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• Cambridge O Level Business Studies Notes
• Igcse Business Studies Notes Pdf

Notes for Cambridge International Examinations. Search this site. Business Studies (9609). Complete AS Notes: Notes. Notes for CIE.

IGCSE Business Studies Notes • 1. BUSINESS STUDIES REVISION BOOKLET INDUS INTERNATIONAL SCHOOL 2014-15 1 P a g e 1. Understanding business activity Chapters covered in this unit: 1.1 Business Activity 1.2 Classification of Businesses 1.3 Enterprise, business growth and size 1.4 Types of business organisation 1.5 Business objectives and stakeholder objectives • BUSINESS STUDIES REVISION BOOKLET INDUS INTERNATIONAL SCHOOL 2014-15 2 P a g e 1. Economic Problem We have unlimited Needs and wants and there are limited resources. This is the basic Economic Problem. Limited Resources: Resources available on earth to make goods and services to satisfy our needs and want are limited. These resources are also known as factor of production.

These can be categorised as Land All natural resources provided by nature such as fields, forests, oil, gas, metals and other mineral resources Labour The people who are used produce goods and services. Capital Finance, machinery and equipments needed to produce goods and services.

Enterprise The skill and risk taking ability of the person who brings together all the other factors of production together to produce goods and services. Usually the owner or founder of a business. Business activity combines the factors of production to produce goods and services to satisfy our needs and wants. So a business activity takes inputs (factors of productions), processes it and gives an output Opportunity Cost: Because of Unlimited needs and wants and limited resources we have make a choice. When we make a choice we have to give up something. This next best alternative foregone while making a choice is known as Opportunity Cost. Importance of Specialisation Specialisation results in greater efficiency and productivity.

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Cambridge O Level Business Studies Notes

As the workers don’t have to move between jobs. This leads to lower cost of production.

Time is saved as the workers become for efficient in performing a particular job. By doing the same job repeatedly, the workers become ‘experts’, they commit less mistakes and hence leads to less wastage.

Due to specialisation production level increases which make it possible to carry out mass production. Specialisation is good for workers too. They master the job and can bargain for better wages. However, In specialisation each worker is assigned a particular piece of work and he or she does that particular task. Repeatedly doing the same job can result in boredom for the workers. Repetition of work leads to a mundane routine for workers, this kills their motivation. They might become careless.

This will lead to more errors and affect the quality of production. • BUSINESS STUDIES REVISION BOOKLET INDUS INTERNATIONAL SCHOOL 2014-15 3 P a g e Moreover, a job might be broken into small identifiable tasks, which a different set of workers might be doing. Now If a worker cannot complete his or her job on time this may result in a bottleneck for the whole production process.

Workers lose flexibility due to over specialisation on a particular job. If by any reason, that particular skills becomes obsolete, the worker will become redundant and might end up losing her job.

Igcse Business Studies Notes Pdf

The business will have to invest in training their workers in particular skills. This costs money which adds up to the cost of production. Ways of adding value There are different ways through which businesses can add value to their products and services. Creating a brand: Brands represent quality and sometimes status. Consumers are prepared to pay more for products which have a strong brand attached to it. Why does a pair of Nike sell costlier than its counterpart Puma, though the cost of production may not be much different.