EXTRA LESSONS BUSINESS

Added value - different between the selling price of a product and count of the raw materials used to make it

Increasing in the difference between the cost of purchasing bought materials and the price and the goods are sold

To add extra features to a product and the customer is willing to pay more after the value has be added

WAY OF ADDED VALUE

1. Creating a brand( brands represent quality and some times status )

2. Consumers are willing to pay more for products which have a strong brand attted to it for example why does of Nike selling better  then it puma ) because of its brand image. The difference is not that much

3. Advertisements - through advertising the business can create a strong brand loyalty ( have relationships with our customers) if you create good loyalty you can charge more for good and services

4. Providing customized services - business providing better personalized services to there consumers add more value. Consumers are willing to pay more customized services

5. Provide additional features - a product or service with additional features or functionality can make the consumers pay extra. This very often seen in a car model. For example Toyota has 12 version of its innovation models the basic engine and built is the same but the price increases as additional features are added

6. Offering convenience- consumer love convenience if you get a product or service without much  effort then you might pay a premium for it ( free home delivery of weekly groceries )

THE BENEFITS TO A BUSINESS OF ADDED VALUE

• the business can charge more to its customers this leads to more profitability for the business in the long run

• Through adde value the business can differentiate its self from its competitors. But added more value to the good and services a business can stand out among its competitors as product provideimg premium quality

• A business can sever the cost of advertising and other promotional activities once it had created a prespertion of high quality and and brand loyalty among its customers. That added value helps cost cutting in the long run

BUSINESS ENVIRONMENT

the business is ever changing so it’s flexible to always change

The internal  external environment

Internal environment

• the operating environment of the business

Elemels Of internet environment ( they are controllable )

1 .  Includes Same organization structure

1. Leadership and ,management style

2. Organizational resources

3. Vision ( how does the looks like ok )

4. Mission

5. Organization culture ( looking at there believe )

External environment

Market and micro environment

  Challenges for this environment are not easy to control. And the environment is dynamic.. it’s elements keep on changing

ELEMENTS

• physical environment

• Global or international environment

• Political environment

• Economic environment

Business environment is ever changing which is dynamic and the businesses mush adaptive to the challenges and formulate strategies to copy with this challenges

WHAT A BUSINESS NEEDS TO SUCCEED

1 .  Labour is skilled or unskilled temporarily or permanent workers

2 the business land  required the side of builds renewable and non renewable goods resources to produce goods

1. Capital the business needs money factors and machinery

2. You need customers are agents which then purchases product made buy firms .

3. Supplier the business will raw materials or other services form other businesses

4. Government provide roads , foods , law and the business in one way or the other

WHY BUSINESS FAIL

1.poor planning, the business must set clear objectives aim full target that they seek to achieve

1. Lack of experience

2. Poor management new business owners  frequently lack business and management expertise such as finance , purchasing , selling production and hiring management employees

3. Insufficient funds

4. Poor location - a good business location may enable a struggling business to untimalety to survive and thrive and bad location would spoil disaster to even best management of enterprise

5. Poor stock management- to much of cash being block also the stock brings in additional cost burned of matinging it and storage and if we keep stock in the warehouse… the risk of it getting damaged

Examples of we keep food stock for long of it will expire and it because a lost to the business

1. Over investment in fixed  assiec like machinery these can’t be converted into cash

2. Poor credit arrangement management - business might take to much of debt and might find if difficult to services them. Poor credit arrangement , forward planning and cash flow problems might contribute to it

3. Personal use of business funds -owners  of small businesses usually don’t differentiate business funds and personal funds if

ROLES OF ENTREPRENEUR

is a person who is willing and able to create a new business idea or invention and that’s risks in perusing success

1. Successful entrepreneur can identify and pursue opportunities, they create value for customers and build thriving businesses

2. These individuals bring unique entrepreneurial sprint into the business which helps drive it forward and expand

3. Entrepreneurs fulfill important roles in business which are organized resources including finance facilities people( employees) and equipment

4. They make divisions at the starts and throughout the life of the business.

5. Taking risks to maximize returns and maintain at a competitive advantage.

WHAT DO ENTREPRENEURS DO

1. They gather and coordinate the resources necessary to start and operate a business

Example Michael dell his computer company in garage organizing resources such as computer, software tools and employees

1. They take  financial personal professional or  conceptual risks

Example : an entrepreneur can invest Life savings or a quit Secure job and start there own business

1. these risks can pay off with great rewards but the can also lead to failure and financial loss

INTRAPRENEUR

Is an individual task with creating or innovative products or processes within a already established business. Intrapreneurship evolves encouraging  employment to improve and think like entrepreneurs

1. The Business encourages them to take risks , innovate and develop new ideas and projects that may benefit the business.

1. Business can tap into the creative potential of there employees and generate new products or services or process that can drive growth and competitive advantage.

2. This helps to create a culture that generates a sense of ownership and engagement of more of employees which includes motivation and helps to retain help talent

3. To promote Intrapreneurs businesses may provide resources to employees or offer incentives or rewards to successful projects

4. Intrapreneurs for filled important roles in businesses that complement those  of a entrepreneur. Innovative including resources in the most effective way developing new ideas and processes can identify new techniques.

