Unit 1: Setting up a Business (2)

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  • Created by: jj_123
  • Created on: 01-05-15 09:26
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  • Unit 1: Setting Up A Business
    • Franchises
      • The right to sell another firms product in return for a fee.
      • Advantages: Benefit from central services (marketing and training), sell already recognised and successful product.
      • Disadvantages: Lack complete ownership, could lose franchise, some of revenue is paid to franchisor.
      • Franchisor Pros: Increase market share.
      • Franchisor cons: Brand could get bad reputation if a franchisee has poor standards.
    • Aims
      • Survival
      • Profit
      • Growth
      • Market Share
      • Environmental Sustainability
      • Customer satisfaction
    • Objectives
      • Help business achieve their aims, but are more specific.
      • Are used to measure business success.
      • Numerical targets: Can measure how well it has met these targets.
    • Business Risks
      • Business failure
      • Loss of earnings
      • Shrinking market
      • Loss of market share.
    • Stakeholders
      • Individuals or groups with an interst in a business.
      • Internal: Owners and employees.
      • External: Customers, suppliers, local community and governement
      • Primary Stakeholders: Most important in the success of the business.
      • Secondary Stakeholders: Those which may affect the business.
    • Location of production
      • Costs
        • Rent/buy, wage level in area, transportation costs.
      • The market
        • How near to customer/competition
      • Infrastructure
        • Transport links, access for staff and customers, local services
      • Other factors
        • Planning laws, local council...
    • Business Plan
      • An outline of what a new business will do and how it aims to do it.
      • Can be used to convince financial backers.
      • At least 7 sections.
        • Personal Details
        • Mission Statment
        • Objectives
        • Product Descirption
        • Production Details
        • Staffing Requiremtns
        • Finance.

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