AOS 1 Flashcards
business managers
individuals who run the business day to day
entrepreneurship
the process of establishing a business to satisfy a need in the market whilst taking on the associated risks
shared vision
a clear understanding of what the business will look like in the future
enterprise
able to come up with new ideas and improvements
characteristics of successful manager
- communication skills
- determination
- knowledge
- strong ethics
- flexibility
entrepreneur
an individual who starts up a business and takes on the associated risks in order to satisfy a need in the market
entrepreneur skills
- risk taking
- leadership
- innovation
- communication
- decision making
- networking
characteristics of successful entrepreneurs
- willingness to take calculated risks
- strong networking ability
- determination
- innovative qualities
- resourcefulness
- knowledge
personal motivation for starting a business definition
success or failure of a business depend on the owners abilities, resources available, ethusiasm, initiative, level of management expertise, motivation
extrinsic motivation definition
when motivations are made is due to what personal benefits may be received
extrinsic motivation examples
- awards
- public recognition
intrinsic motivation definition
when motivations are made from internal rewards, receiving something beneficial to you
intrinsic motivation examples
*doing something because it interests you
*doing something to benefit others
personal motivation for starting a business factors
- personal independence
- financial independence
- to make a profit
- to fulfill a market need
- to fulfill a social need
personal independence definition
an individual being in control of their own decisions and actions
personal independence examples
*work for themselves
* work where they want
*greater control
financial independence definition
the ability to fund a desired lifestyle without relying on income from another individual
financial independence examples
*dont have to rely on being paid by employer
* able to retire sooner
to make a profit definition
involves a business generating more revenue than expenses incurred
to make a profit example
*hopeful of eventual profits
to fulfill a market need definition
when a business fills a gap in market by addressing customer needs that’re currently unmet or unpresent in the same industry
to fulfill a market need examples
*recognising good/service are in demand but not available
* invention or development of new product
fulfilling a social need definition
improving society and the environment through business activities
fulfilling a social need examples
*preventing homelessness
*aiding disadvantaged individuals
sources of business opportunity factors
*innovation
*entrepreneurship
*market opportunities
*changing customer needs
*global markets
*research and development
*technological development
innovation defintion
creating and implementing new ideas or significantly improving upon an existing good, service or process
innovation examples
*fuel vehicles to electric vehicles
*reactive medicine to vaccines
*landline phones to mobile phones
business opportunity defintion
a favourable situation that can lead to improvements or success of a business
market opportunity definition
a need or want thats not currently being met by any business
market opportunity examples
*something missing
gap in the market definition
something that’s currently not being fulfilled within the market
changing customer needs definition
the transitions in the desires of consumers
changing customer needs factors
*convenience
*technology
*trends
*ethical behaviour
research and development definition
activities undertaken to improve existing products, create new products or improve processes
technological development definition
the invention and innovation of tools that solve problems and enhance processes
technological development examples
*online shopping
*smartwatches
*click and collect
global markets defintion
the area in which businesses trade goods and services, compromised of both businesses and customers from countries all across the world
business goals definition
describes what a business expects to accomplish over a set period of time
business goals examples
*provides a sense of direction
*helps measure results
*helps generate new ideas
business strategies strategies
a series of actions that a business will implement to achieve its goals
goal setting is broken into:
- mission statement
2.vision statement
mission statement defintion
description of what the business does and how it will achieve its goals
vision statement defintion
description of whether business wants to get in specific time period
process of setting goals
smart goal
smart goal meaning
Specific
Measurable
Achievable
Relevant
Time bound
types of goals listed
*finance goals
*social goals
*personal goals
return of investment defintion
the net profit divided by investment cost, demonstrated as a percentage
market share definition
the portion of the market controlled by a company or product
finance goals examples
*make a profit
*increase sales
*increase market share
*expand business
*maximise of return on investment
*improving way business operates, effectiveness and efficiency
social goals examples
*sponsorship
*provision of employment
*social justice
