INTRO TO BM
What is CSR?
CSR is an approach to business that involves ensuring that a business considers the consequences of each decision they make in relation to all of its stakeholders
Situational, Paternalistic, Laissez-faire, Autocratic, Demographic
State two external sources of finance.
Share Capital, Loan Capital, Overdrafts, Trade Credit, Crowdfunding, Business Angels, Leasing
Define marketing
marketing is the process of identifying, meeting and satisfying customer of needs
what does the three E's in STEEPLE represent
Ethical, Environmental, Economic
what are the 4 personal characteristics of an entrepreneur
Adaptability, Creativity, Work ethic, Communication
What is Workforce planning (WFP)
Workforce planning is the method used by a business to forecast how many and what type of employees are needed now and in the future
definition of cash flow forecast
cash flow forecast is an estimate of the future cash flow of a business, usually done on a month by month basis
What is the formula for market share?
Market Share = a business sales in the time period/total market sales in the time period x100
Which part of the SWOT analysis does "growth within the business's industry" fall into?
Oppurtunities
Discuss one disadvantage of MNC's for the host country.
- unemployment
- high competition causing local firms to collapse
1. Self Interest
2. Low tolerance
3. Misinformation
4. Interpretation of circumstances
State the process of the Working Capital Cycle.
--> Cash --> Material/Stocks --> Production --> Sell/Debtors
State all 5 Pricing Strategies
- Premium
- Penetration
- Predatory
- Loss Leader
- Cost Plus
Operating in a high-growth market but currently holding a low market share, these require heavy investment to avoid falling behind. What is this?
- Question Mark/Problem Child
- Usually consists of limited liability
- Profits that are made get shared amongst the members.
State 3 strategies of reasons for resistance to change.
Participation, Planning, Communication, Negotiation, Manipulation, Coercion
State two methods of decreasing gross profit.
-Increasing Sales Revenue
-Decreasing Cost Of Sales
In the product life cycle, this stage is characterized by rapid sales growth and increasing profits.
Growth
What in the ansoff matrix represents the percentage of customers you reach at least once in a defined period of time.
Market Penetration
What are all the objectives a business might have?
- Profit
- Growth
- Increasing Market Share
- Ethical Objectives
- Maximising shareholder value
State one advantage & one disadvantage of coercion.
Advantages:
- speed of implementation (FAST!)
- low initial costs
Disadvantages:
- legal & ethical risks
- no commitment
This terminal financial state occurs when a business experiences severe cash flow problems and becomes entirely unable to pay its short-term debts
Insolvency
- Finding a new target market
- Redesign of packaging
- Product update
- Price reduction
- New promotional strategies