SL Business Unit 1

Refers to both goods and services

physical products - clothes, books, food

Intangible products - transport, education, healthcare

People/organization who purchases a product

people that use products

products sold to the general public - rather than to other businesses

products bought by businesses to produce other goods/services

For-profit social enterprises that are owned run by their members - employees or customers.

There is a legal difference between the owners of the the business and the business. Owners will be protected by limited liability,

Private sector, not-for-profit social enterprises that operate for the benefit of others rather than profit.

Private sector business entity owned by 2-20 people.

business owned by shareholders with limited liability - shares cannot be bought through the stock exchange

limited liability company who’s shares are on sale to the general public on the stock exchange.

revenue generating business with social objectives at its core - can be for or not-for-profit but all profits are reinvested rather than going to shareholders

Measure and control, motivate, direct

Grow, Profit, Protect shareholder value, ethical objectives

Actions organizations that are considered to be morally correct employ

Pro

Improves corporate image

Increased customer loyalty

cost cutting

Improves staff morale and motivation

Cons

Compliance costs

Lower profits

Stakeholder conflict

Subjective nature of business ethics

Medium-long term plan of action to achieve strategic objectives - Market standing, image/reputation, market share

Short term plan of action to achieve tactical objectives - survival, sales revenue maximixation

Outlines an organization’s aspirations for the distant future - focused for long term, allow people to see what could be

simple declaration of the underlying purpose of an organization’s existence and core values - updated more frequently, outline values

consideration to ethical and environmental practise relation to business activity

1. Polices and practices need regular revues due to evolving expectations

2. Provides firms with a competitive advantage and long-term sustainability

situational tool used to access the internal strengths and weaknesses and the external opportunities and threats of a business

enables a business to gain max benefit from a favourable external situaition

strength meets an external threat (risk) - business needs to defend itself

favourable external factor but internal weakness. Business needs to adjust policies and practices.

Max threat. Survival policies are aimed to minimize any effect.

Analytical tool to help managers choose and devise product and market growth strategies

Business chooses to focus on selling existing products in existing markets

Selling new products in existing markets

Selling existing products in new markets

Selling new products in new markets

less risky - products are in the same industry

growth by selling completely new products in untapped markets

A formal report detailing the key aspects of a business idea or proposition and how the organization sets out to achieve this