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1.4 - Coggle Diagram

- - - - Start-up
        
        Survival
        
        Supporting family
        
        Getting noticed within Market
      - Established
        
        Expansion (funding required)
        
        Increase, sales, profit, brand exposure ect.
        
        Working towards a social goal, e.g pledging to become more sustainable
  - - - Focus groups
      - Surveys/ Questionaires
      - interviews
      - Data trends (in business' figures)
    - - Government figures
      - Other incorporated business' published figures
      - Spending trends (economy)
- - - - Manufacturer-wholesaler-retailer-customer
      - Manufacturer-retailer-customer
      - Manufacturer-customer
      - Manufacturer-wholesaler-customer
  - - - Online e.g website adverts/social media- easier to reach a large amount of people yet can remove the human aspect of the business as there is no physical interaction
      - In print e.g newspapers/flyers
      - Radio/television- starting to decline with the rise of social media
      - brand placement e.g sponsorship or product placement- common with sports teams and TV shows and allows the brand to be associated with a team allows for supporters to more likely purchase from the business.
      - In person e.g billboards and posters
  - - - Appling promotional sales to lure in customers e.g BOGOF
      - Increasing brand exposure by sponsoring a sports team, this will make the brand more memorable as the supporters can associate good memories with the business, thus increasing potential for revenue and brand image.
      - The business can become an E-tailer to reduce costs (e.g via overheads and rent) and thus offer lower prices to customers.
    - - During a recession customer incomes are likely to be lower as unemployment levels increase, therefore the business might lower its prices or offer discounts in order to keep sales stable.
      - With technology becoming more popular the business could advertise on Social media as it allows them to reach a large amount of people whilst engaging with a modern customer audience.
      - The business can alter the purpose of a product e.g vegan sausages in order to fit newer profitable trends/requirements
    - - The business can trade via E-commerce/M-commerce to make purchases more convenient and follow the trends in society (paying via Paypal etc.)- Also reduces costs for the business
      - Production methods can be more efficient and reduce labour costs therefore the business can charge a lower price
      - Technology allows for the business to promote more efficiently using social media and website to monitor consumer behaviour and thus target consumers with products they would most likely be interest in (cookies).
- - - - (in theory) they can keep all profit
      - They are able to be their own boss, making their own decisions which allows the business to run more smoothly (unlike collaborating with shareholders)
      - The business is quick and easy to set up with less legal aspects to draft before operating
    - - The owner/business suffers from unlimited liability
      - The owner must pay income tax
      - There is a risk of the owner working long hours
      - The owner has a high level of responsibility which can be stressful and unhealthy
    - - Mum and Dad!
      - Carpenters
      - Barristers
      - Hairdressers
  - - - Quick and easy to set up
      - Allows responsibilities and decisions to be shared
    - - Conflicts can occur between owners which can negatively impact the business and employees e.g decisions are made slowly
      - The profits need to split which can lead to further conflict if one owner is more active than the other
      - Both owners need to pay income tax
      - A deed of partnership needs to be signed which can lead to further conflicts and set back the initial start up.
      - Mostly the business suffers from unlimited liability
    - - Procter-Gamble
      - Pret a manger
      - Carphone Warehouse
  - - - Business/owners benefits from limited liability
      - The business might find it easier to raise capital in times of hardship or to fund new ventures
      - The business' owners can choose who invests in the business which makes the business more secure
    - - The business legally must publish its figures, therefore competitors can compare and make informed business decisions to accommodate
      - This type of business is normally more time consuming and costly to set up
      - Selling sales in the business dilutes the ownership possibly leading to conflicts between owners or the original owner losing control
    - - Huawei
      - Aldi
      - Bosch
  - - - Owner can benefit from the franchisor's experience and knowledge therefore making the business set up more smooth
      - The business can benefit from the franchisor's brand image and prestige therefore needing to spend less on advertising
      - The business is at lower risk of failure (see above)
    - - The franchisee must pay royalties to the franchisor therefore reducing their profits
      - The franchisee is limited by the franchisor's requirements and any changes the franchisee wishes to implement must first consult the franchisor (leading to conflicts)
      - It can be expensive to set up as the business must finance to be to same quality as other established franchises
    - - Subway
      - McDonald's
- - - - Bulk-gaining products- A product which is larger than the sum of its raw materials e.g Car- might lead to a manufacturer choosing to locate closer to market as a larger product is harder to transport
      - Bulk-reducing products- A product which is smaller than the sum of its raw materials e.g Iphone- might lead to a manufacturer choosing to locate closer to raw materials as the larger materials as harder and more costly to transport.