Chapter 5 CON. Flashcards
what are the 5 business models
-online business
-bricks and mortar business
-social enterprise
-franchise
-importer and exporter
online business
is any business that uses the internet to sell its products, services or its advertising online
what are the seven online business models
-advertising model
-affiliates model
-brokerage model
-information model
-subscription model
-merchant model
-community model
pros and cons of online business model
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
bricks and mortar business
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
pros and cons of bricks and mortar business
pros:
-higher visibility
-face-to-face interaction
cons:
-can be very expensive
-may be limited by opening hours
social enterprise
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
pros and cons of social enterprise
pros:
-positive impact on people and the environment
-produce, without creating the same harm.
cons:
-difficult to obtain capital
-significant operating costs
franchise
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
pros and cons of franchise
pros:
-known business name and reputation
-established customer base
cons:
-establishment costs expensive
-no freedom or control
import and export business
generates revenue by trading goods internationally
pros and cons of import and export business
pros:
-expand sales
-improve material living standards
cons:
-additional costs
-quite risky
what are the three levels of planning
strategic planning
tactical planning
operational planning
strategic planning
formal, long term (2-5 years) planning which establishes the overall direction of the business.
completed by senior managers.
tactical planning
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)
operational planning
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
what does the planning process DADIM stand for
-Define the objective
-Analyse the environment
-Develop and evaluate alternative strategies
-Implement an alternative
-Evaluate, monitor and review
what is a SWOT analysis
a planning tool which identifies the businesses internal strengths and weaknesses, as well as any opportunities and threats from the external environment
what does SWOT stand for
strengths
weaknesses
opportunities
threats
what is a business plan
a written statement of the goals and objectives of the business, and the steps/strategies to be taken to achieve them
what do business plans typically include
marketing plan
executive summary
operations plan
financial plan
benefits of developing a business plan
-identifies strengths and weaknesses of the business
-forces owner to justify plans and actions
how can a business demonstrate CSR
-monitoring environmental impact
-fair pay and safe working conditions for staff
-sourcing fair trade materials
triple bottom line
an accounting framework that incorporates three dimensions of performance
social
environmental
financial
benefits of CSR
-attract more customers
-retaining talented staff
-attract the brightest and most talented people
costs of CSR
-extremely expensive
-invest in employee training which could be expensive
-cost disadvantage compared to rivals outsourcing
