intro to business Flashcards
aims
general goals which provide long term vision/ direction
objectives
specific targets which are steps towards acheiving aims
owner
people who pay money into the business and now own it.
they want the bus to generate as much money as possible
directors
responsible for company policies
make the business run smoothly
SMART targets
specific, measurable, acheivable, realistic, time bound
strategic aims/ objectives
long term goals that relate to the overal direction of the business
hard to change as go through many positions
eg) profit, growth (vague)
set by head of the business
tactical objectives
medium/ short-term objectives that help the bus achieve its strategic ones. corprate and department level
can easily be changed
more specific then strategic
operational objectives
short term objectives that relate to the day to day running of business
business plans
written by entrepreneur before they start trading or before a new phase
what a business needs in order to succeed
should be updated with change
advantages of business plans
- help support application for finance, pursuade bank for finance
- give the business a sense of direction
disadvantages of business plans
- takes time to make, review and update
- can be long and complicated
- is useless unless its followed
primary industry
sourcing of raw materials
eg) farming, coal mining, oil, gas
secondary industry
turning raw materials into products to sell
eg) manufactoring, cars, food
tertiary industry
selling the product ot service
eg) supermarkets, services
adding value
at each stage of production a bus can add value to the product.
value added = price - cost of production
sole traders
one owner, funded by owner
+ full control of decisions, keep all profit, easy to set up, chose own hours
- unlimited liabilty, hard to get start up funds, no continuity, may not have all thr skills
partnership
20-20 owners, funded by owners
+ more skills/ ideas, more capital, less workload
- conflicting ideas/ decisions, split profit, unlimited liabilty
LTD private limited company
incorperated, funded by investment, shares
+ limited liability, continuity, capital from shareholders, essier to access sources of finance
- business must chose shareholders, less privacy have to publish accounts
PLC public limited company
floats on the stock market, funded by people why buy shares
+ limited liability, continuity, gains lots of shares
- risk of takeover
research and development
market research, advertising and promotion
distribution
products delivered correctly in the most cost effective way
purchasing
buying all materials, ensure there is sufficient stock
administration
support, organise travel and welcome visitors
production
making goods, make enough, products to meet the demand, quality control
customer service
customer questions, after sales support like refunds, exchange, damaged goods
sales
sellimg products, knowledge of product range, advice for customers
finance
records money coming in and out of the business, chasing up late payments, financial documents
human resources
responsible for employees, advertise jobs, training and recruitment, employment law and records of staff sickness
factors of production
land - natural resources available for production
labour - human input
enterprise - organise and take risks
capital - money used to buy things