5. Organizing day to day decisions that drives a business forward  in pursuit in business owners to take calculated  cost and follow new parts

WHAT DO INTRAPRENURES DO

1. They find the best use of existing resources identifying new ideas and techniques and implement innovative processes

Example: an intrapreneur can I tend to find a used to reduce waste  in the production process

1. Intrapreneurs make on going decisions to ensure the business achieve its objectives

Example:

1. They Pursue it  by convincing business owners to the develop and introduce new products,  enter new market, and implement know new ways working

Example : an intrapreneur may pursue a business owner to launch a new product in a new market

THE CHARACTERISTICS OF ENTREPRENEUR AND INTRAPURNEURS

Entrepreneur and  intrapreneur‘s require a require a unique set of characteristics and skills

• commutation

• Team-working

• Problem solving

• Organization

• Information technology

characteristics

• they must be creative

• Hard working

• Must be risk taker ( nothing   ventured nothing gained )

• Entrepreneurs are innovators they usually identify the consumers needs and they are ever-changing

• Entrepreneur‘s must be self confident

• They must be dependable in the sense that they must be successful owners and must maintain a high standard

• They must have positive attitude ( it helps them to be strong )

• They must be resourceful

• Optimism ( looking forward to a better future)

BARRIERS OF INTRAPRENEUR

1. Make a decision to start up a business is rarely easy  They face a series of barriers that they must over come if they are a success of an enterprise

• lack of finances ( they my not to able to invest there own money in a business)

• Leander my be redundant to be able to approve loans due to the lack of a trading record

• They may also be unaware of grants or other available financial support for new businesses

• Lack of customers ( there is no guarantee that’s an unknown new business Will appeal to customers)

• Failure to attract customers to but it’s products means that a business is unlikely to survive

• Finding a sustainable location ( the best location are often to experience for new business) many entrepreneur run there business from their  own homes to minimize operating costs

• Lack of opportunities ( entrepreneur need to have good idea that has the potential to generate a profit , they also need time , experience and sufficient eidence to support there decisions to take the risk in pursuing it )

• Existing competition ( well known businesses that offer a similar product or service may already exist, competition is likely to have greater market knowledge and existing customer base as well as financial resources to invest in promotional activities )

RISK AND Uncertainties

Business Uncertainty’s is when a business can’t predict what is going to happen or Direct influence.

Factors that causes uncertainty

1. Environmental factors such as Japanese tsunami March 2011

2. Economic changes such as Covid lock down

3. Collapses in the backing system

4. The entry of new competitor

5. changes in local and national legislation ( laws )

6. Changes in the publical party government the country ( risks can measured allowing businesses owners to make informed decision before taking action. Research market inside and creating a business plan can help reduce risk

Entrepreneurs have barriers levels of risks they are willing to accept. Risks entrepreneur may prefer to start small and achieve slow growth . Entrepreneur may prefer to share risks with others in partnership or protect there personal aspects of forming a private limited company. Successful entrepreneur is can mange risk and quickly to unfraternity’s in the business environment.

BUSINESS , ENTERPRISE ABD THE DEVELOPMENT OF A COUNTY

Government policy also includes support to entrepreneurs to encourage them to set up new business or take steps to grow there business.

The government  recognizes the contribution  that small business make to the economy and offers a range of incentives to entrepreneurs in including

1. Training programs to equip businesses owners with skills they need to operate an enterprise

2. A streamlined an application process for low cost government low cost loans. Mentor invectives where entrepreneurs are partnered with expert who can provide advice on training and business development services

3. Examination from income tax and minimum wage law for a limited period

HOW SMALL BUSINESSES CONTRIBUTE TO A COUNTRY ECONOMIC DEVELOPMENT

Roles of business enterprise development of the country

1. Business enterprise providers employment

2. They pay taxes ( they income taxes)

3. Enterprise businesses increase the of the company the of domestic growth  products domestic Growth ( a measure of the total market value mangers value of financier total in a country at a given period time ( total market sales and how much we are obtained )

4. The satisfy the needs and wants of the people

5. They bring foreign currency if products sold the country ( reducing provety  levels )l

SOICAL ENTERPRISE

Is to a business with mainly social objectives that reinvest most of its profits in benefiting in society maximizing return to it owners. The primarily for social enterprise is the common goods( shared interest  sometimes is available and accessible to everyone in a society and benefits with in society

Ex : educational, roads, foods

They use the method and disciplined of business and the power of the marker place to advise there social environmental and human genders.

AIMS OF SOCIAL ENTERPRISE

1. they operate for the world being for society

2. Make profits is not main aim (the main aim is to solve social problems served by people) they aim at helping

3. Profit is kept to provide more services ( they normally provide health and education) it generates income through trade

THE MAIN OBJECTIVES OF SOICAL ENTERPRISE

This aims are often referred to as the triple bottom line . This line is used to measure the preforms of a business.

1. Economic ( profit that is economic)

2. Social ( people)

3. Environment ( planet ) to keep planet sustainable

BENEFITS OF SOICAL ENTERPRISE

1. Social enterprise put high Social returns or investment other.  One hand there produces direct measurable public benefits

1. Classical employment focus on Soical enterprise for example might services for public aims  Physical responsibility ( it reduces the margin cost of public support for people facing barriers by providing a pathway to economic self sufficient for those that are employed. Public safety makes the community in which of operates safer by disrupting cycles of proverrt trying. Incarcerations , chemical disaster, homeless safe

1. Economic opportunity it improves our pool of human capital and create job in communities in economic renewal

2. Social justice It gives a changes for those who are in need

BUSINESS STRUCTURES part 2

Economic sectors

  3 stages

Primary sectors

Secondary sectors

Tertiary sectors

Primary sector

The first stage of production all business which are related with a instruction of raw materials from Mother Nature such as mining , fishes , farming

Raw material that obstructed are then sent to the secondary factory with then deal with the processing or convertIng raw material into in to finishes good

Secondary sector

All businesses which manufacture and processes the raw materials which can be used by earn customers are known as secondary businesses. These include clothing , buildings ,  construction, computer Assembly , shoe factories

Tertiary sector

The one that provide provision of services take place to the  consumers

Transportation, banking , grocery store , education, show rooms , hotels

A business may exist in all three  sectors. For example the  British petroleum has its own oil well . It’s oil is a primary factor this oil is then  converted into petroleum and other buy products with is secondary and then after then processing oil into useable products, BT then sells it to the British consumers through it network of petroleum with falls under the tertiary

1. Some business might have a 3 economic sectors but usually some businesses only have one sector that they mainly focus on

PRIVATE AND PUBLIC SECTORS

Business organizations

Are classified into two public sector business and private sector business

PRIVATE SECTOR

This factor comprises businesses owned and controlled but individuals or groups of individuals. Some businesses are  commonly found in the free market economy. There main aim is to make profit throughs the selling private goods

