751811
Description
Mind Map by eloise.ives, updated more than 1 year ago
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Created by eloise.ives
over 10 years ago
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business A292
- the need for
business activity
- needs are essential for us to
survive. eg water food
clothing warmth
- goods: things we can touch and
see that we want need. services:
can't touch or necessarily see but
are provided
- Primary: business extracts raw
materials from natural resources.
Secondary: take raw materials and turn
into finished product. Tertiary: business
provide service and sell
- Capital Goods: used to produce
other goods eg cranes. Consumer
Goods: sold to and used by
individuals for personal use eg
DVD
- Capital Goods: used to produce
other goods eg cranes. Consumer
Goods: sold to and used by
individuals for personal use eg
DVD
- Primary: business extracts raw
materials from natural resources.
Secondary: take raw materials and turn
into finished product. Tertiary: business
provide service and sell
- goods: things we can touch and
see that we want need. services:
can't touch or necessarily see but
are provided
- needs are essential for us to
survive. eg water food
clothing warmth
- Aims and Objectives
- Aims: long term goals of the business,
generalised eg make profit. Objectives: series of
steps a business takes to achieve its aims. more
precise than aims, can often be measured eg
airlines, carry 2mill passengers by a certain date.
- SMART- Specific Measurable
Achievable Realistic Time related
(factor to achieve aims)
- Aims: Survival, profit,
growth, maximising
sales revenue
- Aims: Survival, profit,
growth, maximising
sales revenue
- SMART- Specific Measurable
Achievable Realistic Time related
(factor to achieve aims)
- Aims: long term goals of the business,
generalised eg make profit. Objectives: series of
steps a business takes to achieve its aims. more
precise than aims, can often be measured eg
airlines, carry 2mill passengers by a certain date.
- Stakeholders
- individuals or groups with
an interest in the business
- Customers: buy goods and services Owner/Shareholder: invest their
money and hope share will grow Suppliers: supply goods and services to a
business Managers: people who were employed by the owner to manage
the business Employees: work for the business Pressure Groups: try to
influence the way a business works Competitors: find out what others are
doing so that they can improve Local Community: interest in the business
development Government: a body of elected parliament who run the
county.
- Social enterprise: a business enterprise
that is run fir the benefit of the community,
with any profits put back into community
projects
- Soletraders: an individual who may or
may not employ people, but who owns
and operates the business and has
unlimited liability eg hairdresser
- Partnership: two people owning a
business
- Partnership: two people owning a
business
- Advantages: Capital- small amount Profits-
kept by owners Control- more control
Flexibility- choices Privacy- no publish intro
Easy to run/set up Tax advantages
- Disadvantages: Long hours Illness- might stop
business Unlimited liability- risk of losing
possessions Lack of continuity- no pass on after
death Raising capital- may need to borrow money
Limited specialisation
- Disadvantages: Long hours Illness- might stop
business Unlimited liability- risk of losing
possessions Lack of continuity- no pass on after
death Raising capital- may need to borrow money
Limited specialisation
- Social enterprise: a business enterprise
that is run fir the benefit of the community,
with any profits put back into community
projects
- Customers: buy goods and services Owner/Shareholder: invest their
money and hope share will grow Suppliers: supply goods and services to a
business Managers: people who were employed by the owner to manage
the business Employees: work for the business Pressure Groups: try to
influence the way a business works Competitors: find out what others are
doing so that they can improve Local Community: interest in the business
development Government: a body of elected parliament who run the
county.
- individuals or groups with
an interest in the business
- Type of business
organisation and
ownership
- Incorporated: a separate legal entity
which will be owned by its
shareholders eg private limited
company and public limited company
- THEY HAVE: Limited Liability: the partner or investor can't lose more than
they invested into the business. The investor or partner is not personally
responsible for debts and obligations of the company in the event that
these are not fulfilled. Separate Legal Entity: the business has a separate
legal identity form its owners; it can start legal action against another
business in order to protect itself. Others can take legal action against
them. Tax on Profits: corporation tax is paid on any profit. Finance: can be
raised through the sale and issue of shares. Financial info: info available
to shareholders and general public. Insolvency: occurs when a business is
unable to pay its debts.
