Chapter 5 CON.

Question 1

what are the 5 business models

Answer 1

-online business
-bricks and mortar business
-social enterprise
-franchise
-importer and exporter

Question 2

online business

Answer 2

is any business that uses the internet to sell its products, services or its advertising online

Question 3

what are the seven online business models

Answer 3

-advertising model
-affiliates model
-brokerage model
-information model
-subscription model
-merchant model
-community model

Question 4

pros and cons of online business model

Answer 4

pros:
-can reach customers around the world 24/7
-can advertise the business and its goods/ services
cons:
-may be expensive
-can increase competitive pressure for businesses

Question 5

bricks and mortar business

Answer 5

refers to the traditional business model that is based on a store with physical presence, such as those located in shopping centers and on shopping strips

Question 6

pros and cons of bricks and mortar business

Answer 6

pros:
-higher visibility
-face-to-face interaction
cons:
-can be very expensive
-may be limited by opening hours

Question 7

social enterprise

Answer 7

a private sector business that distributes profit to benefit the community rather than the individual shareholders, to improve the wellbeing of others through its business activities

Question 8

pros and cons of social enterprise

Answer 8

pros:
-positive impact on people and the environment
-produce, without creating the same harm.
cons:
-difficult to obtain capital
-significant operating costs

Question 9

franchise

Answer 9

is an arrangement that allows a person without a product, idea, name or trademark to grant certain rights and info to another person to use the business name and sell its goods/ services

Question 10

pros and cons of franchise

Answer 10

pros:
-known business name and reputation
-established customer base
cons:
-establishment costs expensive
-no freedom or control

Question 11

import and export business

Answer 11

generates revenue by trading goods internationally

Question 12

pros and cons of import and export business

Answer 12

pros:
-expand sales
-improve material living standards
cons:
-additional costs
-quite risky

Question 13

what are the three levels of planning

Answer 13

strategic planning
tactical planning
operational planning

Question 14

strategic planning

Answer 14

formal, long term (2-5 years) planning which establishes the overall direction of the business.
completed by senior managers.

Question 15

tactical planning

Answer 15

planning that focuses on how to allocate resurces and establishing goals within each functional area to achieve long-term strategic objectives. (1-2 years medium term)
completed by middle managers (functional managers)

Question 16

operational planning

Answer 16

day-to-day and weekly production schedules and plans for small teams or individual employees
(short term day-to-day planning-up to 6 months max)
completed by lower managers, front line managers or supervisors

Question 17

what does the planning process DADIM stand for

Answer 17

-Define the objective
-Analyse the environment
-Develop and evaluate alternative strategies
-Implement an alternative
-Evaluate, monitor and review

Question 18

what is a SWOT analysis

Answer 18

a planning tool which identifies the businesses internal strengths and weaknesses, as well as any opportunities and threats from the external environment

Question 19

what does SWOT stand for

Answer 19

strengths
weaknesses
opportunities
threats

Question 20

what is a business plan

Answer 20

a written statement of the goals and objectives of the business, and the steps/strategies to be taken to achieve them

Question 21

what do business plans typically include

Answer 21

marketing plan
executive summary
operations plan
financial plan

Question 22

benefits of developing a business plan

Answer 22

-identifies strengths and weaknesses of the business
-forces owner to justify plans and actions

Question 23

how can a business demonstrate CSR

Answer 23

-monitoring environmental impact
-fair pay and safe working conditions for staff
-sourcing fair trade materials

Question 24

triple bottom line

Answer 24

an accounting framework that incorporates three dimensions of performance
social
environmental
financial

Question 25

benefits of CSR

Answer 25

-attract more customers
-retaining talented staff
-attract the brightest and most talented people

Question 26

costs of CSR

Answer 26

-extremely expensive
-invest in employee training which could be expensive
-cost disadvantage compared to rivals outsourcing