Example: one sold trader, two partnerships, 3 private limited companies, 4 public limited companies, 5 cooperatives

SOLD TRADER

A sold trader is a business owned and controlled by one person, it is a one man business

Formation:

( there is no legal formalities required ( so there are no laws… )

Ownership:

it’s owned by one person

Legal status :

the business is not recognized as a legal person it is referred as an unincorporated business . The business and the owners are two on separate  equities  meaning that business is is liable to its debt and then the owner is liable to its debt

Liability:

the owner suffers from unlimited liability if the business fails the owners lose personal  property

Continuity:

( there so no continuation if the owner dies ) meaning the business

Tax issue:

it doesn’t doesn’t pay corporate taxes but it pays income taxes on the profits made

ADVANTAGES  of SOLD TRADE

1. It’s easy to form there less capital  investments and there’s no legal

2. The owner has direct control of the business mean you can make decisions by yourself

3. All profits goes to the owners

4. The owners had personal contact with customers

5. Also easy to quit the business

DISADVANTAGES

1. Unlimited liability ( the owners is personal for all debt in the business and pay )

2. Can raise lower capital investments ( they don’t have enough money to invest in the business)

3. Limited management expertise ( they don’t know how to manage to business)

4. Poor quality session making

5. Difficult in attracting. Quality employees

6. Lack of  continuing when the owner dies

PARTNERSHIP

Is when two or more but not more than 20 are will to start there own business

With shared capital investment and usually shared responsibility. To enter a partnership, partners can have a verbal agreement or ugliness

A partnership agreement includes:

1 . I’m out of capital contribution by each member

1. Salaries are wages that are paid to each member

2. Write an obligation of the partner

3. Procedure for partnership is the solutions

4. The name of firm ( the name of the business)

5. Date of writing

6. Duration of partnership

7. The business to be done ( what exactly you will be doing in the business )

Formation :

there are fewer legal formalities

Onwership:

Owned by everyone in that business

Legal status:

Unincorporated ( meaning the business and the owners are not legal separate)

Liability:

They suffer from limited liability

Countuity :

When the key partner dies,  the business may come to an end

ADVANTAGE

1 . Is easy to form

1. More capital is available

2. Diversity of skills and expertise

3. Decisions are made

4. Personal contact with employees and customer

5. Risk is spread over a number of people

6. The develop from a government

DISADVANTAGE

1. unlimited liability( all the owners assets are potentially at risk )

2. Disagreements can to windings of the business

3. All partners are responsible for the something of each other

4. If the key partners dies the business may fail

5. Profit on carrying the ratios necessarily equal

6. The owner can taken over the and Partner will lose Control of the business

LIMITED COMPANIES

know as joint stock companies

These are business where a number of owners ( shareholders) poll in there resources together and share the profits  proportionately. The debt of the company are  separate of the debt of the owner

Ownership:

Can be easily transferred to and many of companies can be passed down many of these generations

Features:

1. Separate legal entity

2. Limit liability

3. Owners are called shareholders ( buy shares)

4. Shareholders receive. Dividend payments

5. The board manger of  the company. The company doesn’t of  article of Association

6. Shareholders hold annual general meeting ( a share is a cefefication  Concerning part ownerships of a company. This certificate is also  entitled Shareholders dividends . A shareholder is a person  who owns shares in a limited company

PRIVATE LIMITED COMPANIES

is small - medium sized business that is owned buy shareholders who are open members of a family business

These companies can not share sells to the general public they have 2 but not more than 50 shareholders. The business should submit Financial statements and put reports to the register of company.

Formation:

these are  complex legal formalities and two documents should be drafted by the founders of the company. These documents include Memorandum of Association and Articles of Association

Ownership:

2 to a maximum of 50 shareholders

Management in control:

It is managed by the board of directors

Legal status:

The business is recognized as a legal person

Liability:

The shareholders enjoy limited liability and if the business fails the shareholders personal asses Can’t be taken they only lose The capital they have invested in the business

Continuity :

the business continue

Taxes :

double fixation the shareholders pay tax on their income and the business pays corporate tax

ADVANTAGES

1. easy to raise capital

2. Shareholders has limited liability

3. Greatest status then unicor  business

4. Is it to transform to a public limited company ( change funds / status)

5. do not have to publicize annual accounts press

DISADVANTAGE

1. Not easy to form

2. Have to fill complex tax forms

3. Can’t raise capital through

PUBLIC LIMITED COMPANIES

Are large businesses with the right to sell  Shares to the general public. The shared price are something on the stock . They have alert 2 shareholders to a maximum limit . Shares  are easily transferred . The public can be invited to apprise the shares sometimes

Annual reposts are supposed to be public in the press they must keep a register for directors and investors shareholding

Formation :

They are more complex legal formality 3 document should be drafted by the owner of the company . The three documents include articles of association , memorandum of association , and the prospector

Ownership:

Owned by 2 or no maximum limit or numbers

Management in control:

By the board of Director

Legal status :

The business is recognized as a legal person and referred as incorporated business

Liability:

The shares holders enjoyed limited liability if the business fails the shareholders assets don’t be taken they only owe the capital that they have invest in the business

Continuity : there is continuing

Taxes issues: There is double taxation: shareholders pay tax on their dividends as well as the business paying corporation tax.

ADVANTAGE

1. easy to raise capital through plotting shares just stock change

2. Operate on a large scale

3. Unlimited life

4. employees can become shareholders including loyalty ,

5. Shareholders enjoy limited liability

DISADVANTAGE

1. Difficult to form

2. Files open for the members of the public

3. Decisions are hard to make due to the large size of the company

4. No personal type of customer

5. Conflict of interest

6. Shareholders are usually interested in expanding in the business

CORPORATIVE

Associations of people United voluntarily to meet common economic Social and cultural . Usually members join together.  To purchase good they canT afford individual.