- THEY HAVE: Limited Liability: the partner or investor can't lose more than
they invested into the business. The investor or partner is not personally
responsible for debts and obligations of the company in the event that
these are not fulfilled. Separate Legal Entity: the business has a separate
legal identity form its owners; it can start legal action against another
business in order to protect itself. Others can take legal action against
them. Tax on Profits: corporation tax is paid on any profit. Finance: can be
raised through the sale and issue of shares. Financial info: info available
to shareholders and general public. Insolvency: occurs when a business is
unable to pay its debts.
- Unincorporated: a type of business
organisation which has unlimited
liability eg sole proprietors
- Unlimited Liability: owners are personally liable for any
and possessions may be taken. Tax on Profits: income
tax is paid on the profits. Community: the business
ceases on the death of an owner. Financial Info: private
to the owner/business. Bankruptcy: happens if the
business is unable to pay debts
- Unlimited Liability: owners are personally liable for any
and possessions may be taken. Tax on Profits: income
tax is paid on the profits. Community: the business
ceases on the death of an owner. Financial Info: private
to the owner/business. Bankruptcy: happens if the
business is unable to pay debts
- Incorporated: a separate legal entity
which will be owned by its
shareholders eg private limited
company and public limited company
- Location
- Cost of land: expensive land may mean higher products eg SE> NE. Availability
of Labour: level of unemployment can vary, workers skill, level of pay, rate.
Transport and infrastructure: business can gain access to roads, goods may
have to be transported. Climate and physical Geog: the location of agriculture
activities is often influenced by both C+PG. Target market: most businesses that
service like to be near markets they can serve. Government Incentives: often
other financial incentives, to start a new business or relocate. Type/Nature of
product: ship building will be near coats products are very often specialised.
- Growth
- Replaces survival, higher sales and
profit, better returns for owners, to
meet and increase demands,
economies of scale, increased
market share, increased power in
the market
- Organic growth: Internal growth occurs when business expands
through increasing output and sales itself and without taking other
any other business. Inorganic growth: manager- coming together
of 2 companies, takeover- one company buys more than 50% of
the shares
- Organic growth: Internal growth occurs when business expands
through increasing output and sales itself and without taking other
any other business. Inorganic growth: manager- coming together
of 2 companies, takeover- one company buys more than 50% of
the shares
- Replaces survival, higher sales and
profit, better returns for owners, to
meet and increase demands,
economies of scale, increased
market share, increased power in
the market
- Growth
- Cost of land: expensive land may mean higher products eg SE> NE. Availability
of Labour: level of unemployment can vary, workers skill, level of pay, rate.
Transport and infrastructure: business can gain access to roads, goods may
have to be transported. Climate and physical Geog: the location of agriculture
activities is often influenced by both C+PG. Target market: most businesses that
service like to be near markets they can serve. Government Incentives: often
other financial incentives, to start a new business or relocate. Type/Nature of
product: ship building will be near coats products are very often specialised.
- Control
- Shareholders > Board of directors (control the
company) > Chairman (takes responsibility of BofD)
> Managing Director (responsible for running of
business) > Finance Director - Production Director -
Personal Director > who are incharge of specific
sections of the business > Managers (who run the
business on a day to day basis) > Other employees
(who carry out a variety of tasks)
- PLC can quote shares in a stock exchange.
Shares in a PLC can be bought + sold through
the stock exchange -theres no need to consult
the owners for selling + buying shares. LTD
shares are normally sold to close friends and
family.
- PLC can quote shares in a stock exchange.
Shares in a PLC can be bought + sold through
the stock exchange -theres no need to consult
the owners for selling + buying shares. LTD
shares are normally sold to close friends and
family.
