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Business Management notes - Coggle Diagram
Business Management notes
Tools
STEEPLE analysis
SWOT analysis (not recommended to use in IA or EE)
Steps of making a business plan:
Define your vision (vision and mission)
Set your goals and objectives for business
Define unique selling proposition
Know your market
Know your customer
Research the demand for your business
Set your marketing goals
Define your marketing strategy
Unit 1.1
Customers
are the people or organisations that purchase the products whereas
consumers
are the people who actually use the product.
Sole trader
is a self-employed person who owns and runs their own business as an individual.
The nature or purpose of business activity is to generate added value. (it becomes more valuable to customers)
Unit 1.3
Growth refers to the increase in a company's size, revenue, market share, and profitability over time.
Profit is the money you have left after paying for business expenses.
Protecting shareholder value means keeping growth of stocks stable so the shareholders get dividends.
Ethical objectives are the moral compass that guides a company's actions, decisions, and interactions with its stakeholders.
Unit 1.2
Private sector companies are companies that use ethical business practises to achieve their social aims related to the needs of local communities and societies. Unlike charities that rely on donations, private sector for profit enterprises need to earn financial surplus to survive and operate as a sustainable business.
Public sector companies are state-owned enterprises run in a commercial way. These public sector companies are owned either partially or fully by the government. For example some national airline carriers and airport authorities.
Cooperatives are for-profit social enterprises owned and run by their members such as employees and customers with a common goal of creating value for their members by operating in a socially responsible way. For example, financial services, childcare services.
Non-profit social enterprises are businesses run in a commercial-like manner but without profit being the main goal. Instead non-profit organisations use their surplus revenues to achieve their social goals rather than distributing the surplus as dividends to its shareholders or owners. For example, public libraries and state schools.
Partnership
(limited or equal)
Easy to start
No extra taxes
Share expertise
More likely to get loans
unlimited liability
Sole trader
Easy to start, being your own boss
Unlimited liability (you are personally responsible for losses and debts)
Hard to raise financial capital
Can be hard to find skilled labour
Limited managerial experience (easier to make mistakes)