unit 1 outcome 3 Flashcards
what are the three business resources?
natural resources, capital resources, and labour resources
what are natural resources?
items the business uses that come from the natural environment, e.g. land, water, steel or other raw materials
what are capital resources?
tools and machinery used by the business to produce the good / service. these resources help labour / employees to be more efficient, e.g. a fridge or a drill
what are labour resources?
human resources (employees), people that provide their skill, effort and knowledge to the business.
name the types of business location
shopping centres, online stores, home based businesses, and retail shopping strips
what are some advantages and disadvantages of having a business in a shopping centre?
ADVANTAGES:
- lots of people walking past
- people are there with the intention of spending money
- there is no weather impact
DISADVANTAGES:
- you may have to travel far
- you have to pay rent
what are some advantages and disadvantages of having a business online?
ADVANTAGES:
- easy public access (people dont have to travel)
you dont have to pay rent
DISADVANTAGES:
- no one walking past
- harder to spread awareness / public knowledge
what are some advantages and disadvantages of having a business at home?
ADVANTAGES:
- you don’t need to travel to the business
- you don’t have to pay rent
DISADVANTAGES:
- not visible to the public
- harder to access in terms of parking etc.
what are some advantages and disadvantages of having a business in a retail shopping strip?
ADVANTAGES:
- lots of people walking past
- more ‘unique’ stores / not much competition
DISADVANTAGES:
- you have to travel to the business
- you have to pay rent
- the weather can affect shoppers (rain etc.)
what are advantages and disadvantages of buying an existing business?
ADVANTAGES:
- already existing customers
- good business history increases the likelihood of success
- a proven track record makes it easier to obtain finance
- stock and providers are already acquired
- the seller may provide training or advice
- equipment is provided
- employees have experience
DISADVANTAGES
- the existing business image or policies may be hard to change
- the success of the business may have been because of the pervious owner
- some employees may not like any changes
what are advantages and disadvantages of starting a new business?
ADVANTAGES:
- the owner can set up the business however they wish
- the owner can establish pace and changes
- it is possible to begin on a small scale if funds are limited
DISADVANTAGES:
- risk and difficulty obtaining finance
- customer bases, employing staff, and finding providers and suppliers will take time
- if the startup is slow, a profit may take a while to come
what are the different types of business models?
- online
- bricks and mortar
- import and export
- franchise
- social enterprise
describe an online business model
the business is mainly on the internet (e.g. google, ebay, amazon etc.)
describe a bricks and mortar business model
traditional businesses with a physical location (local milk bar etc.)
describe an import and export business model
a business that deals with international trade of goods (e.g. australia exporting live meat to china)
describe a franchise business model
a business that is licensed to operate under the business model of an existing business (e.g. subway, mc donalds)
describe a social enterprise business model
a business that aims to improve the wellbeing of other / the community
what should you consider when choosing a business model?
- what is the main goal of the business?
- what goods or services will be offered?
- how will the business sell these goods of services?
- who are the target customers?
- what types of costs will the business expect to incur?
- will a new business be started or will a franchise be purchased?
what is market research?
collecting and analysing data and information to assist the business in it’s understanding or potentials customers and competitors
what is a business plan?
a written statement of the goals and objectives for the business and the steps taken to achieve them
what is a SWOT analysis and what does it stand for?
a situational analysis looking at where the business currently stands.
Strengths (what is the business good at e.g. skilled workers, quality products)
Weaknesses (where does the business need to improve e.g. unreliable suppliers, any problems)
Opportunities (how can the business improve and grow e.g. creating new products, producing overseas)
Threats (what could harm the business e.g. competitors, weak economy)
what are the types of business support services?
legal, financial, technological, community based, formal and informal networks, and business mentors
who provides legal support advice?
a solicitor (business formation, registrations, contracts and legislations, and partnership agreements)
who provides financial support advice?
an accountant (financial management issues, taxation obligations, recording financial events)
