forms of businesses Flashcards
social enterprise
a business entity driven by a primary mission to address social or environmental issues. It seeks financial sustainability through the sale of goods or services while prioritising positive impact, often reinvesting profits back into the mission
adv of being social enterprise
kay distinctive capability-reputation
porter describe it as differentiation
strong brand image as customers see high added value
increased prices/PED is inelastic
employee more motivated as want to work for business driven by clear social objectives
competitive advantage
added value
increase market share
increase profit margins
dis of being a social enterprise
having a social objective can be a competitive advantage but is fairly easy to copy so if successful other firms will do similar
being a social enterprise likely means higher cost of production
customers not always prepared to pay a premium for socially responsible products
balancing social and financial objectives can be challenging (trade off)
need to balance the needs of many stakeholders including employees, local community that they serve and investors
on balance… (relate to MOPS)
lifestyle business definition
small enterprise primarily designed to support and enhance the owners desired lifestyle
prioritises personal interests, flexibility, and work life balance over rapid growth, often focusing on suitable, enjoyable ventures
e.g. tattoo artist shows there interest in art
adv of lifestyle businesses
better work/life balance
autonomy and control over decision making
flexibility for the owner in terms of working hours and locations
can follow hobby or passion
lower stress levels for the owner/doing something they enjoy
dis of lifestyle businesses
typically small scale and limited potential for growth
business is dependent on the owner as it is often tied to their skills or personality
may not be able to compete with larger businesses
online business definition
business operates primarily on internet
using digital platforms to sell products or services
includes e-commerce, digital marketing, online transactions
enabling business to gain global reach and accessibility for customers around the world
adv of online retailing
dis of online retailing
