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business: topic 1.4- making the business effective (marketing mix…
business: topic 1.4- making the business effective
options for a start-up and small business
franchising
sell the rights of your business to franchises
limited liability
plc
owner not personally responsible for any debts
unlimited liability
partnership
sole trader
youre personally responsible for all debts
types of business ownership
ltd
private limited company
+easier to raise finance
+stable structure even when shareholders go
+personal wealth protected by limited liability
-big admin costs
plc
public limited company
+if a shareholder leaves, business can carry on
+gets to choose who they sell shares to
-many controls and regulations
-original owners can lose control
-many legal formalities
sole trader
owned by a single entrepreneur
+all profits go to owner
+easier to keep overall control
-less capital
-entrepreneur must be of service 24/7
partnership
share profits with shareholders (dividens)
+partners may have more experience in certain areas so can help
+partners bring money into business
+shared responsibility
-disagreements of business decisions
business location
influencing factors
internet
proximity to
market
competitors
labour
materials
marketing mix
product
place
price
promotion
low cost strategy
mass
price sensitive customers
produced
market
media
located everywhere
differentiation strategy
niche market
add value
sell at premium price
niche market media
exclusive locations