Unit 1 Chapter 2 Flashcards
Internal Business Environment and Planning (37 cards)
internal environment
factors within a business that a business has control over
internal environment factors (9)
- resources
- locations
- sources of finance
- existing vs establishing
- support services
- business types
- business models
- SWOT analysis
- CSR
external environment
surrounding factors that can impact a business, which it
has minimal control over. macro and operating
factors.
operating factors (4)
- customer needs and expectations
- special interest groups
- competitor’s behaviour
- suppliers and the supply chain
macro factors (6)
- CSR considerations
- global considerations
- technological considerations
- economic conditions
- legal and government regulations
- societal attitudes and behaviour
order of environments
internal) operating) macro)
types of businesses (6)
sole trader, partnership, private limited (Pty Ltd), public listed (Ltd), social enterprise, government business enterprise (GBE)
sole trader
- 1 individual owner
- unincorporated
- unlimited liability
- profit: owner
partnership
- 2-20 owners
- unincorporated
- unlimited liability
- profit: partners
private limited company (Pty Ltd)
- up to 50 shareholders
- only specific people
- incorporated
- limited liability
- shares to private
public listed company (Ltd)
- unlimited shareholders
- any people
- incorporated
- limited liability
- shares to public
social enterprise
- aims to fulfil a social or environmental need
- NOT a business structure
- must give 50% profit
- profit: reinvested or donated
government business enterprise (GBE)
- owned and operated by the government
- caters for social needs e.g. transport, housing, communication
- profit: reinvested or to government
unincorporated vs incorporated
- business = owner, same legal entity
- business ≠ owners, different legal entity
unlimited vs limited liability
- owner is responsible for debt
- shareholders only liable to extent of original investment
types of business models (6)
online, direct-to-consumer, bricks-and-mortar, franchise, importer, exporter
online business
operates online
e.g. eBay
direct-to-consumer business
products sold directly to customers with no intermediaries
e.g. apple store
bricks-and-mortar business
has a physical store presence
e.g. woolworths
franchise
grants another person the right to operate under its name and sell its goods and services
e.g. McDonalds
importer
purchases goods and services from overseas and sells them in its home country
e.g. Toyota
exporter
produces goods and services in its home country and sells them to overseas buyers
e.g. iron ore
purchasing an existing business
obtain: premises, equipment, stock/goods, employees, customer accounts, goodwill
establishing a new business
consider: location, business name registration, suppliers, staff employment
