Edexcel Business A Level Revision

Competitive advantage - An advantage over the competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher price. Distinctive Capabilities - Proposed by Professor John Kay in 1993. The capabilities or special quality a business has which is product of the people employed there, which other firms cannot replicate even after they realise what the benefits are that owning the capability confers. For example, Land Rover's distinctive capability is its mastery of how aluminum can be used to build cars that are string but light. From this, can create a competitive advantage. For Land rover, the benefit has shone through in its Evoque series, which benefits hugely from an aluminum frame. That can feed through to an especially positive consumer image - for technology perhaps, or like Apple, for great design. For example, James Dyson's creation of a unique bag-less vacuum cleaner gave th...

Motivation - the will to work or ways in which businesses can encourage staff. Motivation comes from enjoyment of work itself and/or from desire to achieve certain goals e.g. earn more money or achieve promotion. An engaged employees is one that has emotional commitment to the organisation and its goals. This means that engaged employees actually care about their work and their company and are motivated to contribute to the company's success. Motivated employees are generally thought to be more productive and better able to communicate and collaborate. Business managers try to meet employee's needs in a way that will enhance their performance and productivity, so maximising efficiency. There are two broad approaches available to motivate employees FINANCIAL METHODS (salary, bonus) NON-FINANCIAL METHODS (passing on responsibility or praise) BENEFITS OF MOTIVATED STAFF INCLUDE: Higher labour productivity Lower labour turnover Higher retention rates Lower unit ...