Main features:

1. Formed by people who want to work together

2. It is voluntary

3. Member s make a fit-able  contributions

4. Risk and benefits are shared equally

5. They are democratically control

6. The name ends with CO’OP

FORMATION : members have a common goal and these Members with draft a Constitution and the management formation is selected at the general meeting

ADVANTAGES

1. IT IS EASY TO FORM ( any adult can form a corporate)

2. No legal are formalities

3. It’s open to everyone

4. Members enjoy limited liability

5. Members get good and services at reasonable prices

6. There is continuity

7. Government provide special assistance

8. They are usually taxes exempted

DISADVANTAGE

1. unable to raise large amount of financial resources

2. It is managed by people who lack on required management skills

3. Can be affected by conflict

Franchise

Are agreement where one party ( franchisor run another party which is the franchisees right to use if trade marks or trade names  as well as certain businesses suitable)

The franchisee sells the franchise product or service

Trades under the franchises trademark or trade name and benefits from the franchises help and support

In return The franchisees usually pays fee to the franchisor and the precent  of the sells revenue . The franchisees owes the outlet they run but the franchisor it keeps control over how products are marketed.

Well-known businesses that also franchises identify include

Butter , McDonald’s, chick inn, nandos , kfc

Contractual obligations :

1. A franchise agreement can be drafted and signed by both parties. This is a legal contract in which the franchiser gives the  franchisees the right to us the business trade mark.

2. The franchisor is not allowed to open a similar Business close by

3. It must specify the franchisee in its monthly loyalty payments

4. They agreement lays out details of what duties each party perform

5. It also spreads  the duration of the franchise contact

Advantages to the franchisees

1. Franchisees benefit from free open support( for example site selection and designing financing )

2. Franchisor assist in training staff ( franchisee won’t have the cost to train because it is the franchisor duty)

3. The franchisor advertisement on behalf of the franchisees ( saves money

4. Risk is reduced and can be shared by the  franchiser

5. Relationship with suppliers have already established

DISADVANTAGE

1. The franchise might go out of business or change they way they do things

2. The franchise agreement usually includes restrictions on how you run the business

3. The franchisees must pay and initial Fee and continuing fee to continue to use the trademark

4. Franchisees cannot sell goods to other suppliers

5. Bridge of contract and results into a penalty charge

ADVANTAGES TO THE FRANCHISOR

1. It is the source of income to the franchiser( loyalty)

2. Risk of business is spread around different franchises

3. A network of outlets gives the business a better support

DISADVANTAGE OF A FRANCHISOR

1. Other franchises can give the brand a bad reputation

2. The franchise or must provide franchisees and on going support with then requires Constant research

3. Setting up a franchisees cost a lots of money

JOINT VENTURES

two or more business agree to work closely together on a particular project and create a separate business division to do so.

Joint venture is a long term business relationship but a short term relationship o a business single project.

The business is not a separate legal entity once the joint venture made it’s goal

Look for a example

They a joint  venture agreement such cover

1. The parties goal

2. The objectives of the joint venture

3. Contribution made by its each party

4. Its solution procedures

5. How to joint venture is terminated

6. No disclosure agreement

7. Day to day management

ADVANTAGES

1. Provide companies with opportunities to gain capacity and expertise

2. companies to have access to new technology

3. Access to better resources including personalized stuff and Technology

4. Sharing risks with a convention partners

DISADVANTAGE

1. The business fail of a partner will put the whole project at risk

2. Tiles of management encounter but be different that the two won’t blend will together

3. The parties don’t provide enough support in the early stages

4. Errors and mistakes might lead to one blaming the other

Strategic alliances

In agreement between Two companies that have decided shared resources to start a project

Strategic alliances is less involved then a joint venture

The main purpose is to my allow to organizations, individuals or other entities to work together common goal

Example:

1. An agreement with a local university

2. agreement with the supplier

3. Agreement with the competitor

HOLDING COMPANIES

this refers to a business organization that own and control a number of separate business that’s something in a companies.

There are not a different legal form of business organizations but they are an increasingly common to own.

FMAILY OWNED BUSINESSES

these are business that are actively owed and management but at least two members of the same family.

Destion making:

is influenced by multiple generations of the family sometimes

STRENGTHENS:

Look it up

1. Commitment- There is a great is a greater sense of commitment and countability

2. The family owners offer show decircation to see the business grow, p prosper and passed on the future generations. This level of dedication is almost impossible to generate in nun family firm

3. Long term out look-  non family firms think about reaching each goals while family firms think years and and sometimes decades ahead ( this something and something allow for good strategies and decision making.

4. Increased cost - family members working at family businesses are willing to contribute there own finance and insure the long term organization. This could mean contributing capital or taking a pay card this advantages comes in handing during economic down turns where it is necessary to personal something in order for the firm to survive

WEAKNESS

1. Family conflict - family member long have bitter fights that can affect every single person within the firm . These conflicts are usually difficult to solve and the business can end quickly

2. Unstructured government - government issues starts as internal hierarchy and rules as well as the ability to follow and listen to the law. It as taking less sometimes and can lead to efficiency

3. Tunnel vision - the lack of outside opinion and diverse on how to operate the business family members for which the lack on required skills education and experience this has got have far reaching effects on the success of the business

PUBLIC SECTOR BUSINESSES -

also the businesses are owned but the government on behalf of the public. They can be districts counsels or public corporates. These are established by an act of Parliament they are corporate With a  separate legal something and management by board a pointed by the mister . The mister can be questioned by parliament over activities of the corporate

ADVANTAGES

1. They provide important need and services at reasonable prices

2. Provide employees to the majority

3. Enplament government policy ( charging low prices to reduce inflation)

4. They are a source of income the government

DISADVANTAGE

1. There are ensiffient and very wasteful due the lack of the profit sometimes

2. They tend to provide poor quality goods and services due the access of competition

3. Lack of motivation to the workers leads to enffiecy

4. They suffer from excessive political internfies

PUBLIC AND PRIVATE SECTOR CONTRACTS

1. Usually to provide services to the community ( if the transportation system is owed by the government and it running a bus services to a village and it is not getting enough customers, the government might still countiue as the main objectives to provide service and not to maximize profit ). Private sector business gives priority to profits and may end the service of it doesn’t it find it profitable to run the service.

