2. Create health and safety risks
3. Disrupt communities
4. Cause financial instability
Key Concepts: What is a Business, Environment of a Business, Functions within a Business
What is a Business?
Business: any profit-seeking organisation that provides goods and services designed to satisfy
customer’s needs
- Function: transform lower-value inputs to higher-value outputs
Categorising Businesses:
1. Product Types and Ranges
2. Company Size
3. Geographic Reach
4. Ownership
Business Mindset: adopting an insider’s view of business with an appreciation for the
decisions to be made and challenges that managers face
Business Model: a concise description of how a business generates or intends to generate
revenue
Competitive advantage: some aspect of a product or company that makes it more appealing to
target customers
Non-profit organisations: organisations that provide goods and services without having a
profit motive
Revenue: money a company bring in through the sales of goods and services
Profit: Revenue - costs of production
Positive Contributions Businesses make to society:
1. Offer valuable goods and services
2. Provide employment
3. Pay taxes
4. Contribute to growth, stability, and security
Negative Contributions Businesses make to society:
1. Generate pollution and create waste
2. Create health and safety risks
3. Disrupt communities
4. Cause financial instability
