MODULE 4 Flashcards
Viability is like
TRUST
business viability is linked into
profit
solvency
liquidity
TWO PROCESS IN CREATING VIABILITY.
1) Create a marketing strategy by knowing who you re, who you are selling to, and who else is selling them.
2) Have a business financial house in order.
NEEDED IN CREATING A MARKETING STRATEGY
- unique selling proposition
- Stable Customer Base
- Competitive Advantage
- Cash Stability
- Financial Status
the first critical factor in having a viable business
unique selling proposition
Making the product or services unique is what makes it unique and keeps the business out in front of the competition.
unique selling proposition
Second step to make your business viable is to know who is going to buy the product and service.
stable customer base
Entrepreneurs should make a research and find out who are these people buying the kind of service and product and how frequent do they buy
stable customer base
Product uniqueness and knowing the people who buys the product is not enough, you sould also consider who are your competitors. Find out who sells the same product or similar product. Create a marketing strategy that keeps your competitive advantage
competitive advantage
The most important factor that makes a business viable is its asset, (cash and other reserve funds) for the every day operations including its ups and downs of the business
cash stability
The most important factor that makes a business viable is its
asset
Business owner should pay attention to the operation and financial status of the business. Keep a record of the information, finances and analye how healthy is its status.
financial status
a term used for business performance –solvency and liquidity.
viability
A business is _______ when it has enough assets to cover its liabilities.
solvent
is measured as a “current ratio” which is a business total current assesst divided by its total current liabilities.
solvency
SOLVENCY is measured as a
current ratio
formula to measure “current ratio” or solvency of a business
total current asset ÷ total current liabilities
a short-term measure. It refers to the ability of business to quickly turn assets into cash without loss.
liquidity
the most liquid assest
cash
If you have enough cash, business is solvent, liquid and this is called _____ ______ ______ meaning theres liquidity.
positive cash flow
GREAT EFFECTS OF A VIABLE BUSINESS TO THE COMMUNITY
- It provides a community jobs in the business sector
- It produces taxable income for the community from both for the business establishments and the workers
- Government continuously makes improvement in community infrastructures such as bridges, roads, water or electric to entice other business to invest in the community
- It leads to improved business service to community
- It improves community life
The economic contributions to the societies in which business operate are significant. These include payments to host government in the form of
taxes
Across the globe, business expect resource companies to
strong ethical standards
strong ethical standard includes ________ measures as well as ________________ including lobbying and the payment of taxes and royalties.
- strong anti corruptiion
- transparent disclosure around interaction w/ governments
transparent diclosures around interactions with governments includes
- lobbying
- payment of taxes
- payment of royalties
3 steps in MINIMIZING THE NEGATIVE IMPACT ON BUSINESS
- get your act together
- speak up, engage
- let time run its course
IMPORTANT STEP. Identify the problem and correct it at an operational or product development level
get your act together
this is necessary to mitigate the damage caused by a negative online review consist of engaging the aggrieved customer with a timely, contextual response that seeks to provide the individual with both an explanation and resolution. Make sure to take into account both spoken and unspoken concern of user who provide the negative feedback as well as the individuals exposed to negative feedbacks
speak up, engage
reducing the negativity effect in your online or live transactions that have been influenced by consumer feedback is to rely on the rule of recency and encourage new customers who have experience outstanding service or received superior products to provide their feedback
let timer runs it’s course
It is impossible to eliminate all risk in business. But it is the responsibility of ________ to manage the risk responsibly. Know where your business is most vulnerable and decide how much risk is acceptable
leadership
the ability to survive
viability
economic viability
profit
sociological viability
manageability
system viability
relationship between system and environment
sustainability
- resource consumption
- social mandate
- environmental impact
- political support
- image
Viability across a range of environmental conditions is known as
robustness
Viability in a single specialized environment is known as
niche viability
- Viability into the future is known as
sustainability
Viability for a defined period, with no requirement for survival after the period has ended, we can call
time-delimited viability