personal goals examples
*higher income
*improved financial security
*motivation for business owner
decision making definion
is the process of identifying the options available and choosing a specific course of action. DON’T USE THE WORD DECISION WHILST DEFINING
process of decision making
DODSE
DODSE explained
- Define the objective
- Outline the facts
*Develop several solutions - Select the preferred alternatives and implement
- Evaluate effectiveness of the solution
business concept development definition
a brief outline of the business idea, main selling activities and the features that’ll provide it with a competitive advantage. MUST IDENTIFY A GAP IN THE MARKET
protecting business ideas listed
*trademark
*patent
*copyright
*domain name
market research definition
the process involving gathering and analysing info concerning the activities and behaviours of both the customers and competitors, within a specific industry
market research process
- identifying
- gathering
- analysing
market research questions definition
market research seeks to gather both quantitative and qualitative data, providing potential business owners understanding as to whether or not the business is viable
quantitative data defintition
numerical data such as figures and statistics
quantitative data examples
*how many competitors are in the market
*what prices are customers are willing to pay
qualitative data defintion
non-numerical data such as opinions or written survey responses
qualitative data examples
*what are strengths and weaknesses of competitors
*what’re customers looking for in their products
initial feasibility study defintion
a researched evaluation of how viable a business concept is
areas of feasibility to consider
*market feasibility
*operational feasibility
*commercial feasibility
*technical feasibility
*legal feasibility
market feasibility defintion
using market research to develop an understanding of the market conditions
market conditions defintion
factors that make up and influence an idnustry
operational feasibility defintion
research into what kind of employees will be required, what equipment is needed and how available both these resources will be
commercial feasibility definition
is broken into 2 groups.
- entrepreneur must be able to afford initial costs of setting up the business
- business manager must also be able to identify if the industry and its consumers are willing to support the business
technical feasibility defintion
examines the current skills of potential business owners and abilities to help the business achieve its goals
legal feasibility defintion
business owner will need to understand all associated legal regulations when it comes to starting a business
legal feasibility factors
*permits
*qualifications
*taxes
how businesses contribute to the nation defintion
businesses in aus make a significant contribution to the nation. both to the economic and social wellbeing.
businesses contributing to the nation is broken into
- Economic wellbeing
2.Social wellbeing
economic wellbeing defintion
the level of income, consumption and wealth people/households have to support their living standards
economy defintion
a system set up to determine what to produce, how to produce and how production is distributed
economic wellbeing is divided into
*employment opportunities
*taxation revenue
*infrastructure
*economic growth
*international trade
*research and development
employment oppurtunities defintion
derive from businesses requiring labour to produce goods and services
taxation revenue defintion
a compulsory payment to the government, used to finance the provision of public goods and services
economic growth defintiion
the total value of growth and services produced by an economy increases over a period of time
international trade defintion
the exchange of goods and services between countries
research and development defintion
directing resources such as money towards discovering and creating new products and processes
social wellbeing definition
a measure of the quality of life individuals have, reflected by their non-material living standards
non-material living standards defintion
non physical factors influenced by quality of life experienced by individuals
business innovation and entrepreneurship defintion
innovation and entrepreneurship are the 2 major influences on aus economic growth
business innovation and entrepreneurship can be undertaken through:
*research and development
*council grants
*regional start-ups
*school-based entrepreneurial programs
government investment in research and devlopment
research and development is an expensive and time consuming process
government initiatives listed
*innovation connections
*research and development tax incentive
*accelerating commercialisation
council grant defintion
a one off financial payment from a local council to a business
school based entrepreneurship programs
can help introduce students to the business world, allowing them to develop business knowledge and problem solving skills
regional start up hubs defintion
physcial spaces that individuals and businesses can utelise in order to have office facilities to work in, or to obtain support regarding business matter
subsidy defintion
financial payment from government to individuals or business’ to promote specific behaviour
