1.1.5
Purposes of Businesses 2
What Do Businesses Do?
What Do Businesses Do?
Businesses can serve either customers’ needs or wants. Some businesses are called distributors - they can buy products from manufacturers and sell them onto businesses or customers.


Customers' needs
Customers' needs
- Customers' needs are the things that people can't live without.
- For example, Severn Trent provides water to people's homes in the United Kingdom.


Customers’ wants
Customers’ wants
- Some businesses exist to serve customers’ wants. They don’t need these products and services but want them.
- E.g. television, jewellery or parties.
Why are Businesses Set Up?
Why are Businesses Set Up?
We have seen that businesses exist to serve customers’ wants or needs and do so through supplying goods or services. Businesses are set up for a variety of reasons.They are not always set up to provide or increase someone’s income. A few key reasons include:


People want the good or service
People want the good or service
- An entrepreneur starts to sell a good or service that they think people will want to buy.


Distribute goods
Distribute goods
- Businesses may be set up to distribute goods – they buy products from manufacturers and then sell these goods to other businesses or to customers.


Benefit society
Benefit society
- Businesses may be set up to benefit other people or to benefit society as a whole. These businesses are often not-for-profit organisations.
- E.g. a business that is set up to provide malaria nets to people who can’t afford them in Africa.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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