theme 2 Flashcards
reasons to start a business
Brainstorming
Personal experience
Business experience
Market research
creative destruction
Joseph Schumpeter in the 1940s
When something new kills something e.g automobiles to horse carriages e
steps to start a buisness
Generating an idea
Asking if the idea can add value
Conducting market research
Drawing up a business plan
Deciding on legal structure
Raising finance
business plan
The executive summary - a synopsis of the entire plan looking at
the most important points
The business and products or services
The market e.g. size, share, competitors
The marketing strategy
The skills of the entrepreneur and other key employees
Operations
Financial forecasts
managing a business
Managing resources including stocks, personnel and
finances
Making marketing decisions about aspects of the
marketing mix such as what price to charge and how to
promote the business
Dealing with customers
if the business grows
employ more staff and specialists
move to a bigger building
change supplier
expand product range
added value
Added value is the ability to ensure that the
value of the output is higher than the sum of
the value of all the inputs
can be achieved by
emotional advitersing
unique selling point
customer service
entrepreneur motives
money
fulfilling dream
own boss
work-life balance
ethical - to behave i a morally correct way
social - supporting a cause rather then making a profit
Specialization
Specialization occurs when economic units such as individuals, firms, regions or countries
concentrate on producing specific goods or services. Specialized use of workers within an organization is called the division of labour.
Specialization adv
skilled at workj
reception improve skills
less time wasted boosted production line speed
cuts production cost
little training
Specialization dis
can become tedious
way too busy or way too quiet
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