unit 1 business

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  • 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
    • 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

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