unit 1 business
- Created by: lulu22
- Created on: 20-04-15 19:37
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- Unit 1-Business
- Business 1
- Organising resources to achieve a reward whilst running a risk
- Business needs: money, storage, asset, petrol, electricity
- why people start a business: gap in market, help society, interest, no boss,sucessf-ul,make profit, problems, personal experiance
- entrepreneur; a individual with an idea for a busnies
- Primary sector: business that produces raw materials, Secondary sector: business that turns raw materials into products Tertiary sector: business that provides a service
- Gap in the market: Business opportunity that's a completely new idea or adds something different to an existing product
- Differentiation: stand out from rivals in a business
- Niche market: small group of people that share a similar need
- Business 2
- Franchise: the legal right to use the name, logo and product of an existing business
- Franchisor: business giving entrepreneurs permission to open a franchise
- Franchisee: entrepreneurs buying franchise of someone else's business
- Attracted to franchising: popular brand, already established, less financial risk, improvement
- Dis of buying franchise: don't have a say in products, pay a % of sales revenue to franchisor, other franchisors might give you a bad reputation if ran poorly
- ads of buying franchise: benefit from training, get to sell recognised product, benefit from experienced franchisor, already good reputation
- Business 3
- sole trader: owned by only 1 person
- Ads for sole trader: don't share profit, work hours that suit, full control
- Dis for sole traders: may not have all expertise, 1 person to invest all finance, unlimited liability
- Unlimited liability: personally responsible for its debts
- Partnership: business ran by 2-20 people
- Ads for partnership: more owners more expertise, improve ideas, more finance, can cover if absent
- Dis for partnership: unlimited liability, conflict, split profit
- limited liability: personal wealth protected
- Incorporation: legal process of forming a limited company
- ltd's: business owned by share holders who have limited liability
- ads of ltd's: no limit to amount of share holders, new members can raise finance, limited liability
- Dis of ltd's: profits slip, more rules and laws affect them, conflict and power struggles
- sole trader: owned by only 1 person
- Business 4
- Business objective: target for the business to achieve by a set date
- Survival: survives first 12 months
- Sales growth: increase number of sales each month
- Profit: achieve a target profit by end of the year
- Market share: increase amount of sales compared to competitors
- % of all sales in market against rivals
- Customer satisfaction: develop a reputation for good customer service
- Why set objectives? know what to improve, motivation, know roles, see if other recourses are needed
- Smart: specific, measurable, agreed, realistic, time-bound
- Business 5
- Stake holder: groups of people affect by actions of a business
- stakeholders can: strike, protest, boycott, petition, complain, quit
- Social enterprise: ran to help society
- Business plan: document outlining entrepreneurs to achieve their objectives
- Objectives: set a goal with a date
- Mission: what your aim is
- Competition: other competitors in your location affecting you
- Market environment: market your in
- Funding: money spent on business
- Products& services: what you supply
- Forecast: estimating money in the future
- who looks at business plans? entrepreneur to measure businesses performance, bank managers to sort bank loans, investors to check success
- Business 6
- Logistics: process of assembling raw materials a business needs and delivering products to customers
- Affect location: cost(rent/demand), customers(convenient), infrastructure(transport links), area(better image
- Market: place where buyers and sellers exchange goods for money
- Mail order: when goods are bought on catalogues or online and directly delivered to customers
- eg-location town centre: high footfall and popular- disadvantage- expensive, lots of rivals
- eg- location industrial estate- ads, cheaper, good infrastructure-disadvantage- less footfall, less conviinient
- eg.location village- ads, repeat customers, know target market-disadvantage- small target market, less footfall
- eg- location local market/fair- ads- cheaper than shop rent, loyalty- disadvantage- competition, cheaper sales
- eg.location home- ads- no rent just house fees, pick own hours-disadvantage-no footfall, no advertisement
- Business 1
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