Definitions
Market share
The portion of a market controlled by a particular company or product
A source of Business Opportunity
What is...
Innovation
Market Opportunities
Changing customer needs
Research and Development
Technological advances
Global markets
What is the internal environment?
The elements of a business for which a business has control over
Give an example of a global consideration.
exchange rates
overseas markets
competitors
protecting ideas
online sales
Why is consideration of customer needs important to a business?
If customers are happy they will keep coming back and tell other people
Sole Trader
A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses
A contribution a business makes to the economic wellbeing of the country
Pay tax
Provide Employment
Name a type of business model
online business
direct-to-customer
bricks and mortar
franchise
importer
exporter
What is an environmental consideration a business may make?
Amount of pollution they make
How can a business stay ahead of their competition?
Bring out competing products
Marketing
Corporate Social Responsibility
Companies commitment to going above and beyond what is legally required of them in terms of social, economic and environmental factors
What might motivate someone to start a business?
Financial independence
Personal independence
make a profit
Fulfil a market need
Fulfil a social need
A source of finance a business could access
Equity capital
debt capital
grants
overdraft
Name an economic condition a business must consider in its planning
interests rates
employment levels
tax rates
level of consumer confidence
What is the supply chain?
the sequence of processes involved in the production and distribution of a product or service
Revenue
The amount of money a business makes before taking out costs.
Why is goal setting important to a business?
Provides direction
Sets targets
Can show growth
What are the elements of a SWOT analysis
Strengths, weaknesses, opportunities and threats
What does a trademark protect?
Trade marks can protect a logo, phrase, word, letter, colour, sound, smell, picture, movement, aspect of packaging, or any combination of these
How might a special interest group impact on business planning?
They could put public pressure on the business
Watchdogs could get complaints etc
Private Limited Company
A company who's ownership is not accessible to the public. Shareholders can decide who can buy into the business.
What is the purpose of a feasibility study?
To gage whether a business is needed and that is is a viable business venture.
What does 'separate legal entity' mean?
The business is seen as separate from the owner. This means the owner is no longer personally liable for debts and lawsuits against the business
What is meant by a trend?
a general direction in which something is developing or changing
Why might a business want to work with a lobby group like greenpeace instead of against them?
Can cause bad publicity if they don't. Just like Nestle who saw a drop is sales after the "kitKat' campaign.