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Revision mindmap Unit 1, Chapter 5, Do not confuse this with the sectors -…

- - - - Unskilled
      - Temporary
      - Skilled
      - Permanent
    - - Risk takers
      - Decision Maker
      - Coordinators
    - - Factories/offces
      - Machines
      - Finance
    - - Raw Materials
      - Buildings
  - - - the benefit of the next most desired
        option which is given up.
  - - - Determining a location
        
        Competition
        
        Sourcing capital (finance)
        
        Building a customer base
        
        Identifying successful business opportunities
    - - Poor management skillsPoor management skills
        
        Changes in the business environment
        
        Lack of cash and working capital
        
        Lack of record keeping
- - - - Corporate culture
      - The size and legal form of the business
      - Public-sector or private-sector businesses
      - Number of years in operation
      - Ethics
  - - - inform other groups about central aims
      - prove motivating to employees
      - include moral statements to guide and direct employees' behaviour
    - - too vague and general
      - based on a public relations to make stakeholder groups feel good about the organisation
      - can not be analyse
  - - - Assess the problem or situation
        
        Gather data about the problem and possible solutions
        
        Consider all decision options
        
        Make the strategic decision
        
        Plan and implement the decision
        
        Review its success against the original objectives
  - - - Avoid being ‘caught’ acting unethically which leads to bad publicity
      - Attract ethical customers
      - More likely to be awarded government contracts.
      - Can attract well-qualified staff
    - - Using ethical and Fairtrade suppliers can add to business’s costs
      - Limiting the advertising can lead to lost in sales
      - Paying fair wages – even in very low-wage economies – raises wage costs
- - - - Public corporations
    - - Limited
        
        Key properties
        
        Continuity
        
        Legal personality (separate)
        
        Limited liability
        
        Forms
        
        Private limited
        
        Public limited
        
        Legal formalities
        
        Articles of
        association
        
        Memorandum of
        association
      - Unlimited
        
        Sole trader
        
        Partnership
      - Others
        
        Joint venture
        
        Franchises
        
        Holding companies
        
        owns and controls a number of separate businesses
        
        Cooperative
        
        All members (owners) share workload
- - - - total sales of business / total sales of industry ×100
    - - industry. The number
        of guest beds or guest rooms
  - - - Reduced rate of profits tax
      - Loan guarantee scheme
      - Information, advice and support
      - very economically deprived areas,
        
        Lack of specialist management expertise
        
        Problems in raising both short
        
        Marketing risks from a limited product range
        
        Dif iculty in finding suitable and reasonably priced
        premises
    - - of er personal service to customers
      - it easier to know each worker
      - able to adapt quickly to meet changing customer
        needs
    - - few opportunities for economies of scale
      - may not be diversified
      - limited access to sources of finance
    - - Strengths
        
        Reliability and pride
        
        Knowledge continuity
        
        Commitment:
      - Weaknesses
        
        Informality
        
        Traditional
        
        Succession/continuity problem
        
        Conflict
  - - - a higher
        market profile and greater bargaining power
    - - expanding the business and
        achieving higher sales
  - - - Takeovers
      - Mergers
    - - Díadvantages
        
        Less risky
        
        Easier to control and coordinate
        
        Ensures continuity
      - Diadvantages
        
        Slow
        
        Divorce between ownership and control