1.5- Entrepreneurs and Leaders
Cards (12)
- Factors that can affect a business in the Food and Drink market:
- Challenges faced by a Café before opening, such as changes in supply and demand
- Steps to start a business:
- Spotting an opportunity
- Obtaining finance
- Setting aims and objectives
- Managing each element of the business
- Inspiring workers to achieve goals
- Steps to grow a business:
- Establishing extra demand
- Obtaining extra finance
- Hiring extra workers
- Implementing a growth plan
- Traits needed for a successful entrepreneur:
- Ability to measure performance effectively
- Resilience to overcome obstacles
- Eye for details
- Strategic thinking
- Passion for the business
- Competitive nature
- Ability to bounce back quickly from failures
- Ways to achieve profit maximisation in the short run:
- Increasing price
- Improving productivity and efficiency
- Firing excess staff
- Cutting costs
- Concept of satisficing:
- Earning enough profits to keep shareholders happy
- Shareholders earn dividends from profits
- Managers may not aim for high profits
- Other business objectives:
- Sales maximisation
- Increased market share
- Cost efficiency
- Employee welfare
- Customer welfare
- Social objectives
- Types of businesses:
- Sole traders (unincorporated)
- Partnerships (unincorporated)
- Limited liability
- Incorporated businesses
- Public Limited Company
- Franchising
- Advantages and disadvantages of franchising:
- Market demand
- Accurate pricing
- Successful business model
- Successful marketing
- Access to finance
- No creative control
- Local area knowledge is wasted
- Reliance on franchisor for support
- Reputation reliance on other franchises
- Not-for-Profit businesses:
- All profit goes to social causes
- Registered Charities
- Social enterprises
- Trade off:
- When two outcomes cannot be achieved simultaneously
- Often limited by time, money, resources, skills, or experience
- Business choices vs Opportunity Cost