Purposes of Businesses
Business: BTEC Level 3 National Extended Diploma, topic 1.1.4
What Purpose do Businesses Serve?
Businesses supply goods, services or a combination of both.
Goods
- Goods are physical products such as a PlayStation console or Coca Cola soft drinks.
Services
- Services are non-physical actions performed by a business to help a customer.
- Snapchat is an example of this; they provide a digital platform for people to send photos to one another.
- Snapchat don’t actually provide a physical good.
Goods and services
- Some businesses provide both goods and services.
- Restaurants, for example, provide goods in the form of physical food but also services in the form of waiters and waitresses and an atmosphere where customers can enjoy their meal.
B2B and B2C
- It is also important to note that some businesses sell products or services to consumers (B2C – business to consumer) while others sell to other businesses (B2B - business to business).
- DHL sells logistics (delivery and supply chain) support to other businesses like Jaguar Land Rover.
Test yourself on Purposes of Businesses
What can businesses sell to customers?
What type of business sells to consumers?
What is Coca Cola an example of?