CHP 7-10

• Aim


  An overall general goal an enterprise want to achieve in the long term
• Objectives

  An specific target an enterprise want to achieve in the short term
• Growth

  the increase in size of an enterprise through internal / external expansion
• Legal compliance

  The process to make sure that an enterprise follows relevant laws, rules and regulations
• Profit maximisation


  To make the gap between total revenue and total cost as great as possible
• Sales revenue maximisation

  To maximise the revenue received from sales rather from its profit
• Satisficing


  Where an enterprise aims for adequate level of profit rather than profit maiximisation
• Social responsibility

  The idea that an enterprise has a responsibility to a wider society and environment
• Objectives of an enterprise :

  1.Ethical : not-for-profit, has social responsibility

  2. Legal compliance : follow relevant rules and regulations

  3. Profit : profit maximisation

  4. Sales revenue : sales revenue maximisation

  5. Growth : expansion through internal ( increasing sales ), external ( taking over other enterprises )

  6. Survival : to make its own customers

  7. Cash flow : positive cash flow essential to solvency of enterprise
• Action plan

  A plan that outlines the action required to achieve particular objectives and aims which provide a ways of monitor progress
• Business plan

  A document that summarizes the main objectives and aims of an enterprise and how they are to be achieved
• Importance of action plans :

  • Outlines various actions that need to be taken
  • Monitor progress, handling project effectively
  • Creates motivation
• Purpose and importance of a business plan :

  • Give a clear idea of its direction to its stakeholders
  • Outline how is it going to operate
  • Anticipate potential problems to minimise the risk of something going wrong
• Marketing

  communication of imformation, about the enterprise and its products, to its potential and existing customers
• Benefits of marketing

  • Increasing the awareness of the enterprise and its product
  • Establish and maintaining brand loyalty
  • Increasing sales, market share or profit
• Brand

  A name or image that clearly distinguish one product from another
• Branding

  The strategy of differentiating the products of one enterprise from those of others through emphasisng an identifiable image
• Brand loyalty

  The degree of which customers buy one product from a particular brand in preference to another brand
• Marketing strategy

  A long-term plan devised in order to achieve particular marketing objectives
• Marketing from perspective of customers

  • Greater knowledge of enterprise or products
  • The ability to make more informed decisions
• Primary research

  First hand research and involves asking people questions about particular products
• Market Research

  The collection and analysis of imformations that relates to the consumption of goods or services
• Quantitative research

  Gaining information that is capable of being analysed in terms of hard factual data
• Qualitive research

  Gaining imformation that is of more softer, more subjective nature
• Secondary research

  Second-hand research, gaining information by making effective use of information that already exist
• Effectiveness of various methods of market research for different enterprises will depend on their :

  • Cost
  • Availability
  • Suitability for the enterprise
  • Suitability for reaching potential target market
• Brand loyalty

  1.Quality product and services

  • Consistency : meet or exceed customers expectation
  • Innovation : stay ahead of competitors

  2. Customer Experience

  • addresing concerns effectively
  • Personalization : understand and anticipating customers need

  3. Engagement and communication

  • Social media : responding to comments and messages
  • Feedback : Encourage and act on

  4. Loyalty programs

  • Rewards : reward repeat customers discount, freebies or exclusive offers

  5. Brand value

  • Communicating brand value and story authentically, to create an emotional connection
• Mass media

  A various of technologies that are used to reach an audience