Andministration

Question 1

What is the repeatable process of a business?

Answer 1

1. Creates and deliver something of a value.
   - The toy company creates fun building blocks.
2. That other people want or need.
   - Parents want toys that are safe and help their kids learn while playing.
3. At a price they are willing to pay.
   - The company sells the building blocks for $10, which parents think is a good price for quality toys.
4. In a way that satisfies customer’s needs.
   - The toys are fun, safe, and easy to buy, making parents feel good about their choice.
5. That brings a profit.
   - The company makes a profit of $5 on each sale.

Question 2

What are the customer goods?

Answer 2

The physical and tangible goods sold to the general public.
- Durable
- Non-durable

Question 3

What are the customer services?

Answer 3

Non-tangible: products that are sold to the general public and include. (Help and support)
- Networking services, logistic, social media, etc.
e.g. When you go to a restaurant, the waiter helps you choose what to eat and makes sure you have everything you need

Question 4

What do business do?

Answer 4

Provide goods or services.

Question 5

What are the 5 industry sectors?

Answer 5

1. Primary: the EXTRACTIVE INDUSTRY. Produce or extract raw materials (agriculture, mining extraction, farming).
   - Like PEMEX oil extraction or Pilgrim’s pride chicken farm.
2. Secondary: process raw materials into manufactured goods and products (manufacturing, oil refining, food processing).
   - Like a car company, PEMEX gasoline refinery or wine producer.
3. Tertiary: the SERVICE SECTOR involve selling good and services from primary and secondary industries (health services, education, tourism, retail).
   - Like UCO, PEMEX gas station, Walmart or chilis.
4. Quaternary: industries providing inform or digital services (consultancy, communication or computing).
   - Like Social media or Megacable.
5. Quinary: services that focus on the creation, re-arrangement and interpretation of new and existing ideas.
   - Like music, movies or series.

Question 6

Differences between for profit and non-profit

Answer 6

NON-PROFIT CAN OAY SALARIES TO THEIR EMPLOYEES AND FOCUS IN REINVESTING SURPUS REVENUES TO SUPPORT THEIR MISSION.

Question 7

What is a business model?

Answer 7

Description of what a business make and how they make money. It’s an explanation of how you deliver value to your customers at an appropriate cost.

Question 8

What are the 4 interlocking elements that create and deliver value?

Answer 8

1. Customer value proposition (CVP): the way you create value for customers and the way you solve a customer’s problem.
   -Like a Deluxe hamburger VS McDonald’s.
2. Profit formula: how you will make profits for your company while still providing value to the customer.
   - Like Ford VS Ferrari.
3. Key resources: assets like the people, technology, products, facilities, equipment, channels, and brand required to deliver the value proposition to the targeted customer.
   - Like a Hotel VS hostels.
4. Key process: process that allow to deliver value in a way that can be successfully repeated and increased in sale.
   - Like Starbucks VS a coffee shop.

Question 9

Types of business model

Answer 9

Question 10

What is the business legal structure?

Answer 10

The FIRST step in setting up a new company is defining how the company should be structured.
- Nature of your business: what is about
- Vision: how do you see in the future
- Level of control you wish to have: your role
- Tax implications
- Expected profit: the structure that controls.

Question 11

Types of business structure

Answer 11

Question 12

What are the business functions?

Answer 12

• Essential activities that different departments or areas of an organization perform to contribute to the overall operation and success of the company.
• Each function has a specific role and responsibility, ensuring that the business runs smoothly, meets its objectives, and creates value for its customers.

Question 13

Types of business functions departments

Answer 13

PROCUREMENT: OVERSEES THE ACQUISITION RAW MATERIAL AND SERVICES.

Question 14

What does factors affecting business do?

Answer 14

If a business wants to be successful in the marketplace, it’s necessary to understand what factors apply impact on the development of their company.

Question 15

What are the internal environmental factors?

Answer 15

Refers to anything within the company under the control of the company no matter whether they’re tangible or intangible.

Question 16

Types Internal environmental factors

Answer 16

Human resources: people who work in a business organization. The performance of a business is affected by the quality and impact of the people who work for it.
- EMPLOYEES: influence a business through their productivity, ability to satisfy customers, absenteeism, ability to perform the job, training and industrial action.
- MANAGERS: influence a business through their decision-making, creating policy, hiring and firing employees, setting budgets and conducting appraisals with staff.
Finance: a business needs adequate funds in place in order for it to survive and grow successfully. All changes in order to reach customer needs and expectations need investment. Without the proper finance, a business will be held back and will eventually struggle to survive.
- Developing new products, upgrading new software, a wage rise for existing employees, hiring new staff, buying new machinery and equipment, an advertising campaign for a product, extending existing premises, buying a new fleet of vehicles, opening a new branch.
Technology: to ensure efficiency and also to boost its profile. Businesses need up-to-date technology to keep up with customers’ ever-changing requirements.
- Communication hardware, communication software, specialist software, access and control of social media, apps.

Question 17

What are the external environmental factors?

Answer 17

Refer to external elements affecting factors, outside and under NO control of the company.

Question 18

Types external environmental factors

Answer 18

PESTEC
- Political: new legislation
- Economic: inflation and unemployment
- Social: changes in taste and fashion or the increase in spending power of one group
- Technological: being able to sell goods online or using automation in factories
- Environmental: weather conditions affecting sales or production and growing interest in being ‘green’
- Competitive: the impact of a rival firm which may have a similar product or which may lower its prices