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Division of labor is when the production process is divided into different tasks and each worker performs one of these tasks. Specialization- concentrating on a particular task or job.   Example Specialization and division of labor can be applied in the production of pins. First worker draws out the wire, second worker straightens the wire, third workers cuts the wire, fourth worker points the wire and fifth worker grinds the wire at the top of receiving the head.   Advantages of specialization and division of labor ·        More goods and services can be produced - when workers become specialized in the jobs they do, doing the same work again and again increases the skill and speed of the worker. It leads to increase in efficiency and output. ·        Full use is made of everyone’s ability- if the specialization and division of labor is used in the production there is greater chance that people will...

Stages of production (levels of business activity) 1. Primary production This stage involves the extraction of natural resources from the earth. The activities in primary sector include fishing, farming, forestry and mining.         2.  Secondary production     This stage involves taking the materials and resources provided by the primary sector and converting them into finished goods.    Activities in the secondary sector of industry include construction, manufacturing and baking.       3.  Tertiary production This stage of production involves providing services to both consumers and other businesses. Activities in tertiary sector include shops, restaurant, bank, cinemas and airline.                    Please Watch this video relating to the different business sectors ...

Why some businesses grow?   Benefits o    The possibility of higher profits for the owners. o    More status and prestige for the mangers and the owners – high salaries are often paid for managers and owners who are in a bigger firm. o    Can achieve economies of scale. o    Growth of a business often means that it controls a larger market share of its market- can dominate the market. o    Protection from the risk of takeover- the larger the business, the more difficult and expensive it is for this to happen because a greater number of shares must be bought.   Drawbacks o    Diseconomies of scale. o    Cultural clash due to takeover- differences in objectives and difference in management style may fail the business. o    Integration of firms may lead to lose control of the business for the original owner. o    Loss of jobs due to merger and takeover could damage re...

Quality is ensuring a good or service that meets the needs and requirements of its consumers. Quality means free from defects. Business usually finds about the needs and requirements of consumers through market research. Once they know what these needs are the business can set the quality standards that are expected by the consumers. Quality standard is the minimum acceptable standards of production or service acceptable to consumers. Quality standards can be divided into two. They are 1.      Design standards – it helps a business create the best possible products, which consumers find more valuable than other products in the market. 2.      Process standards – it helps a business to produce its goods and services at a lowest cost. Combination of both quality standards helps a business to gain a competitive advance and market share.   The importance of quality to all businesses Quality is important to businesses because it help...