The Business Framework

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  • The Business Framework
    • Why do Businesses start?
      • Motives
        • profit
        • Personal Satisfaction
        • Need a challenge
        • Provides a job
        • Legacy
      • Enterprise- Process by which new businesses are formed.
      • Entrepreneur- a person who have an idea and develop by setting up a business.
      • Factors of Production
        • Capital
        • Labour
        • Enterprise
        • Land
      • Functions of an Entrepreneur
        • Take risk
        • Show initiative
        • Be innovative
        • Find and combine human, physical and financial resources
    • Business Functions
      • Key Functions
        • Finance
          • Responsible for money coming in and out of the business.
        • Administration and ICT
          • Responsible for the paperwork side of the business.
        • Human Resources
          • Responsible for calculating the number of staff required.
        • Marketing
          • Responsible for establishing the potential demand and making customers aware.
        • Operations
          • Responsible for the production of the product.
      • Functional Variation
        • Size and scale
        • Activities of business
        • Preference of owner
        • Needs of customers
        • Type of customers
    • Business Aims and Objectives
      • Mission Statement- brief representation of the objectives a business or organisation has.
      • Aim- long term goals of the business.
        • Sales growth
        • Expansion
        • Survival
        • Customer satisfaction
        • Profit maximisation
        • Providing a service
      • Importance of aims
        • To provide focus and direction
        • To ensure everyone has a common aim
        • To allow businesses to develop their objectives
      • Objectives- stated measurable targets of how to achieve its aims.
        • SMART objectives
          • S- Specific
          • M- Measurable
          • A- Achievable
          • R- Realistic
          • T- Time specific

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