chapter 3- opportunities, legal and ethical considerations. Flashcards
How opportunities arise 1?
Changing needs and wants for product and service.
How opportunities arise 2?
Development in technology
How opportunities arise 3?
Changes in ability to meet needs or wants. eg
- access to equipment
How opportunities arise 4?
Changes in government policies.
- availability of grants, subsidies and taxation laws.
Risks
The chance of gaining or losing something as result of and action taken.
Managing risk
Financial risk - having access to sufficient finance or what to do about unexpected costs.
Economic risks - what to do about changes in income, customers tastes or interests
Managing risk 2
Health and safety and environmental risks- how laws and regulations affect what or how you operate.
Human resources risks- having the right skills and the number of people in the enterprise.
Production risks- access to the right materials, or what to do if a machine.
The stages of risk management pg 37
- Identify the risks
- Analyses the implications of each risks.
- Is the risks worth taking- No? - > then stop the proj.
- Plan how to manage the risk.
- Monitor and review
Pest Analysis_ 38
Political factors.
Economic factors.
Social factors.
Technological factors.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Attitudes to risk 1
Risk- averse: Someone who will attempt to avoid any possibility.
Attitudes to risk 2
Risk- keen: Someone who is willing to accept a level of risk.
Attitudes to risk 3
Risk-reducer: Someone who will attempt to limit the likelihood and amount of possible risk.
Legal obligations: pg 43-44
Employment:
Production:
Marketing and selling:
Finance:
Ethical consideration: pg 45
Moral values and principles that govern person’s behavior or the conducting of an activity.
