Business Environment

Competitive advantage: Factors that allow a company to produce goods or services better
or cheaper with regards to their rivals.
-This is achieved by pricing, discounts, advertising, improving quality, functionality,
and responding to customer needs.
Pricing
Reducing the cost of production by using technological advances or finding
alternative methods to make it cheaper, by outsourcing part of their business
to someone else where it can be produced at a lower cost, and by reducing
profits there is an increase in sales.
Advertising
By use of social media, print media, TV, billboards, and free trial promotions.
Quality
Measured by performance, features, reliability, conformance, durability,
serviceability, aesthetics, and the perceived quality.
Responding to customer needs
By ensuring good and responsive customer service, delivery and repairs are
quick, products are adjusted or improved by use of customer experience,
ethically produced products, and a means of receiving customer service.
Innovation: changing a product or process so it is more effective.
Businesses want to create goods or services that the clientele want.

Market Segmentation:

Where the consumer comes from, for example

Geographical Market Segment their nation, state, or region.

Demographic Market The age of the consumer, gender, amount of

Segment income, ethnicity, and religion.

Includes the level of knowledge the consumer

Behavioural Market Segment has of the product or whether the consumer uses
products regularly.

Includes the consumers’ attitudes and opinions

Lifestyle Segment or the way they spend their leisure time.
Financial Literacy

Financial literacy is the ability to make informed judgements and effective decisions about
the use and management of money.
Financial concerns included coping with job losses and reduced income from employment,
businesses, or investments; concerns about job security, career prospects and retirement
plans; and the financial wellbeing of family members and the local community.

Banks:
-Banks provide the means for people to borrow money, make investments, save for
the future and handle smaller tasks.
-Banks manage the flow of money between people and businesses.
-Banks offer a safe place to keep money. This is known as deposit
-Banks use the money in deposit accounts to make loans to other people or
businesses.

How banks make their profits?

-The bank receives interest payments on loans.
-Part of that interest is then returned to the original deposit account holder in
the form of interest.

Debt
Debt is a sum of money that is owed or due.
Types of debts
-Mortgages -Utility Bills
-Credit Cards -Unpaid Taxes
-Car Loans -BNPL Platforms
-Personal Loans
Good Debt: Debt that helps you to purchase wealth building assets.
Bad Debt: Bad debt is used to buy things that will not increase in value.

Financial Risk
In order to gain financial rewards, there is often a form of risk involved.
The types of risk
-Income -Assets
-Investments -Spending and borrowing
Types of investment
Stocks, property, managed fund, classic cars, art, antiques, gold, and crypto currency.
Protection from risks
Insurance, budgeting, research, attitude to risk, diversification, and planning.

Minimising financial risk

Fraud: Financial fraud occurs when someone takes money or other assets from you
through deception or criminal activity.
Types of Financial Fraud
-Identity theft -Embezzlement -Tax fraud
-Credit Card Fraud -Insurance