Studied by 18 people
enterprise, planning, ownership, aims/objectives, stakeholders, growth
goods
tangible products e.g. food, clothes
services
intangible products e.g. haircut, train journeys
invention
creating something brand new
innovation
adapting an existing product
needs
food, water, clothes, shelter, warm
wants
event tickets, designer clothes, holidays, cars
needs of an entreprenuer
land, labour, capital, enterprise
enterprise
willingness to take risks, organise resources and make decisions
characteristics of an entrepreneur
creativtity, risk taking, determination, confidence
risks
financial loss, business failure, lack of security
minimising risk
business plan, market research, ensuring you have sufficient money
rewards
profit, independence, success
business plan
business idea, smart targets, market research, revenue, costs and profits, cash flow, sources of finance, location, marketing mix
purpose of a business plan
minimise risk, obtain finance
sole trader
a small business with one owner. may have other employees
partnership
typically between 2 and 20 owners. can have other employees
plc
public limited company. risk of hostile takeover
ltd
private limited company. shareholders must be invited
smart targets
specific, measurable, achievable, realistic, time bound
aim
overall goal for a business. e.g. survival, profit, growth
objective
steps taken to achieve goals
shareholders
part owners of a business
stakeholders
people with an interest in a business e.g. customers, employees
organic (internal) growth
slower method of growth using the businesses own resources
external growth
when a business merges with or takes over another business to expand
backwards vertical
merging with the business before them in the supply chain
forwards vertical
merging with the business after them in the supply chain
horizontal merger
merging with the same type of business
diversification - merger
merging or taking over a completely different type of business
economies of scale
cost advantage that a business obtains when the cost per unit decreases because the scale of the business
diseconomies of scale
a cost disadvantage to a business, the cost per unit increases due to too much expansion
customer needs
price, quality, convenience, choice
identifying customer needs
helps to generate sales and makes survival more likely
secondary market research
done by others e.g. competitors prices, internet
marketing mix
price, product, place, promotion
factors affecting price
inflation, the quality of the product, cost of production,
factors affecting place
close or far from the target market? footfall traffic?
product
refers to what the company is selling. physical or digital items. must be what the customer needs or wants
price
how much money the product or service is sold for. businesses use the different types of pricing strategies
place
refers to how the product is distributed. directly, through a shop, online or by a wholesaler. the choice can significantly impact overall marketing
promotion
raising awareness of the product/service. using financial promotions, pr and social media
marketing mix
product, promotion, price, place
market data
information that a business needs to know about the characteristics of a particular market - changes in demand, target market and market share, impact of change and effect of promotional activity
tall structure
sometimes referred to as hierarchical. many layers of management leads to clear accountability
flat structure
only a few layers of management. typical in small businesses
human resources
coordination of all issues relating to the people a business employs to ensure that the business is able to operate
span of control
the number of staff that a manager has responsibility for
chain of command
the route instructions and communication flows from the top to the bottom of a business
delegation
a process where managers give tasks to employees further down the chain of command
delayerings
money saving process where a business removes layers of its management to make a flatter structure
subordinates
members of staff below a manager in the chain of command
insufficient communication
negatively impacts efficiency and motivation as employees do not understand what is going on or what they have to do
excessive communication
too much or the same information from multiple sources. feeling stressed/overloaded
Note 
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