Enterprise, Business Plans and Stakeholders.

Question 1

What is an enterpise?

Answer 1

The formation of a business by spotting an opportunity.

Question 2

What are the different sections of the economy?

Answer 2

Primary= raw materials. Secondary= manufacturing. Tertiary= services (retails is one of the biggest UK industries). Quaternary= research and development.

Question 3

What are needs?

Answer 3

Food, clothing, and shelter

Question 4

What are wants?

Answer 4

Extra desires that will improve quality of life. Luxury clothing etc.

Question 5

What are SMEs?

Answer 5

small and medium enterprises with a turnover of less than £50 million.

Question 6

Advantages of SMEs?

Answer 6

-Direct employment and indirect employment (15.7 million in 2016).
-Contributes to 50% of GDP.
-They buy supplies from other businesses.
-Pay tax.
-Often grow quicker than large businesses, good fro economic growth.

Question 7

Disadvantages of SMEs?

Answer 7

-Likely to fail in a recession.
-Harder to raise finance.
-less well known.
-Can’t always access economies of scale.

Question 8

What is an entrepreneur?

Answer 8

A person who organises, manages, and takes on the risks of a business.

Question 9

How may an entrepreneur spot an opportunity?

Answer 9

-Lack of service in local area.
-Assessing changing needs/wants of a population.
-Want to help others.
-Invention/innovation.

Question 10

What are the roles of an entrepreneur?

Answer 10

setting up, decision making, managing, risk taking, creating jobs, securing finance, innovating, undertaking market research.

Question 11

Financial motives?

Answer 11

Profit Maximisation
Profit Satisficing

Question 12

Non-financial motives?

Answer 12

-Turning a hobby into a business.
-To provide jobs.
-Independence/pride.
-Taking an ethical stance/
-Benefiting the community.

Question 13

What are entrepreneurial traits?

Answer 13

Risk taking, creativity, confidence, leadership, decisiveness, determination.

Question 14

Why are entrepreneurs important?

Answer 14

Innovators, create new jobs, business pays tax.

Question 15

What is a stakeholder?

Answer 15

any group or individual who can affect or is affected by a business and is interested in its activities.

Question 16

What are the internal stakeholders?

Answer 16

Employees, managers, owners.

Question 17

Owner’s objectives:

Answer 17

-Gaining the most from their assets.
-Maximising profits.
-Focusing on long term goals such as growth.

Question 18

Manager’s objectives:

Answer 18

-Self preservation and job security.
-High productivity from workers because more profits means more pay, which they are more likely to reap the rewards from

Question 19

Employees’ objectives:

Answer 19

-Job security.
-Working productively to get bonuses.
-Good working conditions.
-Promotion prospects.

Question 20

What are external stakeholders?

Answer 20

suppliers, society, government, creditors, shareholders, customers

Question 21

Shareholders’ objectives:

Answer 21

-High profits and dividends.
-A say in the business.
-A positive image.
-Preferential customer treatment.
Otherwise they would sell shares.

Question 22

Customers’ objectives:

Answer 22

-Good/efficient service.
-Choice.
-Treated with respect.
-Good quality for a fair price.

Question 23

Suppliers’ objectives:

Answer 23

-Fair price, even if businesses want to reduce costs.
-Paid on time.
-More orders.
-Power, as it is often with the buyers.

Question 24

Government’s objectives:

Answer 24

-Economic growth.
-Increased jobs and employment.
-Will have to deal with increased waste and pollution.

Question 25

Local community objectives:

Answer 25

-Increased regional wealth so improved facilities. -Supporting local charities and schools. -Pollution/litter/visual pollution conflict.

Question 26

Competitors objectives:

Answer 26

Will look at the product variety/price and the opening hours. Also wage rates.

Question 27

What is a pressure group?

Answer 27

a group that tries to influence public policy in the interest of a particular cause.

Question 28

Why does stakeholder conflict take place?

Answer 28

Hard to keep everyone happy.

Question 29

What is a business plan?

Answer 29

A written description of the business idea and how it will be carried out, including all major business activities.

Question 30

What is the purpose of a business plan?

Answer 30

A guide to make decisions and to check progress.W

Question 31

What is in a business plan?

Answer 31

Executive summary, objectives, marketing, finance, HR, operations.

Question 32

What is an executive summary?

Answer 32

Briefly describes and summarises the key objectives, staff and financial info.

Question 33

What is the objectives section?

Answer 33

Goals they want to achieve. Specific Measurable Achievable Realistic Time constrained

Question 34

What is the marketing section?

Answer 34

target market, competition, research, 4 Ps.

Question 35

What is in the HR plan?

Answer 35

details and credentials of owners/managers, the number of employees and their skills.

Question 36

What is in the finance section?

Answer 36

sales forecast, cash flow, break even, balance sheet, any potential sources.

Question 37

Why is a business plan important?

Answer 37

-Assesses all aspects leading to better decision making. -Everyone knows objectives. -Problems can be dealt with in advance. -Lenders are more likely to give finance.

Question 38

Where can entrepreneurs get information from?

Answer 38

GOV.uk and other government organisations offer advice on legal documents and plans. Grants and loans. Banks and private organisations (Prince's Trust). Other entrepreneurs.

Question 39

Disadvantages of business plans?

Answer 39

It may not be accurate. Putting together credible business plans is a highly skilled process. It can make you become 'tunnel-visioned' In a world where nothing is 100% certain, treating your business plan as an uncompromising manual is a bad idea. It can waste precious time and money.