business Flashcards
external environment
involves the impact of the surrounding factor of a business. It has minimal control over. Such as operating and macro
macro environment
has no control. Such as legal and government regulations
operating environment
has some control. Such as special interest groups
legal and government regulations
rules and laws made by government and laws that help a business:
- employment regulations
- industry regulation
- environmental regulations
triple bottom line
SEE
business planning that incorporates economic, environmental and social aspects
customer expectations
Customer satifsfaction which grows loyal customers
customers expect high quality products. if not adhere to those aspects, customers might not return
special interest groups
various groups that influence the activities and planning of a business.
E.g - unions
- business associations
- environmental lobby
groups
economic conditions
TECI
the financial and productive performances side of the business. such as these four elements.
E.g. - tax rates
- employment rates
- consumer confidence
- interest rates
global markets
a business needs to consider global issues such as:
- overseas competitors
- overseas markets
global consideration
COM
factors that a business may need to consider when interacting with suppliers or customers overseas.
E.g - competitors
- offshoring of labour
- markets
CSR
is to be in a ethical work environment how to do good and stop bad
When a business needs to consider the impact of the community and to give up and above the legal requirements.
E.g. - paying above the amount
of award
- community sponsorship
supply management
the act of acquiring, managing resources and suppliers
out sourcing
having people handle resources or work offshore
societal behaviours and altitudes
when planning a business, a business should consider the social factors such as values e.g. religious diversity and trends e.g. clothing trends
When planning a business the business owner will need to consider changing social values, beliefs and trends. Why?
Too consider competitors work and gain a competitive advantage
disadvantages and advantages of CSR
Advantage:
- increase employment
- supports local and global community
disadvantage:
- impact on public image
- CSR Costs Money to Implement
importance of supply management
keeps the mechanisms of supply and demand operating smoothly so that people have access to goods and services
explain two external factors
macro- technological
operating - suppliers
Motivation
is what drives the employee to put effort into the job/career
intrinsic ( internal)
extrinsic ( external)
personal motivation
the personal motivation to start a business is for independence and freedom
source of business opportunities
- market oppo- demands
- changing customer needs
- research and development
ideas come from:
- family
- personal inspiration
- looking overseas
business concept
when a specific direction allows the operation of a business
market research process of systematically
recording and analysing information
. social responsbility
. infrastructure
intellectual property
any creation of the mind such as new invention, a brand that a business has full rights over
protect intellectual property
trademark- a right grant to represent products and services
patent- a right granted
domain name- a registered name
feasibility study
an assessment of the business ideas potential success
location
market
competition
support for innovation and entrepreneurship
government investment
council grants
SWOT analysis
a business plans
strengths: IP and staff
weakness: debt and customers
opportunities: changing a trend in a market
threats: competitors
CSR
an ethical conduct beyond legal obligations
internal: happiness and satisfaction
external: the fair trade products
employees: reducing carbon footprint and improving labour policies
businesses models
a business model outlines a business plan of how it will function and make a profit
. online business
. direct to consumer business
. bricks and mortar
support services
it may be difficult for owners to be knowledge so the will utilise assistance to help operate their business
. legal support services- legal assistance
. financial support- accountants
. technological support- It
source of finance
business owners should consider how they will fund their business operations. there are various source of finance available to owners
.overdraft
. trade credit
. loan
. lease
. debt
Social enterprise
is an organisation that improves to maximise and promote the social, environmental and financial factors of a business such as charity
market research
is a process of systematically collecting, recording and analysing information concerning a specific market
contributions business makes
contributions business make to the economic and social wellbeing
. GDP
.employment
. infrastructure
SMART GOALS
S- specific
M- measurable
A- achievable
R- relevant
T- time bound
Internal business
involves factors within a business that a business has control over
- business location
- business support services
- resources
- source of finance
Types of businesses
when planning, owners must consider and decide on what type of business they want.
- partnership
- sole trader
business resources
capital- man made goods
labour - that conduct the business ( employment)
natural- raw materials from the environment
supply management
the act of identifying, acquiring and managing resources and suppliers that are essential to the operations of a business organisations
gap in the market
an area that businesses don’t currently serve however, there is customer demand for
public listed
A public company is a company whose ownership is organised via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets
private listed
A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges
establishing a business
when individuals with innovative ideas start a business that is not yet present in the market.
adv:
- owners had full decision making
disadv:
- difficulty in making a customer base
purchasing a business
to buy a business that is directly set up and operating.
societal attitudes and behaviours
when planning a business should consider the social factors such a beliefs and values.
Values:
- culture diversity
trends:
- clothing
