Business Unit 1 :moneybag:
Business Unit 1
1.1: Spotting a business opportunity
Partnership (2-20 people)
More ideas to help improve the company
More money can be put into the business
Each partner is legally responsible for the what the others do
Private: Shares can only be sold if all shareholders agree. Shareholders are usually part of the family
Limited Liability (only can lose the amount you invest.)
The company can continue to run after a shareholder dies.
Public: Anyone can buy shares to the company
Much more capital can be raised by a PLC than any other business
Helps the company diverse
Can suit more customer needs as it is more diverse
Each shareholder has very little say in how the company is run
If someone is able to convince shareholders to sell, they could take control of the business.
As a lot of money is going to shareholders, it means that little money can go into other objectives.
Easy to set up.
Get to be your own boss
You get all profit
You have unlimited liability (If the business starts owing money you have to pay to it yourself)
You have to work long hours
Illustrates the position of a product in a market based upon two features that are important to the customers.
Gap in the market
A place where no businesses are serving the needs of customers for a particular product.
A group of customers with similar buying habits
Why we segment costumers?
Gain a higher share of the market
More effective promotion
Better opportunities of growth
Better matching of customer needs
Lack of information and data
Hard to reach customer segments once identified
Difficulty in measuring and predicting customer behaviopur
Useful for analysing competitors
Encourages use of market research
Help spot gaps in the market
Not guaranteed success.
How reliable is the market research
Just because there is a gap in the market doesn't mean there's demand.
1.2: Showing Enterprise
1.4: Making the start up effective
1.3: Putting a business idea into practice
1.5: Understanding the economic context