Business Unit 1 Flashcards
Primary Sector
Primary sector: business operating in the primary sector are invoked with extraction, harvesting,mining,forestry and oil extraction
Secondary Sector
Secondary sector: are businesses that are involved with manufacturing or creating a product.
Tertiary sector:
Tertiary sector: services for the general puvlic
Quaternary sector:
Quaternary sector: are a subcategory of teratory and involved are involved intelligence (ex Ia, tech etc)
Quaternary sector: are a subcategory of teratory and is involved in intellectual, knowlege based activtiies that egnerate and share information
Private sector: Public sector: Sole trader
Private sectors: are owned by private individuals
Public sectors: are owned under the government
Sole trader: someone who runs thier company by themself
:
Limited liablity company:
Private limited company:
Public limtied company:
Limited liability company: shareholders do not stand to lose personal belonging if company goes bankrupt or needs to pay debt
Private limited company: is a company that cannot share capital from the general public
Public limited company: it cansells its shares to the general public
Limited liablity company:
Private limited company:
Public limtied company:
Limited liability company: shareholders do not stand to lose personal belonging if company goes bankrupt or needs to pay debt
Private limited company: is a company that cannot share capital from the general public
Public limited company: it cansells its shares to the general public
Social enterprise
Social enterprise: are revenue streaming business with social objectives at the core of thier operations
Public and private partnerships
Public-private partnership (ppp). Occurs when the government works with a private sector to jointly
Aims:
Aims: are the general and long term goals of an organization
Objective
Objective: short-medium term goals of an organization and the organization takes specific steps to achieve it.
Objectives are specific objectives required to achieve the organisation’s desired aims, defined in measurable outcomes.
Strategis
Strategies: are short-medium term actions to achieve the strategic objective of the organization
Operation straegy:
generic strategy:
Corporate strategy:
operation strategy: are the day to day methods
Generic strategy: are those that affect the entire org
Corporate strategy: are targeted at long term objective
Tactical objective:
Tactical objectives: are the short term goals that affect a section of the business (up to 12 months)
Strategic objective
Strategic objective: refer to the long term goals of an organzation
Market standing
Market standing: refers to the extent of which a business has presence in the industry
Corporate culture:
Corporate culture: the accepted norms and customs of a business
Ethics
Ethics: are the moral principles that guide desicion-making and strategy
Business ethics
Business ethics:is the actions and organization
What is CSR
Socially responsible business( SRS): are Business that act morally towards thier skate holders
Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders
And Corporate socal responsibility( CSR) are the obligations help from the socially responsible business
Swot analysis:
study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
Strength
Weakness
Opportunities
Threats
Exterbal factors that present chances for business are called opportunities, such as lower tax. And external factors that can cause harm are called threats such as ressicon.
The advantage of steeple analysis is that is it quite simply to use and the analysis helps mangers to eb through and logical in their analysis of the et=xternal oppoorutines and threats faced by the business
ansoff Matrix
Ansoff Matrix: is a analytical tool that helps managers to choose and devise various product and market growth
Market Penetration (lower left quadrant). This is the safest of the four options. …
Product Development (lower right quadrant). …
Market Development (upper left quadrant). …
Diversification (upper right quadrant).
Business must have SMART objective:
Business must have SMART objective:
Specific
Measurable
Achievable
Realistic
Time constrained s
Skateholders are:
Skateholders is any individual, group or organization with a direct interest in and is affected by the actiiities and preorfmacne of a business.
Internal vs external skateholders:
Internal stakeholders: ar emmebers of the organzation.
External stakeholder: do not form part of the business nit have a direct interest or involvement in the organization.
who are shareholders
Shareholders : limited liability company are owned by skatholder. This stakeholder group invests money in a company by purchasing its share. Stockholders have voting right and how a say in how the company is run. Shareholders have two main objectives: to maximise dividies, to achieve capital gain in the valu of the shares.
Skateholder conflict:
Stakeholder conflict: refer to the inability of an organzation to met all of its skateholder objectives simultaneously, due to difference in the vayring needs of all its stakeholders.
Steeple analysis:
Refers to Socia, Techonoliigcal, Economic,Envirmental,Political,Legal and ethical oppoturintes and threats of the external business evnirment.
Protectionist measure
Protectionist measures: protects domestic business from forgein competitiveness
Exchange rate
Exchange rate: measures the value of the domestic currency to the forgein one
Economies of scale and types
Economies of scale are the advantages that can sometimes occur as a result of increasing the size of a business.
Marketing economies of scale
Financial Economies of scale
Managerial economies of scale
Human resources economies of scale
Network economies of scale
Marketing economies of scale: These refer to the cost savings that a company can achieve through larger marketing budgets. For example, a company with a large marketing budget can negotiate lower advertising rates, or can more easily spread its brand message through a larger network of media outlets.
Financial economies of scale: These refer to the cost savings that a company can achieve through better access to financing and lower borrowing costs. For example, a larger company may be able to secure a lower interest rate on a loan due to its higher creditworthiness.
Managerial economies of scale: These refer to the cost savings that a company can achieve through more efficient management practices. For example, a larger company may be able to spread its management costs over a larger number of units, making each unit more cost-effective.
Human resources economies of scale: These refer to the cost savings that a company can achieve through more efficient utilization of its human resources. For example, a larger company may be able to spread its human resources costs over a larger number of employees, making each employee more cost-effective.
Network economies of scale: These refer to the cost savings that a company can achieve through increased network effects. For example, a company with a large network of suppliers may be able to negotiate better prices for raw materials, while a company with a large network of customers may be able to negotiate better prices for its products.
- Purchasing
Firms might be able to lower average costs by buying the inputs required for the production process in bulk or from special wholesalers. By negotiating with suppliers for volume discounts, the purchasing firm takes advantage of economies of scale.
- Managerial
Firms might be able to lower average costs by improving the management structure within the firm. The firm might hire better skilled or more experienced managers.
- Technological
A technological advancement might drastically change the production process. For instance, fracking completely changed the oil industry a few years ago. However, only large oil firms that could afford to invest in expensive fracking equipment could take advantage of the new technology.
Formula for average cost, fixed cost and variable cost.
The average cost: is the cost per unit of output. The average cost consist of the average fixed cost and variable cost. The AFC = TFC /Q. The average variable Cost = TVC / Q