- Shareholders > Board of directors (control the
company) > Chairman (takes responsibility of BofD)
> Managing Director (responsible for running of
business) > Finance Director - Production Director -
Personal Director > who are incharge of specific
sections of the business > Managers (who run the
business on a day to day basis) > Other employees
(who carry out a variety of tasks)
- Private Limited
Company (LTD)
- Advantages: Shares- can be issued to investors in
exchange for money as a means of raising capital.
Legal identity: separated from its owners. Can take
legal action against people or company. Community-
subject to agreement by shareholders the business
can be sold + shares can be
- Disadvantages: Lack of Capital- existing shareholder
unable to provide. Dividends- most shareholder expect a
dividend. Sale of shares- restrictions; can't offer shares to
general public to raise finance. Submitting info to registrar-
time consuming and costly
- Disadvantages: Lack of Capital- existing shareholder
unable to provide. Dividends- most shareholder expect a
dividend. Sale of shares- restrictions; can't offer shares to
general public to raise finance. Submitting info to registrar-
time consuming and costly
- Advantages: Shares- can be issued to investors in
exchange for money as a means of raising capital.
Legal identity: separated from its owners. Can take
legal action against people or company. Community-
subject to agreement by shareholders the business
can be sold + shares can be
- Public Limited
Company (PLC)
- Advantages: Limited Liability- no risk of
personal bankruptcy. Ability of raising
finance- able to offer shareholder sales,
more capital. Additional funds- can be raised
from other sources.
- Disadvantages: Cost of Setting Up- complicated and
pricey. Financial info- general public is allowed to request a
copy of companies accounts. Dividends- shareholder
expect profit. Take Over- shares in company can be easily
traded on stock exchange. Shareholders- Own the
company but unless they have a large number of shares
they will have very little say.
- Key terms: Incorporations- process of becoming a
limited liability company. Registrar of companies- person
responsible in the UK for maintaining records relating to
the activities of PLCs + LTDs. Board of Directors-
people usually elected by shareholders to represent
their interests + important decisions. AGM- yearly
meeting of shareholders. Capital-money usually raised
through sales of shares to investors.
- Key terms: Incorporations- process of becoming a
limited liability company. Registrar of companies- person
responsible in the UK for maintaining records relating to
the activities of PLCs + LTDs. Board of Directors-
people usually elected by shareholders to represent
their interests + important decisions. AGM- yearly
meeting of shareholders. Capital-money usually raised
through sales of shares to investors.
- Disadvantages: Cost of Setting Up- complicated and
pricey. Financial info- general public is allowed to request a
copy of companies accounts. Dividends- shareholder
expect profit. Take Over- shares in company can be easily
traded on stock exchange. Shareholders- Own the
company but unless they have a large number of shares
they will have very little say.
- Advantages: Limited Liability- no risk of
personal bankruptcy. Ability of raising
finance- able to offer shareholder sales,
more capital. Additional funds- can be raised
from other sources.
- Employment
and Retention
- Internal Recruitment:
appointing someone within the
business to a position
- Methods of
internal: notice
boards, news
letters, memos,
email, intranet.
- Advantages: Familiar with
business, cheaper and faster,
opportunity for promotion,
improves staff morale + motviation
- Disadvantages: Range of
applications limited, no new skills
or ideas, lead to staff discontent if
not chosen
- Disadvantages: Range of
applications limited, no new skills
or ideas, lead to staff discontent if
not chosen
- Advantages: Familiar with
business, cheaper and faster,
opportunity for promotion,
improves staff morale + motviation
- External: appointing
someone outside the
business to a position
- Methods: internet, media,
recruitment agency, job
centre
- Advantages: large
choice, new
people/ideas,
experience, flexible
salary
- Disadvantages: long
process, costly,
difficulty chosing
- key terms: Selection- process of choosing
candidates. Needs Analysis: how a
business decides how many workers to
have. Job Description: Main duties or
responsibility of worker. Agency: specialist
agency that carries out all tasks and
selects worker on behalf of organisation.
