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BUSINESS AND MANAGEMENT

BUSINESS AND MANAGEMENT. MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT. Starting a Business. Entrepreneur The person who takes the risk to manage, plan and organize the factors of production There are several factors to consider when starting a business Idea Finance Workers

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BUSINESS AND MANAGEMENT

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  1. BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

  2. Starting a Business • Entrepreneur • The person who takes the risk to manage, plan and organize the factors of production • There are several factors to consider when starting a business • Idea • Finance • Workers • Capital equipment • Suppliers • Customers • Marketing • Legal • Canadian Business Pod Cast

  3. Reasons for Setting up a Business • Growth • Capital growth, in areas such as real estate, can greatly increase your net worth • Donald Trump • Earnings • “You can never get rich, while you work for someone else.” • Businesses returns can far outweigh salary • Challenge • Success boosts self-esteem and achievement • Why Warren Buffett continues to work at age 86

  4. Continued…. • Autonomy • Independence, freedom and choice are the characteristics of a business owner • Security • Employees can be fired or made redundant; entrepreneurs can’t fire themselves • Hobbies • Successful entrepreneurs have a passion for what they do • J.K. Rowling or Jamie Oliver

  5. Identifying Market Opportunities • Finding new or unsatisfied consumer needs by: • Identifying a gap in the market • Niche markets • Innovative ideas • Have good market and product knowledge • Apple’s Mac Book Air • Further develop personal skills • Russian billionaire Roman Abramovich’s love for soccer led him to by EPL’s Chelsea FC

  6. Possible Problems • Statistically 40% of new businesses fail in their first year • Mainly due to: • Lack of financial capital • Cash flow problems • Marketing issues • Unestablished consumer base • People management issues • Legalities • Production problems • High cost of production • Poor location • External influences

  7. Formative Case Study - Reload Reload Juice and Salad Bar is a small New Zealand fast-food chain founded in 2003. It aimed to provide healthier options than the standard fast food fare. In 2007, it announced plans for expansion to Europe, starting with a store in Glasgow, Scotland. Required: Identify some reasons why a financial institution may not be willing to fund this type of expansion. What problems might Reload encounter in trying to build a customer base in Scotland?

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