The Role of Business Enterprise 2
Business: Edexcel GCSE, topic 1.1.4
Enterprise
There are three common definitions of enterprise in business:
Business
- A business or organisation like Snap Inc (Snapchat).
Factor of production
- A factor of production which combines land, capital and labour (economists’ approach).
Qualities
- The qualities that allow an entrepreneur to take advantage of business opportunities.
- Someone is enterprising if they show initiative and are willing to take a risk by setting up, investing in and running a business.
The Role of Enterprise
The main role of enterprise is to come up with new ideas and add value to existing ideas. They can fill a gap in the market and offer something that isn't being offered or they can add value to existing ideas (serve customers' needs better than happens at the moment). They can do this in different ways:
Quality
- The durability, finish, nature of the product may be better than what is currently being offered.
Unique selling points (USP)
- The Unique Selling Points (USP) is the thing about the product that is not currently being offered by similar products.
Convenience
- Convenience focuses on making the product more convenient for the customer in any way possible.
Branding
- Branding involves coming up with a distinctive logo/image that adds value to the customer.
Design
- The product design may be superior to products currently offered on the market.
Test yourself on The Role of Business Enterprise 2
Which of these is NOT a definition of "Enterprise"?
Amazon deliver lots of products to customers within 2 hours. Which of the following terms expresses the benefit this delivery brings to customers?
What do you think the USP of this hotel in the Maldives is?