- key terms: Selection- process of choosing
candidates. Needs Analysis: how a
business decides how many workers to
have. Job Description: Main duties or
responsibility of worker. Agency: specialist
agency that carries out all tasks and
selects worker on behalf of organisation.
- Advantages: large
choice, new
people/ideas,
experience, flexible
salary
- Methods: internet, media,
recruitment agency, job
centre
- Methods of
internal: notice
boards, news
letters, memos,
email, intranet.
- Internal Recruitment:
appointing someone within the
business to a position
- Franchise
- An already established business for
sale to other businesses the right to
use its products, services and
branding usually in a defined location.
- Franchisee: individual benefitting
from someones trading name +
experience. Franchisor: the business
granting the franchise.
- Advantages: No competition in defined area, successful
idea, already established, advertising paid for, training
and advice, reduce risk of failure. Disadvantages:
Supplies purchased from franchisor, large initial capital
must be raised, annual royalty payment based on % of
profit, not total control, loses have to be paid for by
franchisee.
- Franchisee: individual benefitting
from someones trading name +
experience. Franchisor: the business
granting the franchise.
- An already established business for
sale to other businesses the right to
use its products, services and
branding usually in a defined location.
- Co-operatives
- Societies which
operate for the benefit
of members
- Charities: to generate an
income to fund their
charitable work -limited
companies
- Advantages: receive wide range
of tax breaks, people offer time
and energy to registered
charities. Disadvantages: must
comply with charities legislations,
must produce annual report and
return
- key terms: Royalty- a payment
made to the franchisor based
on the sales revenue of
franchise, Globalisation-
worldwide independence of
business activity, Public Sector-
business activity which is
owned by local or national gov.
- key terms: Royalty- a payment
made to the franchisor based
on the sales revenue of
franchise, Globalisation-
worldwide independence of
business activity, Public Sector-
business activity which is
owned by local or national gov.
- Advantages: receive wide range
of tax breaks, people offer time
and energy to registered
charities. Disadvantages: must
comply with charities legislations,
must produce annual report and
return
- Multinational companies: large
company that has its headquarters in
one country and production facilities or
sales in 2+ countries
- Advantages: locate where production
lower, manufacture in large amounts,
closer ti markets around world.
Disadvantages: communication problems,
transport costs, exchange rates, different
legal requirements.
- Advantages: locate where production
lower, manufacture in large amounts,
closer ti markets around world.
Disadvantages: communication problems,
transport costs, exchange rates, different
legal requirements.
- Charities: to generate an
income to fund their
charitable work -limited
companies
- Societies which
operate for the benefit
of members
- Failure
- Management: poor
management will = failure if
they don't spend any money or
time at work. Demand: no
demand for products, need to
meet demands of customers.
Location: wrong location eg
paint shop in theme park,
Competition: too many
business selling the same
product, Poor Quality: bad
quality will make customers
not want product, Profit:
insufficient profit
- Management: poor
management will = failure if
they don't spend any money or
time at work. Demand: no
demand for products, need to
meet demands of customers.
Location: wrong location eg
paint shop in theme park,
Competition: too many
business selling the same
product, Poor Quality: bad
quality will make customers
not want product, Profit:
insufficient profit
- Motivation
- The will to work. Five levels of
human needs- physiological,
safety, social needs, self esteem,
self fulfillment
- Rewards: salary,
promotion, award
schemes.
- Non Financial Motivation: fear- threats,
Job Rotation- performing other jobs, Job
Enrichment- more responsibility, Team
Work- needs training, Job Enlargement-
different tasks within jobs.
- Non Financial Motivation: fear- threats,
Job Rotation- performing other jobs, Job
Enrichment- more responsibility, Team
Work- needs training, Job Enlargement-
different tasks within jobs.
- Advantages: better productivity,
better quality, lower levels of
absenteeism, lower levels of staff
turnover, lower training and
recruitment costs.
- Rewards: salary,
promotion, award
schemes.
- The will to work. Five levels of
human needs- physiological,
safety, social needs, self esteem,
self fulfillment
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