UNIT 1 REVISION

Starting a business

KEY POINTS:

• Enterprise
• Enterprise skills
• Entreprenurs

RISK&PROFIT

• lack of finance
• poor infrastructure
• skills shortages
• often high profits to be made from a business idea that competitors are afraid to exploit.

OPPORTUNITY COST = THE NEXT BEST ALTERNATIVE FORGONE

Sources of business idea

4 major resources:

• spotting trends
• niticing something that is missing from the market
• copying ideas
• taking a scientific approach

Identify of a PRODUCT & MARKET NICHE

FRANCHISING

- The the business(the franchisor) gives the right to supply its product or service to another business(the franchisee)

-It is important to know the benefits and drawbacks to be the franchisee/franchisor

PROTECTING A BUSINESS IDEA

• Cory right
• Patents
• Trademarks

Transforming resources into goods and services

Inputs = factors of production:

• Land
• Labour
• Capital
• Enterprise

Inproving effeciency:

• using recyclale/renewable resources
• greater traning of the workforce
• imcreasing the level of capital equipments
• improvements in the entreprenuerial skills

PRODUCTION

-the process whereby resources are converted into a form that is inthended to satisfy the requirements of potential customers.

TRANSFORMATIO PRCESS: INPUTS TO OUTPUTS

ADDING VALUE

-The process of increasing the worth od resource by modifying them

VALUE ADDED

-Sales revenue minus the cost of bought-in materials, components and services.

Chapter 8 Mindmap

Barker Ltd - Recommendation

Overall the farm seems to be in a weak state. Two main options: to sell and moving into the crisp market. There are many factors that success depends on such as the finance will be raised favoringly whether or not, maybe other family members who agree to sell the farm refuse to put money into the business. The reliability of Romily's business plan is also an important factor, if the market research she took was not accurate, it may lead the business into a very risky and dangerous situation, and the changes in customers' tastes in the future are difficult to predict.

My recommendation is that the movement into the crisp production is advisable. As I mentioned the above, the advantages of the movement is more virtual than the disadvantages. There's a vary weak financial position, so I suggest that not only Romily, but other family members should put their own money as the finance support the business of crisp production. Depite the probability of success of moving to crisp production is 70% (shows from the dicision tree), however, this is a long-term plan and it still seems to be risky if there's lack of finance, shortage of cash and economic recession. Aslo, the alternaive cost -- selling the farm by 1.4 million pounds is quite attractive, that means some family members will strongly disagree the movement into crisp production , and they may casuse troubles which make the dicision to take too long time. Anyway, moving into crisp production seems more likely to be worthwhile if Romily is able manage the business more efficiently, and they can keep the Barker brand name which can motivate the whole members in the business.

Chapter7 Preliminary questions

Q1 Analyse why Tesco has chosen to focus on small, local stores in Japan and the USA rather than on larger stores.

• In Japan, this involved the takeover of an existing chain of japanese stores,Tesco introduced brand-new stores with small-scale. The advantage is this is a way to minimaise its cost, also, the return on capital employed should be high because the high profit but low capital employed, therefore there are less risks. However, it is difficult for small stores to bring a huge sales revenue and it is hard to attract customers.

Q2 Analyse internal factors that might have influenced Tesco's marketing objectives.

• The key internal factor that might have influenced Tesco's marketing objective might be the corporative objective which is sales growth for the company as a whole. The marketing department must ensure that its marketing objectives are consistent with the corporate objective of the business. Also, the popularity of the products is an important factor. To Increase the sales growth, Tesco set objective which is to be strong in non-food as in food.

Q3 Examine factors that might cause Tesco to change its marketing objectives suddenly, such as its decision to enter the US market.

• The key factor that make Tesco to change its marketing objectives suddenly is it haven't a achieve the targets for 2007/2008. In Asia, the number of stores was short of target by 86 and ub Europe, the number of stores was 69 below the target. Therefore, Tesco opened 53 stores suddenly in the US to reduce the shor of the target. Aslo, thouse additional stores will improve the efficiency of its operations. That means bigger sales growth and increase Tesco's popularity as well as goodwill.

Mindmap: Capter 7 Understanding marketing objectives

Additions:

• Marketing objectives are the specifix, focused targets of the marketing fuction within and organisation.
  
  
• Marketing pbjectives are not static. They chanes as a business develops. Ther also change in response to both interal and external circumstancs.

Rotating baby stroller with eco-creds

Priced at USD 900, the Orbit Baby Infant System includes infant car seat, base and rotating stroller that work together in modular fashion. The foldable stroller—priced separately at USD 485—features 360 degree rotation that allows the child to face forward, back or even sideways. An exclusive twist-and-lift mechanism permits one-handed folding, while a patent-pending, removable Cargo Pod makes getting to all of baby's stuff a breeze. The stroller is compatible not just with Orbit Baby's infant car seat, but also with its bassinet, toddler car seat and toddler stroller seat. Perhaps best of all, Orbit Baby uses micro-fiber upholstery fabric certified by the International Oeko-Tex Association, which limits more than 100 potentially harmful substances and chemicals. Its flame retardants, for example, meet all applicable standards without the use of many of the commonly used—and potentially harmful—chemicals. Its rain shields, similarly, are PVC-free, and its Green Edition foot muffs and car seat upholsterers—coming soon, and made of organic cotton and wool—will feature what the company says is the industry’s first fabric to be naturally flame retardant without any harsh chemicals. Orbit Baby is also working on a product recycling program for when families outgrow its products.

It is a convenient and the design is special which as I said above .So the stroller has all the function that people usually need .It considered all the situation for the babies .And the material for make the stroller is organic cotton and wool which are really comfortable for babies.But there are too many competitors in the market so it must has it own USP so i think features 360 degree rotation that allows the child to face forward, back or even sideways is quite well desgined.And it is very easy to use.

Therefore I think it is a good business idea .I think the products for babies are quite important this one looks really good .

Dragons' Den Foldio pitch

Christian Lane, the youngest ever entrepreneur in the Den battles it out with the infamous Dragons. Actually, I think Theo was right to investment.

I'm interested the folder he designed, if i see the Foldio in the stationary shop, I think i will buy it. Chris Lane required 80,000 pounds, and provide 50% shares to the investor,this is a very satisfied and attractive condition offered of investors. Also, Christiane expect that the turnover will be 450,000, but I can't imagine that the market potential for this product would be significant enough to create a million pounds business opportunity. The expected profit is 225,000 pounds, which is a lot and the cost per folder is very cheap, only 50p, that means, the probability of making huge profit is big! Christian has approached 4 manufactures and the most competitive one is in Mainland China, he knows how to reduce the cost and deal with foreigners, this is very good to his business and this is aslo his predominace to gain the finance from dragons dem.

I found the video to show where he is NOW!

Also, there's his company's website you can visit.

However, he looks very very very successful now. ^^