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Enterprise, Business growth and Size C3 - Coggle Diagram
Enterprise, Business growth and Size C3
Entrepreneur
Takes risk to start a new business
Characteristics
Hardworking
Effective Communicatot
Creative
Risk taker
Optimistic
Self- confident
Independent
Importance of business plan
Financial forecasts
Market
Opportunity/ Chance
Objectives = Clear vision
Business
idea for business
skills and expertise
Business plan
Which product
Cash flow
Location
Costs
Required Resources
Measure and compare size of business
Number of employees
Value of Quantity
Value of Sales
Capital Employed
Why business GROW
Increasing
market share
Influence over
suppliers
Increase profits
Influence over
customers
Economic scale
How business grow
Internal growth
Expand existing businesses
External growth
Mergers or Takeovers
Conglomerate
Merge or takeover completely
different industry
Vertical
Forward
Backward
Merge or takeover different industry
and stage production
Horizontal
Take over same industry with
same stage production
When a business buys another existing business
Merge of two or more
businesses
Why some business remain SMALL
Owner’s objectives
Market size
Type of industry
Why some businesses
FAIL / closed down
Risk of starting a new
business
Poor
Management
Over-expansion
Fail to plan
for change