Unit 1: Setting up a Business (2)
- 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...
- Costs
- 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.
- Franchises
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