2. Public sector sometimes for employment while private sectors main aim is to become efficient and cut costs in the process they might find something

3. Public sector business usually located in areas where is under development and create jobs like and income for local population. Private sector might not keep this things in consideration and may end and look for external economic of scales

SIZE OF BUSINESS (3)

the business are classified as small medium and large businesses and that the business are compared using there size

IMPORTANT OF BUSINESS SIZE

Government: the government may want to give assistance to small firms , also what to charge different tax rates to different firms

Investors: they may want to compare with its close competitors and what to know how safe it is into invest in a business

Customers : may prefer to deal with large sometimes they are the most something and less likely to see production in the near future

Workers: may want to be employed in large firms and since they are confirm about job security

Banks : they use business size to determine the maximum loan they can give to the business

(Some stakeholders)

MEASUREMENT OF BUSINESS SIZE

They are many ways of measuring business size

1. The number of employees (Small business employee few workers then large businesses since they operate on a small scale

2. The about of capital invested ( these business have large capital investments in form of properties and equipment all of the properties are bought of capital employees referred to the total value of all term finance invested. As business might not use a lot of investment in machinery and investment properties may be big

3. The sales turned over : these firms have a high turn over then small firm : the have a good reputation and more outlets and they can afford to advertise there product

4. Market capitalization: the total value share issues by the company and higher capitalization appeals to these firms . It is caulated by its formula ( current share price x total number of shared issued

5. Market share : the sales of the business as the proportion of the total market shares . Market measures as a percentage( total sales of business over total sales in the market x 100 )

WHAT IS A SMALL BUSINESS

a business that depends or that is independently owned and operate with a small number or individuals . Small business are privately owned for partnership or local some. Amount of capital employed

IMPORTANT OF SMALL BUSINESSES IN THE ECONOMIC

1. CREATES JOBS: small businesses employes the majority in any country

2. They can grow to become big firms : every business starts small. These small businesses will become large businesses tomorrow

3. Small business are flexible and response easily to changes and demand. They are owned by one or 2 individuals and they are more flexible adaptable to day to day operations

4. Small forms often cater to local demand . Local and something can place there orders

5. Small firms provide niche products and services which in large firm might over look .

6. In difficulty economic times blank and sometimes small businesses are important source of providing employment

7. They improve efficiency in the economic.

8. Small firm provide competition to larger firms through providing customized good and services

9. Small business provide informal presence ( they offer something  facilities to well known customers

10. They build economic growth ( they increases the production in the economy that the growth domestic product of economy with increase

DISADVANTAGE

1. Lack of capital they don’t have enough capital to stock enough goods

2. They sell poor goods

3. It is managed by employees who are less

4. Small

5. The risk of failure is high

6. Customer are unwilling to buy from small firms something are reluctant

7. Difficult to raise finance ( small businesses struggle to get loans from financial institutions and this will fulfill business growth

PROBLEMS FACED BY SMALL FIRMS

1. Poor funds ( lack of finance)

2. Poor debt management

3. Lack of mandernal skills of the owner

4. Small business can not reatire experience staff ( not have enough funds to pay them )

5. They find it difficult to arttract skilled staff

6. Poor stock management

HOW SMALL BUSINESS CAN SURVIVE

1. Being different ( product is different)

2. Sometimes The market by income . They can target niche market segments of high income customers posting there products as a permuim brand at high permuim ( modern sport cars , clothing

3. Small firms have the advantages of being able to respond quickly from being detain

4. The internet also allows small firms to direct access to consumers  by passing inter something . The world gives more firms opportunities of international marketing

5. Small firms can independent can join together to form a buying group to negotiate on joint orders

6. Small firms can survive by speciation a perium leach and offering an inclusive brand that exactly meant s the required means of there target segment.

7. You need to be customers orientated

8. Keep will documentation

BUSINESS GROWTH

It refers to increase in the operations , expanding production, and increasing the sale and the profit of the same

REASONS WHY A BUSINESS WANTS TO GROW:

1. To increase profits ( the chances of business success rising when the business grown internal an external

2. To reduce risk  ( business growth where the business introduces a product that is total is different from the existing ones  lower the risk of failure

3. To domains a business where it is a market leader has the power to take price

4. Reduces cost increase the output lead to economic scale . Economic scale refer to the cost saving advantage enjoy by a business in a relazte of an large operation

1. To fulfill the objectives of management ( it can be a planned move  by the management to spread the will of its business into the new market

TYPES OF BUSINESS GROWTH

External and internal (organic)

Organic growth - expanding the business from within by using its own internal resources. It involves expanding the business through increasing the number of employees , increase production of a product , opening new outlets and increasing quantity also

Exmaple:  look for it

ADVANTAGES

1. It can be financed through internal funds

2. Less risk than taking over other businesses

3. Allow business to growth at a more senseable rate

4. Builds on business strengths

DISADVAeNTAGES

1. SLOW GROWTH AND MY PERFER MORE RAPID GROWTH

2. Harder to do market share if the business is a marker leader

3. The business can be affected by cash problem

EXTERNAL GROWTH

growth achieved through integrating that is major and take overs .

