GNVQ Business unit 1:Investigating how businesses work [intermediate]

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task 1 TAims and objectives

Making a profit

It is very important for a business to make a profit because no business can survive for very long if it is not profitable. Small businesses need to make a profit because the owner will not be able to live or pay its creditors and large companies need to make a profit so that it can pay its shareholders

Providing goods to the local or wider community

Every business makes goods, provides goods or provides services. Banks for instance provide a financial service. Retailing organisations sell goods. One example is Debenhams. Manufacturers make goods one example is massy Ferguson. It is also possible foe organisations to offer a range of goods and services. For example the co-op sells goods to consumers and also offers insurance. Organisations also differ in whether they offer their goods or services nationwide, locally or internationally. The type of product can usually determine if they sell their product locally, internationally or nationwide.

For example it is not profitable for a mobile phone operator to sell their service locally as their costs would be too high.

Survive as a business or expand

Whether or not a business decides to concentrate on surviving or expanding usually depends on how the business has done in the last year, the previous year or what it predicts for the next or future years. For example if the economy is through a recession then a business may decide that it cannot improve sale and so will concentrate on surviving by reducing costs or if an organisation or an entire market such as the air-line industry go through a bad time then they will decide that the time is not right to try and expand so will concentrate on surviving

Task 2

Functional areas within...