AQA Business GCSE Unit 3 key terms

The process of buying goods and services including dealing with: • demand • selection of suppliers • analysing and negotiating prices • making the purchase • managing payments.

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The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.

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The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources.

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The cost advantage of producing on a large scale. As output increases the unit cost decreases.

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The relationship between the business and the customer that puts the customer’s requirements at the centre of the operation to build brand loyalty.

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Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials

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Continually working to reduce the resources used to create products: raw materials, labour, machines and premises

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Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers.

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Contracting another business to carry out some of the business’ activities, often to reduce costs.

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A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.

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