TYPES OF INTREGRATIONG

Horizontal internal

Vertical

Conglomerate

horizontal integration- it appears when two firms which are in exactly the  Line of business and same stage of production joined together . It is the joining of rivals firms sales the same price of good

Exmaple: Nike and adidas because of shoe

ADVANTAGES

1. Reduces the risk of failure

2. Enjoy economic of scale

3. Eliminates competition

4. Have more power over suppliers

5. Easy to mange as in conglomerate majors

6. To strengthen financial sometimes

DISADVANBES

1. Pervious

Vertical integration- ouccurs when two firms in the same industry but have different stages  of production join together to form one business

Ex:

Vertical integration can be forward or backward

FORWARD VERTICAL INTEGRATION

occurs when a business joins with another which is in the same industry but some in production that is joining with a customer of existing business

Examples :

ADVANTAGES

1. Business control promotion and pricing of their own product

2. Gives a secure outlet for the products of the business and may now exclude competitors products from retailers outlets

DISADVANTAGE

1. Consumers

BACKWARDS

1. It occurs when a business joins with another business which is operating as a pervious stage of production. Business joins with another which used to be a supplier

Ex: realtor made in manufacture this a movement from triart sector to secondary sector

ADVANTAGES

1. Greater control over quality , price and

2. Emilates

DISADVANTAGE

1. Lack of control of the customers

Conglomerate

1. This ingtration is between firms in complete different line of businesses or industries . A firm will be trying to explore different opportunities and minimize or diversity something

Ex : Nike and Whole Foods

ADVANTAGES

1. Profit margins can be increased due to other businesses

2. Market share can be increased

DISADVANTAGES

1. Risk of failure due to lack of experience in the new market

2. If the business is new it difficult to lower down the prices compared to established firms

REASONS FOR MAJOR

1. Expectations of higher profit

2. To reduce competition

3. Easy and quick ways to expand businesses  easily increase there market in a period of time

4. Enter a international market

5. Asset increase

6. Complay with the law of captail requirements to join with something

TAKEOVERS

When a company buys more than 50% of the shares of another company and becomes its controlling owner . It usually found on public limited companies because there shares open and any on can buy them. When a take over is complete the company that has been bought  loses its identity and becomes apart from the buy company , the buying company is know as the acquire ( bidder and the company that has been bought loses its is know as the target )

WHY DO BUSINESSES STAY SMALL

1. The type of industry the business is operating in some industries it is not buyable for the firms to expand since they will be offering personal services. Example hair dressing, plumber , car repairs etc. if they were to grow to larger  they would find the difficult to offer the close and personal services demand by customers

2. Market size the number of customers will determine the size of the firms  if the number of customers are small the businesses in that industry will remain small

3. Owners objectives some owners prefer to keep there firms small and would like to avoid the stress of a large firm

BUSINESS OBJECTIVES(4)

Measurable targets of how to achieve business aims or the targets  that must be achieved in order to realize the aim of the business. Objective can be seen as the most specific and quantifiable aims designed to assist in the achievement of the goals identified in the mission statement

Objective must state what the organization is tryna to achieve how this can be done when it must be done and how they will know that it has successes

IMPORTANCE OF BUSINESS OBJECTIVES

1. They clarify to everyone what this business is working to achieve

2. They aim in decstion making and chose or strategy

3. they enable checks on progress and corrections actions

4. They provide needs by which performance that can be measured

5. Motivate employees

6. They can be broken down targets for each organization

7. They provide shared holders with a clear idea of the business of which they have invested

8. They facilitate the resolution between the something

Ojectives should be smart

Must be  SPECIFIC

MUST HE MEASURABLE

MUST BE ACHIEVABLE

MUST BE REALISTIC

MUST BE TIME SPECIFIC

SPECIFIC

ojectives should be more presised. Having a bunch of something statements is not very helpful at all. You must make your project tangible by saying how you going do it .

Ex:

MEASURABLE

define your Ojectives using accessible terms . Express it in terms or quantities , cost and dead lines. It refers to the extant to which something can be sometimes the some standard

Ex:

Realistic

Ralvent the objectives should be challenging but it shone also able to achieved by the person using the available resources the objectives should be realistic when compared with the resources of the company and should be expressed in terms realvant to the people who have carry them out

Ex

TIME SEPECIFE

an object should have end points and check points build into  it . They may have a time limit of when the objects the objects should be achieved.. time specific answers the question, when it should it will be done?

Ex by the end of the month or end of year

HIGHERICHY OF OJECTIVES

Where the business wants to go it the future aims and state and sometimes in the project it is

Mission: a formal summary of the aims and values of a company and explain the organization purpose what stands for and why it exists. It’s a statement of the business full aims praise to motivate employees and simulate interest by outside groups . It’s should state things related to the business such as industry, products or services and culture and customer and the odernates like quality, efficiency or pricing and social responsibility

Ex: Facebook is to give people the power to share and make the world more open and connected

Ford company one team, one plan one goal and ford mission statement

TYPES OF OJECTIVES

Stragertic objectives those That are very risky and are likely to influence the overall long term policy

Ex: what new products to develop

Practical Ojectives - fairly retain . Predictable short term decisions for ex what price to charge to a product

Operational Ojectives: decision which are repation , day to day and risk free ex: how long should the tea break be

PURPOSE OF A MISSION STATEMENT

1. A quickly informed groups outside the business what the central aim and what vision are

2. Helps to guide and direct idviidvals employees at work

3. To motivate employees

4. They help to establish in the something on other groups what the business is all about

COOPERATE OBJECTIVES

A detailed plan of step you plan to take in order to achieve statement aim .. mission statements and aims  Compliances..  because they have specific details for operations decisions and they are rarely explained in quainted terms

Aims and mission statements should be turned into objectives that are specific to the business that can be broken down stratic departments.

