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Unit 1 :<3: :<3: (Legal ownership (Private limited company (ltd) -…
Unit 1 :<3: :<3:
Business Environment
- Primary, produce raw materials from nature factors of production. -Land(natural)
-Labour(workers)
-Capital(buildings)
-Enterprise
- Secondary, turn raw materials into finished goods, including constrction.
- Tertiary, provide services like distribution
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Business Objectives
Survival - as a new business in early stages of trading during difficult economic periods, when there is a threat of takeover
Financial - profit, revenue, sales, break even, reducing costs
Growth - market share, physical expansion, increasing provision, diversification, economics of scale
Reputation - ethics, corporate social responsibility, unique selling point, quality, customer service
Enterprise - competition, market niches, customer demand
Legal ownership
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Private limited company (ltd) - can raise funds from investors for example friends and family eg. river island and clarks.
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- original owners stay in control
- investors with skills and expertise
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- shareholders have to agree about how profits are distributed
- greater administration costs than setting up s a sole trader or partnership
- finance limited to private investment
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- government / public owned
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- community interest company (CIC)
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Business Planning
-Internal: - Retained profit which is long term and which has been made previously. - Savings which is to provide your own money and is also long term.
-External: -Trade credit is offered by suppliers to allow the business to purchase goods and pay later.
Sources will depend on the amount needed, legal status and the reason why the finance is required
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Marketing
Observation - positives and negatives, cost, time, expertise. - Focus groups - surveys, questionnaires, technology based analysis
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Market Strategy
Marketing mix: Place, price, promotion, people, physical environment, process, product
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Above line: TV, radio, newspapers. Below Line: social networking, sponsorship, personal selling
Human Resources
Training, recruitment(interviews and short listing), pay and benefits, legal compliance, redundancy, discipline
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