1.1 Intro to BM Flashcards
Entrepreneur
Someone who:
* Takes the financial risk
* Starting and managing a new company
* in return for all profit
Intrapreneur
Someone who:
* Acting as an entrepreneur but as an employee within a large business organization
Business Plan
Document that sets out the business idea its goals and objectives and other details of how the business will operate
Elements of the business Plan
- Executive Summary
- Business opportunity
- Marketing and Sales
- Why will consumers buy the product
- Human resources
- Details of the management team
- Operations Management
- Location of shop/factory
- Finance
- Where capital will come from
The main business functions and their role
HR
* Manage personnel - recruitment, training, contracts, motivation
Opereations Management
* Purchase of resources, quality management and production efficiency
Finance
* Managing the organisations money
Marketing
* Identify and satisfy wants and needs of consumers
Primary, Secondary, tertiary and quaternary sectors
Primary:
* Extraction, harvesting and conversion of natural resources for use by firms
Secondary:
* Manufacture and production of products from raw materials
Tertiary:
* Service industry
Quaternary:
* Business involved in intellectual, knowledge-based activities regarding information
* E.g Drug research
The impact of sectoral change on business activity
Sectoral Change
* A shift in the relative share of GDP and employment in each sector of the economy
Industrialization
* Movement from Primary to Secondary sector
Deindustrialization
* Movement from Secondary to Tertiary sector
Sole Trader
- A Business in which one person provides the permanent finance
- Full control
Partnership
A business formed by two or more people to carry on a business together with shared capital investment and, usually, shared responsibilities.