They provide more detailed about the cost acting or strategy to follow

Include

1. Profit maximization

2. Profit satisfaction

3. Growth

4. Increasing market shares

5. Survival

6. Cooperate social responsibility) CSR)

7. Maximum share holders

PORFIT MAXIZATION

IS THE MAIN AIM FOR Most private firms . It refers to the greatest position difference between total revenue and total sales . Total revenue x total sales

Profit is very important to business because it is used for rewarding investors

Used to for business expansion in the future challenges faced by firms as they persuase Profit maximization

1. Maximum profit will encourage new competitors to enter in the industry and chances for business success will be reduced

2. These Ojectives will be achieved in profit tolero the owner happy but not to maximum profits these Ojectives are persuade by owners small businesses who which to have more liseire time. The business will be satisfied make making a level of profit

CHALLENGES FACED BY FIRMS ( profit maximization)

1. The business wont be having money to grow in the future

2. The business may lack funds to implant social responsibility programs

GROWTH

increasing the operation of the business

Expanding to other regions or countries

Measured by the number of employees and number of products sold

Growth benefits in mangers in terms of higher salery

It helps the business to avoid takeovers

The business benefits for the economic of scale and it becomes more appealing to investors

CHALLENGING

1. Rapid growth can lead to economic of scale EX: financial in economics and management of of scale

2. Increasing market shares ( referred to something in the market) ex :

MAXIMIZING SHARE VALUE

objective to of a public limited companies management will be concerned abt increasing the company shared prices and deviation paid to shareholders but the interest must be considered as first priority

Increasing shareholder value is increased in profit maximization

CHALLENGES FACED BY FIRMS AS THEY PREUSASE

the Ojectives conflict with something of stakeholders

COOPERATE SOICAL ABILITY

refers to a set of policies to demonstrate the commitment of a business to world being of society and others by taking responsibility for the impact of decisions of all stakeholders. Some businesses have objectives which are based on there beliefs of how one should treats the environment should treat the people.

it apples to those businesses that consideres the interests of society by taking responsibility of their decisions and activities on consumers and employees and communities and the environment. Some businesses activities are very damaging to other stakeholders

BEFNEFITS OF SOICAL RESPONSIBLE

1. The business can be given government contacts or tender

2. The business can easily attract highly skilled personnel

3. Business will gain public acceptance and reduce the risk of negative publicity

4. Employees commitment to the same values

5. Customers loyalty

CHALLAGES FACED By FIRMS

1. Conflicts with the profit maximization objectives

2. Time is waste on SOICAL problems

3. The business won’t have enough money for expansion

4. Greater crisism and loss of loyalty if things go wrong

DEPARTMENTAL OBJECTIVES

Idvidivcl OBJECTIVES

Look at audio

OBJECTIVES IN THE PRIVATE SECTOR ANd PUBLIC SECTOR

1. To earn high profits ( all they want profit in the private sector)

2. To maximize wealth of shareholders

3. To fulfill needs and wants of the people

PUBLIC SECTOR OBJECTIVES

1. TO create employment

2. To operate even if no profit is generated

3. To provide certain products such as publicity, trust ,

4. To provide goods and services at affordable prices

OBJECTIVES OF NON PROFIT ORGANIZATIONS

1. Is to provide services to members

2. Provide employment

3. Operating the world fairs of members

4. Eliminate porvety in communities

Conflicting OBJECTIVES

often times 2 or more objectives will crash and we call this conflicting  objectives

COMMON CONFLICTING OBJECTIVES

1. Clashes between key stakeholders ( owners of a company objectives may clash with those of managers or employees. Owner may want the business to minimize cost will employees mind for a pay mind

2. Growth ventures profits ( achieving higher scores in the stock sale probably by cutting will lead to reduction in short term profit

3. Clash between short term and long term objectives ( a business may decide to accept lower cash flow in the short term while it invests in new products plans in the business)

4. Clash between environment and profit ex :

STAKEHOLDERS IN A BUSINESS (5)

Any person or group or organization that there’s and intersect in or affected by the activities of a business .. also can be defined as individuals or groups with an interest in the activities of a business.

Introducing business stakeholders

1. Owners

2. Employees

3. Customer

4. Local community

5. Mangers

6. Suppliers

7. Pressure groups

8. The government

A BUSINESS needs to take into account of needs and interests of its stakeholders in order to operate successfully and ensure long success. Different stakeholders may have different priorities which means that at times it may be difficult for the business to please all stakeholders

Stakeholders can be involved into two

INTERNAL AND EXTERNAL STAKEHOLDER

internal - is some who is directly involved within organizations and is affected by its day to day decisions

1. Owners they provide and take over responsibility of the business

2. They invest in companies by buying shares

RIGHTS OF OWNERS

1. they have the right to profit , right to make decisions ( especially in small firms ) , right to close the business

2. The owners have the right to dividends

3. They should hav access to key financial information

RESPONSIBILITY OF THE ONWERS

1. they run to business and ethical and legally

2. They reinvest or distribute profits

3. They ensure long term success

4. They bought responsibility, they monitor performance and long term growth

EMPLOYEES

They work in the business and carry out tasks assigned to them

RIGHT OF EMPLOYEES

1. must have a right to get fair pay

2. The right to safe working

3. Job security

4. Non discrimination

RESPONSIBILITY

1. They should work effectively

2. They should follow company rules

3. Must respect colleagues and customers

MANGERS

They lead the team and run daily operations

RIGHTS OF MANGERS

1. Right to make a decision within there department brand

RESPONSIBILITY

1. they meet targets , manage the resources

2. They report senior leaders

EXTERNAL STAKEHOLDERS

a person or group outside the business who is affected by or has a interest in its activities and performance

CUSTOMERS

  They take used good and services

RIGHTS OF CUSTOMERS

1. They have the right to serve, good quality products, fair pricing and clear information

RESPONSIBILITY

1. They us products correctly

2. Pay on time

3. Give feedback

SUPPLIERS

they provide goods , materials or services need production

RIGHT IF SUPPLIES

1. Right to be paid on time

2. Far contract

3. For communication

RESPONBITYILY

1. Deliver on time

2. Matain quality

3. Must be reliable

CERDITS

they lend money or provide trade verify to the business

RIGHTS

1. Right to be paid on time, to receive interest if agree

Responsibility

1. they provide funds as agreed assets risk before lending

Local communities

leads near or is affected by the business of operations . They may be employed by the business

RIGHTS

1. They have the right to please the environment. Job , reduce noise and traffic

RESPONSIBILITY

1. They participate in Constantino

2. Give feedback

3. Supports local where it’s possible

GOVERNMENT

It regulates business activities and collect tax and search loans.

