1.1
What are Business ‘inputs’? (list 4)
Land / Labor / Capital / Enterprise
Sole trader?
One person provides finance for the entire business
Has full control and receives all the profits
Shareholders?
The owners of the company
STEEPLE analysis?
Social, Technological, Economic, Environmental, Political, Legal, Ethical
Role of the entrepreneur?
Entrepreneur: Person who takes the financial risk of starting and managing a new venture
Public limited company (plc)?
A large business with the right to sell shares to the public
Have access to substantial capital sources
Stakeholders?
Other parties that are affected & interested in business activity
Economies of scale?
Reduction in a firm’s unit(average) cost of production that results from an increase in the scale of operation
Problems faced by start-ups (list 2)
Competition / Lack of record-keeping / Lack of finance and working capital / Poor management skills / Changes in the business environment
Main features of Non-governmental organizations?
A legal entity that does not represent any type of government
Helps tackle social issues such as human rights
Possible areas of conflict?
Expansion of the business
New IT introduced into production method
could be anything honestly...
Factors of Diseconomies of scale?
1. Communication problems: large scale operations which leads to poor feedback to workers which leads to delayed and inaccurate information and inefficiency
2. Alienation of the workforce: Level of difficulty to involve every worker increases
3. Poor coordination and slow decision making: Coordination of the operations and making decisions in a complex organization is a problem
Economic sectors (business activity & impact of sectoral change)?
Primary (e.g. farming and fishing) / Secondary (e.g. computers and baking) / Tertiary (e.g. retailing and tourism) / Quaternary (e.g. research and development)
Difference between external and internal environment?
Internal Environment refers to all the inlying forces and conditions present within the company, which can affect the company's working. External Environment is a set of all the exogenous forces that have the potential to affect the organization's performance, profitability, and functionality.
1+1?
1
Large vs. small firms(advantage)
Large
- Benefits from economies of scale
- Global reach
- Can afford to employ specialist professional managers
- Increased market share
- Higher status
- Brand recognition
- More access to sources of finance
Small
- Owners ca manage and control the business
- Faster adaptation
- Closeness at work
- Communication more efficient
- More flexibility and customized service —> closer to consumers
Common steps in the process of starting up a business
Sourcing capital (finance) / Determining a location / Building a customer base
Corporate social responsibility (CSR)?
A management concept in which a company integrates social and environmental issues in its business operations and interactions with stakeholders
Methods of conflict resolution within a business?
Arbitration, Profit-sharing schemes, Share ownership schemes
Large vs. small firms (disadvantage)
Large
- More difficult to manage
- Potential of cost increases associated with large-scale production
- Slow decision making and poor communication
Small
- Access of source of finance may be limited
- Large burden to owner
- Greater risks of negative impact of external change
- Unlikely to benefit from economies of scale