Objectives: Short term goals
to help reach your goal
SMART
Specific
Measurable
Acheivable
Realistic
Timebound
Stakeholders & shareholders
A Stakeholder is a person who
has an interest in a business
A shareholder is somebody that owns a
part of a business
Primary, Secondary and Tertiary sectors
Primary Sector - Extract raw
materials
Secondary Sector - Manufacture
items using raw materials
Tertiary sector - Sells the
finished product or service
Key terms
Specialisation - When a business operates in
one particular sector. It will specialise in this
leaving other sectors to do their parts of work
Added Value - As raw materials are made into finished
goods, secondary sector are adding value tot the raw
goods. When the product is sold in the tertiary sector it
adds value to the item that has been made as it is sold
for more than it cost to make
Merger - Two businesses of similar
size come together to form one
business
Acquisition - One larger business
takes over a smaller business
Conglomerate/Diversification is
when a business acquires
another business that is
unrelated with it
Integration
Horizontal integration is when 2 businesses
merge together in the same sector
Backwards vertical integration is when
a business merges with another
business in the sector before theirs
Forwards vertical integration is
when a business merges with a
business in the sector after theirs
Conglomerate/Diversification is when
a business acquires another business
that is unrelated with it