Topic 1 - Intro to business
Define Entrepreneurs and their characteristics
individuals with the talent, perseverance and appetite for risk that lead them to create new organisations.
Give 1 strategy for overcoming Resistance to Change
Participation, Planning, Communication, Negotiation, Manipulation, Coercion.
What are the main parts of a balance sheet? (at least 5)
1. Non-current assets;
2. Current assets;
3. Current liabilities;
4. Non-current liabilities;
5. Equity.
(accept net asset)
What is the advantage of Premium Pricing?
It can lead to higher profit margins and improved public perceptions of a company.
1. Market Penetration
2. Market Development
3. Product Development
4. Diversification
Define Tertiary Sector, and provide 1 example
Definition: The tertiary sector provides intangible services to people and businesses.
Example: Banking services, public transportation, schools, etc.
Provide 1 limitation of an Autocratic leadership style
Employees’ ideas and feedback may not be sought or welcomed.
Innovative ideas and creativity may be stifled as there is no mechanism for employees to voice or act on their ideas.
Benefit of having many revenue streams (2 main ones)
1. Means there are additional and multiple ways to generate revenue.
2. Spreads risk, meaning that if one product fails or goes out of favour, there are still other ways for revenue to be made.
Describe the marketing process
1. Research the market, create a plan, identify gaps.
2. Determine target market segment characteristics.
3. Decide on marketing strategy.
What does each of the following shapes represent in the decision tree?
Square?
Circle?
Weird Parallel lines?
Square: Decision
Circle: Probability
Weird Parallel lines: do not choose / exclusion
Advantage for the host country for hosting MNC's (2 is enough)
- Potential economic growth and employment.
- "Upskilling" for the local population → could be beneficial to the country long term
- Greater choice of products for citizens
- May build infrastructure which will benefit the country long-term.
List 2 internal factors and 1 external factor that determine the Workforce Planning
Internal: Organisational structure, size, budget, promotion of employees, flexitime, motivation
External: Sociocultural factors, the economy (recessions vs. booms), labour mobility
Give 3 reasons for cash flow problems in a business
Lack of planning
Poor credit control
Allowing customers too much credit
Expanding too rapidly
Unexpected events
Define Physical Evidence and what is its importance.
Def: Refers to the image portrayed by a business regarding its tangible and observable features, when a customer is interacting with the business
Importance:
- Provide a likeable experience, for example, comfortable, clean, professional, etc.
- Motivate employees as they are working in a higher-quality environment, they are likely to work more efficiently, etc.
What is a Business Plan, and what is its value?
It helps potential entrepreneurs and new business owners identify the potential issues they might face before they set about putting their ideas into action.
What is the difference between a mission and a vision statement?
Mission statement: the business's core aims, phrased in a way to motivate employees and to stimulate Interest by outside groups.
Vision statement: what the organisation would like to achieve or accomplish long-term. It tends to be inspirational and contains little substance.
List 4 reasons for Resistance to Change
1. Self-interest
2. Low tolerance
3. Misinformation
4. Interpretation of circumstances
What are the interests of employees in knowing the financial aspects of the business? (there are 2)
1. Overall financial stability of the business and how secure their jobs are
2. to be able to negotiate for better wages based on the profits of the business.
Define Direct Distribution and what are the limitations of it (at least 2)
The producer sells goods or services directly to the final customer without using middlemen, does not involve the use of intermediaries.
Limitation:
- Reduced distribution channels may lead to lower sales
- Increase internal workload to manage for the producer
- Raise cost as all delivery and promotional costs activity is done by the producer.
What should be a business's general strategy when encountering a "Problem Child"?
Can be one of two things - either investment or divestment. As these have low market share in high-growth markets, they are usually the hardest products to determine what to do with. If successful, they could become stars; however, money could also be wasted.
What is a business?
A business is an organization that provides goods or services for customers to satisfy needs in exchange for profit generation.
Name the 4 intangible assets and briefy describe it.
Patent: The legal protection given to an inventor of a product to safeguard it from being copied for a specified number of years.
Trademark: A unique and registered mark, sign, or symbol used to legally distinguish a specific brand's goods or services from those of its competitors.
Copyright: A form of legal protection that gives the creator of original expressive works (such as literature, music, or software) the exclusive right to reproduce the work.
Goodwill: The intangible value of a business that arises from its reputation, brand loyalty, and customer relationships, typically calculated as the premium paid for a company above its net physical asset value during an acquisition.
What is marketing?
Marketing is the process of identifying, meeting, and satisfying customer needs.