INTRO TO BM
Define CSR
CSR is (Corporate Social Responsibility, which 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.
State two leadership styles
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
What is a cash flow forecast?
A 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
State two features of cooperatives.
- 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 increase 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
Scenario: A family-owned hotel chain, Valley Lodges, operates three mid-range hotels in rural tourist areas. The board is considering a proposal to diversify into urban budget hostels to attract younger international travellers. Using Ansoff’s Matrix, identify the specific growth strategy Valley Lodges is considering.
DIVERSIFICATION!!
New product: The company currently offers mid‑range hotels in rural areas. The proposal is to introduce urban budget hostels – a different price point, accommodation style (hostel vs. hotel), and target customer (younger international travellers).
New market: The company currently operates only in rural tourist areas. The proposal moves into urban locations, serving a geographically and demographically distinct market.