1.1 into do business Flashcards
stakeholders
any individual or group affected by an organisation
entrepreneurs
a person who organises human, physical and financial resources to start a business
input of a business
resources needed to create a product
can be physical, financial, human
physical resources
the raw materials and semi-finished goods that a business needs to begin production
financial resources
the funds needed to set up and invest a business and keep it running. - can be short term, medium term and long term
long-term financing
involves large sums of money borrowed for a long time. may be used to build a factory or office
short term financing
smaller amounts of money that is used to pay for inputs that will be turned into products sold- like products in stock
human resources
people needed to run the business- managers and employees + enterprise
enterprise
process of taking risks to combine the other resources to create goods or services
4 main processes
human resources management
finance and accounts
marketing
operations
HR
manages employees, ethics,
finance and accounts
ensure that the business has enough money to carry out its activities
marketing
selling the right product at the right price, to the right customers, at the right time
operations
refers to how activity is carried out. operations must plan how and in what quantity goods and services are to be produced
types of outputs
goods- tangible, physical
services- intangible, cannot be touched
feedback
feedback is important to tell the business how they must improve. both with critiques and reinforcing people to go in the same direction
revenue
income that the business gets
profit
revenue - expenses
doughnut economics model
outlines the social foundation ( human needs) and ecological ceiling (planetary boundries) that economic activity needs to respect to find the safe space for hummanity. it is necessary to protect our earth while also meeting human needs
ecological ceiling
human disturb the earths system when getting their resources
social foundation
what humans need, like housing and networks, social equity. - not being met
sustainability
meeting the needs of all within the means of the planet
economy
a system for producing and distributing goods and services among a group of people. Businesses are part of that system.
4 main sectors of economy
primary secondary, tertiary, quaternary
primary sector
extraction and production of raw materials from earth
secondary sector
manufacturing and processing, where raw materials are made into products for sale
tertiary sector
any business that sells services like healthcare, transportation
quaternary sector
part of tertiary sector , The area of economic activity involved with knowledge and the movement of information.
supply chain
steps involved in creating products
integrated businesses
businesses that involve 2 or more sectors
work of enterpreneurs
understanding communities and their problems
desighning and planning solutions
taking and sharing and growing actions and ideas to increase impact
intrapreneur
A person who develops new ideas, processes or products for a business in which they already work.
reasons for starting a new business
- new business idea for a new product
- passion to make a change
- market need
- earning a living
- get greater financial reward
- control over their own work
- work life balance- freedom
challenges of starting a new business
- lack of funds, underestimade necessary to sustain operations
- strong competition
- market too small- market orientation
- unskilled employees or lack of collaboration
- poor managing skills
-economic, enviormental or political schocks
steps to start a new business
- refine the idea
- prepare a business plan
- decide a legal structure (partership, corporation)
- register the business
- find a location
- hire employees
- get funding or loans
SWOT
simple tool for a business to analyse its internal strength and weaknesses, and external opportunities and threats
internal factors
strength and weaknesses
external factors
opportunities and threats’
factors outside organizations control
STEEPLE framework
provides a useful way to remember the external factors that can effect a business
Sociocultural
Technological
Economic
Enviormental
Political
Legal
Ethical
business plan
document that plans a range of formal and informar purposes of the business. usually provide a story for the audience and evidence to win over audience
how and what why
primary research
Research (in a market) that involves creating new information that is gathered through surveys, interviews, observations, focus groups, camera studies or other methods.
secondary research
Research that involves using evidence (about a market) gathered by others.
quantiative data
information that ccan be counted and has a numerical value
qualitative data
non-numerical data that describes qualities or characteristics
