Aecon last quarter

• 8 FUNDAMENTAL PRINCIPLES OF BUSINESS YOU NEED TO KNOW

  ·       HAVE A QUALITY PRODUCT

  ·       KNOW YOUR INDUSTRY AND YOUR COMPETITORS

  ·       PROMOTE WHAT YOU HAVE

  ·       BUILD A GREAT STAFF

  ·       UNDERSTAND ORGANIZATIONAL STRUCTURE AND DESIGN

  ·       USE CAPITAL AND CASH FLOW WISELY

  ·       OBEY RULES

  ·       RESPECT YOUR CUSTOMERS
• TOOLS AND TECHNIQUES IN CREATING A BUSINESS

  ·       THE SWOT ANALYSIS

  ·       TOWS ANALYSIS

  ·       INDUSTRY ANALYSIS

  ·       ENVIRONMENTAL ANALYSIS
• SWOT ANALYSIS

  ·       Was created in the 1960’s

  ·       Edmund P. Learned, Roland C. Christensen, Kenneth Andrews, and William D. Book in their book, Business Policy, Text and Cases (Irwin 1969)

  ·       SWOT stands for strengths, Weaknesses, opportunities, and Threats.
• SWOT analysis is a framework for identifying and analyzing the internal and external factors that can have an impact on the viability of a project, product, place or person. 

  -Albert Humphrey
• Strengths - internal attributes and resources that support a successful outcome
• Weaknesses - internal attributes resources that work against a successful outcome
• Opportunities - external factors the project can capitalize on or use to its advantage
• Threats - external factors that could jeopardize the project.
• TOWS ANALYSIS

  ·       It is a tool which is used to generate, compare and select strategies.

  ·       TOWS stands for THREATS, OPPORTUNITIES, WEAKNESSES, AND STRENGTHS
• Strengths-Opportunities

  Use your internal strengths to take advantage of opportunities.
• Strengths-Threats.

  Use your strengths to minimize threats
• Weaknesses-Opportunities.

  Improve weaknesses by taking advantage of opportunities
• Weaknesses-Threats. 

  Work to eliminate weaknesses to avoid threats.
• INDUSTRY ANALYSIS

  ·       COMPETITORS

  ·       CUSTOMERS

  ·       SUPPLIERS

  ·       SUBSTITUTES
• Industry is a group of businesses that provide a particular product or services.
• ·       COMPETITORS

  -Who are the major businesses in the industry?

  -Are there locations close to your proposed business?

  -Have they been long existing or still new entrants?

  -It is very important that you know your competitors and be ready for them

  -Your aim is to win their customers, convince them to buy from you instead, and remain as loyal customers.
• ·       CUSTOMERS

  -Who will you sell your product to?

  -What income groups?

  -What age brackets

  -gender

  -What type of people will you cater to, based on their preferences, lifestyles, and buying habits?
• ·       SUPPLIERS

  -A business may need one or more suppliers as resources of their raw materials, intermediate products, or even the finished goods one intends to resell.
• SOURCES:

  Manufacturers, distributers, imports
• ·       SUBSTITUTES

  -these are goods that can be used in place of another
• 1.       ECONOMIC FORCES

  ·       income of the people

  ·       target market

  ·       economic condition as inflation, recession, prosperity, demand, and supply in the market
• 2.     PHYSICAL ENVIRONMENT

  ·       population size

  ·       -geography of the place

  ·       -climate

  ·       -today’s global warming situation(prone to flood or earthquake)
• 3..       POLITICAL FACTORS

  ·       type of government
• 4.       CULTURES AND LIFESTYLES

  ·       practices like fiestas, celebration of Christmas season

  ·       -trends
• 5.      COMPETITION

  ·       market structure
• INDUSTRY

  ·       It is a group of businesses that provide a particular product or services
• . agribusiness

  ·       -An industry engaged in the producing operations of a farm, the manufacture and distribution of farm equipment and supplies, and the processing, storage, and distribution of farm commodities
• Manufacturing industry 

  ·       -refers to those industries which involve in the manufacturing and processing of items and indulge in either creation of new commodities or in value addition.
• retail and services 

  ·       -Retail businesses sell finished goods to consumers in exchange for money.

  ·       -Retail businesses can include grocery, drug, department and convenient stores.

  ·       -Service related businesses such as beauty salons and rental places are also considered retail businesses.
• . international trade (exports and imports)

  ·       International Trade refers to the exchange of products and services from one country to another. In other words, imports and exports
• Tourism industry

  ·       -In its broadest sense, the tourism industry is the total of all businesses that directly provide goods or services to facilitate business, pleasure and leisure activities away from the home environment

  ·       -The hospitality industry is a broad category of fields within the service industry that includes lodging, event planning, theme park, transportation, cruise line, travelling and additional fields within the tourism industry
• Socioeconomic Impact Study

  1. consumer (new products and services)

  b. suppliers –investors (capital, income)

  c. government(tax revenues, poverty alleviation , basic services)

  d. households (standard of living, employment)

  e. international trade (exports and imports of goods and services)