RIGHT

1. It’s  right over government to collect tax’s

2. Inspect of compilers

3. Informe regulations

RESPONSIBLITLY

1. to in force laws

2. Support economic stability

3. Provide public services ( education, health care transportation)

Pressure groups

They campaign to influence business behavior especially on social issues

RIGHT

• protesting

• Raise awareness

• Organization campaigns

RESPONSIBILITY

• they act lawfully

• They communicate concerns clearly

• Represents public or ectical fully

COMPETITORS

They offer similar products and services in the same market

RIGHTS

• to compete fairly and legally

• Complete ecticaly as a competition and avoid misleading and copying innovation

BUSINESS IN ITS ACCOUNTABILITY TO ITS STAKEHOLDERS

The business being responsible for its actions and decisions and is willing to explain them those stakeholders affect

WHY DO BUSINESS NEED TO ACCOUNTABILITY

1. Stakeholders have power and influence ( if stakeholders feel ignored or treated unfairly they can harm the business)

2. Shareholders can vote at meetings and sell shares affecting the share price

3. Employees can strike , resign or lower there productivity

4. Customer can stop buying products and damage the brand

5. Pressure group can launch companies that can make bad publicity

6. Government can fine or close business that break laws

7. Accountability Matains trust and reputation ( being open and honest helps build trust )

8. A good reputation attracts skilled works and local customers

9. Its support long term success ( listening to stakeholders helps businesses to avoid conflict and make better decisions it encourages ethical behavior and reduces the risk of breaking laws or damaging the environment

ACCOUNTBILTY TO DIFFERENT STAKEHOLDERS GROUPS

EMPLOYEES

business responsibilities

• the business pay fair wages and offer job security

• The business provides safe place

• It’s support training and development

• They treat all employees equally

DEMONSTRATE ACCOUNTABILITY

• they share updates there meets and emails

• They follow employment laws

• They support unions and employees voice

• They respond to HRD

OWNER

business responsibilities

• they make good use of there investment

• They aim for strong profits and they must be transparent to business preforms

DEMONSTRATE ACCOUNTABILITY

• they publish financial reports and forecasts

• Hold AGMS for questions and voting

• They pay dividends when profits allow

CUSTOMERS

business responsibilities

• they provide on business responsibilities and they business can rely able products

• Offer good customer service

• They charge fair prices

• Advertise honestly

DEMONSTRATE ACCOUNTABILITY

• they respond to complaints and offer refunds

• They is quality control systems

• They provide warranty and clear information

SUPPLIES

business responsibilities

• they place clear and fair orders

• They pay on time

• They build respectful long term relationships

DEMONSTRATE ACCOUNTABILITY

• they owners contracts

• they communicate about delays

• They avoid forcing and fair cuts

LOCAL COMMUNITY

Business responsibilities

• they suppose to reduce pollution, traffic and noise

• Create local jobs

• Supports local course and projects

DEMONSTRATE ACCOUNTABILITY

• they consult the public on expansion plans

• Sponsored local events

• Minimum negative environmental impact

GOVERNMENT

business responsibilities

• follow laws and regulations

• They pay taxes on time

• They report accurate business data

DEMONSTRATE ACCOUNTABILITY

• they coordinate with inspection and orders

• They submit tax returns

• They follow correct procedures when expanding or closing size

PRESSURE GROUPS

business responsibilities

• they respect concerns of ethics of the environment

• They avoid controversial practices

• They meet with group leaders

• They adapt policies if necessary

• They respond to companies or negative publicity

CONFLICTING AIMS OR OBJECTIVES

• Stakeholders groups can have conflicting objectives which can lead to tension and disagreements

• They can arise when stakeholders have different levels of power and influence ex: pressure groups which a strong public supports maybe be able to influence

• business may be might need to buy the compltion demands of the stakeholders group ex: a company might need to invest incostly to meet the. Demand of the local community but this may reduce profitability and unset shareholder

EXAMPLES IF STAKEHOLDERS CONFLICT

• employees and employers ( in 2022 workers at Apple Chinese factor operated fox con against the. Covid -19 regulations

• Unpaid bonuses and poor living arrangements .

• Employees clashed with security forces and video of the rapid spread

• Apple first delay of Apple production and fix con have to provide extra pay to stock holder

PRESSURE GROUP AND GOVERNMENT

• in 2021 environmental groups the government handling of the derivation in the Amazon rainforest

• Organization such as GREEN PEACE and www.f

• The groverment was supported the economy developments but it group and affected other countries . The government argued that it was in something

LOCAL COMMUNITIES AND DELEVOPLEMTS

• in 2018 in India someone states local community protest against the expansion of the smelling plant on the still light copper . Residents claim that the plant cause pollution and health problems

• Protest escalated

HOW STAKEHOLDERS MAY BE AFFECTED CHANGES AND OBJECTIVES

Business objectives can change over time depending on the business situation such as during a resashing after a major or facing plubic pressure.. any changes to a objective will impact stakeholders in different ways

1. employees … if the business changes its objectives to focus on cost cutting employees may face lower wages or job losses if the new aim is growth employees may see more job opportunities, promotion or training

2. Owners … at shift towards maximumtsion maybe resulting in higher dividends and increased shared prices if the business aims to become more sustainable profit might drop in the short term which some share holder may not like

3. Customers… if the forecast is on lower costs product quality or customers services might suffer. If the aim shift to ethical business customers may benefit from better service and feel loyal to the brand

4. Supplies…. If the business wants to reduce spending it may demand lower prices or reduce order which negatively affects suppliers… if the business focuses on ethical sourcing, suppliers who meant fair trade or quality standards will benefit

5. Local communities ….if a business changes its objectives to focus on environmental impact tthe local area may benefit from cleaner operations and more community support if the goal becomes global expanision the business might relocate reducing local investment or jobs

BUSINESS DECISIONS AFRECT STAKEHOLDERS INTACTLY

stakeholders do not all react in the same way as business decision.internal stakeholder are involved in job changing roles , business income or strategy

External stakeholders may feel the impact in the form of prices , supplies , local jobs or reputation…

CHANGING BUSINESSES OBJECTIVES AND STAKEHOLDER REACTIONS