Save
BUSINESS AS LEVEL
1.1 ENTERPRISE
Save
Share
Learn
Content
Leaderboard
Learn
Created by
lmy
Visit profile
Cards (20)
Enterprise
The purpose of
business
activity
Factors
of
production
needed for business activity
Land
Labour
Capital
Enterprise
Adding value
The difference between the cost of
purchasing raw materials
and the price the
finished goods
are sold for
Economic activity
Tries to provide for as many of our
wants
as possible, but we are still left wanting
more
Opportunity cost
The
best alternative
that we forgo, or
give up
, when we make a choice or a decision
Dynamic business environment
Keeps on changing due to factors like change in
government policies
, change in
taste
and choice of the consumer, change in technology
Reasons why
businesses
succeed
or
fail
Good imagination that attract people
(
Innovation
) or value added goods
Tight financial control
Highly
committed
and
motivated employees
&
directors
An efficient production system
Lack
of
market research
Lack
of
working capital
Lack
of
management skill
Lack creativity
Bad location
Legal changes
Technology changes
Too many competitors
Poor services
Low quality product
Lack
of
record keeping
Local businesses
Operate in a small part of the country, objectives do not include
expansion
and do not attempt to obtain customers across the whole
country
National businesses
Have branches or
operations
across most of the country, objectives do not include establishing operations in other
countries
International
/
Multinational businesses
Operate in more than just one
country
Entrepreneur
Someone who takes the
financial
risk of starting and managing a new
venture
Intrapreneur
A
business
employee
who
takes
direct
responsibility
for
turning
an
idea
into a
profitable
new
product
or
business
venture
Qualities an entrepreneur is likely to need for success
Innovation
(creative)
Commitment
and
self-motivation
Multi-skilled
Leadership
skills
Self-confidence
and an
ability
to
"
bounce back
"
Risk
taking
Entrepreneur
Takes the
risk
,
rewards
go to the entrepreneur
Intrapreneur
Risks
taken by the business,
rewards
go to the business
Major challenges faced by
entrepreneurs
Lack of a
business opportunity
Obtaining
sufficient
(
financing
)
Cost
of
good locations
Competition
Lack of a
customer base
Role
of
business
enterprise
in the development of a
business
and a
country
Employment creation
Economic growth
Business survival
and
growth
Innovation
and
technology change
Export
Personal development
Increased
social cohesion
Business
plan
A
written document
that
describes
a
business
,
its
objectives,
its
strategies,
the
market
it
is
in
and its financial
forecasts
Key
elements
of a
business
plan
Executive summary
Description
of the
business opportunity
Marketing and sales strategy
Management team
and
personnel
Operations
Financial forecasts
factors
that
affect
business
in
dynamic
business
environment
political
&
legal
issues -
gov’
implement
new
laws
and
business
needs to
follow
the
rules
economic
issues -
economic
change
and will
influence
the
income
of
consumer
thus
demand
will
change
too
social
issues -
increase
in a
size
of a
population
that
affect
demand
and the type of product people buy
technology
issues -
changes
in
technology
and the speed of internet which will make it
easier
to
find
supplier