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• Sources of Growth


  • Natural Resources
  • Capital
  • Technological Process
• Growth is not an automatic bightright for an economy. For an economy to grow, it has to create the right conditions for growth.
• The better the quantity and the quality of the resources the more potential it has to grow.
• Rate of Savings


  To have more tomorrow you often have to have less today. This is true with savings as well. To provide funds for investment there's a need to be at good level of savings. This should in turn mean more growth in the future.
• Technology makes it possible to produce more from the same quantity of resources(or factors of production).
• Demand-side policies


  Policies that help to generate more demand
• Supply side policies


  Policies that aim to boost the potential for the economy to grow
• Demand-side policies


  • Cutting Tax rates to boost people's disposable income
  • Increasing the level government expenditure
  • Cutting interest rates to encourage more borrowing and spending
• Supply side policies


  • Cutting tax rates
  • Cutting benefits
  • Promoting education and training
  • Promoting research and development
  • Promoting mobility
• Resourceful


  A social entrepreneurial quality which utilizes not only the financial side of the business but the human and political resources as well
• Economic Growth


  This occurs whenever people take resources and rearrange them in ways that are more valuable
• Economics


  A social science which studies how individuals, firms, governments and organizations make choices.; and how these choices determine the way wealth is produced and distributed
• Strategic


  A social entrepreneurial quality that improve, create, and invent approaches to social value
• Business Cycle


  It depicts fluctuation in economic growth
• Environmental Scanning


  The gathering of large amount of information to measure and study the changes in the environment
• External scanning


  The acquisition, analysis and use of information about events, trends and relationships in an organization's external environment, the future knowledge of which would assist management in planning the organization's future course action
• The Role Of External Analysis in Strategic Planning (External Analysis)


  • Scanning
  • Monitoring
  • Forecasting
  • Assessing
• The Role Of External Analysis in Strategic Planning(Internal Analysis)


  • Vision
  • Mission
  • Strengths
  • Weaknesses
• WAYS OF SCANNING THE BUSINESS ENVIRONMENT

  • Undirected viewing
  • Conditioned viewing
  • Enacting
  • Searching
• BENEFITS OF ENVIRONMENTAL SCANNNG

  • The business can unveil many issues that affect the organization's missions and goals, which include the profit ratios and market expectations
  • Organizations scan the environment in order to understand the eternal forces of change so that they may develop effective responses which secure or improve their position in the future
  • Scanning is done in order to avoid surprises, identity threats and opportunities, gain competitive advantage, and improve long- term and short-term planning, hence reduced uncertainty
• IMPORTANCE OF ENVIRONMENTAL SCANNING

  • It helps an organization capitalize on early opportunities rather than lose these to competitors
  • It provides an early signal of impending problems, which can be defused if recognized well in advance
  • It sensitizes an organization to the changing needs and wishes of its customers
  • It provides a base of objective qualitative information about the environment that strategists can utilize
  • It provides intellectual stimulation to strategists in their decision making
  • It improves the image of the organization to the public by showing that it is sensitive to its environment and responsible to it
  • It is a means of continuing broad-based education for executives, especially for strategy developers
• 7 SOURCES OF BUSINESS IDEA

  • Examine your own skill set for business ideas
  • Keep up with current events and be ready to take advantage of business opportunities
  • Invent a new product or service
  • Add value to an existing product
  • Investigate other markets
  • Improve an existing product or service
  • Get on the bandwagon
• Business Plan


  • A process that enables an individual and more importantly a team, to come together and commit to a business adventure of significant personal and professional risk
  • A process that evaluates the opportunity, quantifies the resources required and lays out a road map for implementation
  • A document used to detail plans for a start-up or existing business
• THE IMPORTANCE OF A BUSINESS PLAN


  • It forces you to analyze all facets of your business - good and bad
  • It sets financial goals and guidelines
  • It establishes operating goals, sets priorities and helps you develop strategies
  • It is absolutely necessary if you are going to persuade investors and lenders to back your business
• Components of a Business Plan

  Executive Summary
• Capital

  more capital generally means more production, and more production means more growth. To get capital, countries have to invest and so the level of investment may be a big determinant of future growth. It is no good investing in out of date equipment.
• Natural Resources

  if an economy has a plentiful supply of natural resources, it may

  help to expand. However, natural resources on their own are not enough. They’re also have to be skilled people to exploit the opportunities.
• Technological Process

  this is perhaps the most widely accepted(and easiest to understand) source of economic growth. This is because technology makes it possible to produce more from the same quantity of resources(or factors of production).
• Boosting Growth

  
  

  Government like economic growth. It makes the people in the country better off and if they are better off they are hopefully happier.
• Environmental Scanning - the gathering of large amount of information

  to measure and study the changes in the environment.
• Undirected Viewing - takes place when the organization perceives the environment to be unanalyzable and so does not intrude into the environment to understand it.
• Conditioned Viewing - occurs when the organization perceives the environment to be analyzable but is passive about gathering information and influencing the environment.
• Enacting - takes place when the organization perceives the environment to be unanalyzable but then proceeds to intrude actively into the environment in order to influence events and outcomes.
• Searching - takes place when an organization perceives the environment to be analyzable and it actively intrudes into the environment to collect an accurate set of facts about the environment.