Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
42 Cards in this Set
- Front
- Back
|
Is a scheme aimed at improving the living standards of the nation's citizenry. |
Economic development |
|
|
Elements necessary to achieve economic development goals |
1. Human resources 2. Natural resources 3. Capital formation 4. Technology |
|
|
Human resources |
Labor supply Education Discipline Motivation |
|
|
Natural resources |
Land Minerals Fuel Climate |
|
|
Capital formation |
Machines Factories Roads |
|
|
Technology |
Science Engineering Management Entrepreneurship |
|
|
Refers to the economic activity of a person who starts,manages & assumes the risks of a business enterprise |
Entrepreneurship |
|
|
The person who undertakes entrepreneural activities |
Entrepreneur |
|
|
What are the entrepreneur's tasks? |
1.products & services for customers & producers 2.employment 3.taxes 4.demand for suppliers' products & services 5.training facilities for future entrepreneurs |
|
|
External Sources of Business Opportunities |
Sociocultural factors Technological advancements Economic growth/decline Politics & legal factors New discovery or new knowledge Futuristic/unexpected opportunities Industry trends Consumer preferences Competitors Social problems/irritants in the market place Physical location of entrepreneur |
|
|
Internal Sources of Business Opportunities |
Talents,hobbies,skills,expertise or academic background Financial capacity Processes/operational capacity Leadership & people management skills Entrepreneural attitude/character Vision & strategy |
|
|
Innovation could be any of the ff: |
1. New product2. New process of production3. Substitution of cheaper material in an altered product4. Reorganization of product5. Improvement in instruments or methods of doing innovation |
|
|
Refers to the actual introduction of a new product or process |
Innovation |
|
|
Refers to the discovery or devising of new product |
Invention |
|
|
Refers to the process by which the ideas & principles generated from the stage of innovation are embodied in concrete products & techniques |
Development |
|
|
is a document that helps the small business owner determine what resources are needed to achieve the objectives of the firm, and provides a standard against which to evaluate results |
Business Plan |
|
|
Purposes of Business Plan |
1. to serve as management's guide during the lifetime of the business and 2. to fulfill requirement for securing lenders and inventors |
|
|
In the course of writing the business plan, the__ is afforded sufficient time to consider all factors relevant to operating the business. |
small business operator |
|
|
Parts of a Business Plan |
1. Title page & contents 2. The Executive Summary 3. Description of the Business 4. Description of the Product or Service |
|
|
is a portion of the business plan that summarizes the plan and states the objectives of the business |
The Executive Summary |
|
|
If the SBO is intending to borrow money or is seeking investors,the ff. must be indicated: |
1. The capital needs of the business 2. How the money will be used 3. What benefits will be derived by the business from the loan/investment 4. In case of loan,how it will be repaid w/ interest,in case of outside investment,how profits will be generated |
|
|
This particular portion of the business plan is very useful to the SBO,as well as prospective investors & lenders. This is divided into 2 parts: |
Description of the Business 1. A short explanation of the industry 2. A description of the business |
|
|
The product must described clearly in the plan. To achieve this,the ff. must be presented: |
1. The important features of the product or services 2. Detailed description of how the product is used 3. What makes the product or sevices different from other available in the market |
|
|
Refers to what the SBO plans to do to achieve the market objective of the firm |
Market Strategy |
|
|
To determine the firm's market share,the ff. may be used |
1. Determine the # of prospects in the market 2. " the # of times the product/service is purchased by the target market 3. " the percentage of the potential purchase that the firm can attain |
|
|
Refers to how the firm differentiates its product or service from those of the competitors & serving a niche |
Positioning strategy |
|
|
Questions to be considered in adapting a positioning strategy |
1. What does the customer really want to buy from the firm? 2. How is the product/service different from the competitors? 3. What makes the product/service unique? |
|
|
Factors to consider in determining the right price |
1. The customer's perception of value in the firm's kind of business 2. The cost involved such as overhead,storage,financing, production,& distribution 3. The profit objectives of the firm |
|
|
This method covers all cost,variable and fixed,plus extra icrement to deliver profit |
Cost plus pricing |
|
|
Method of pricing where the firm sets prices based on buyer desires |
Demand pricing |
|
|
Orientect pricing in which the firm sets prices by adding per-unit merchandise cost,operating expenses & desired profit |
Market/Mark up Pricing |
|
|
Refers to the process of moving goods & services from the firm to the buyers |
Distribution Strategy |
|
|
If the plan is to move goods directly to the ultimate users. This is the most effective channel |
Direct sales |
|
|
This channel involves selling a manufactured product to sold as a finished product to the end user |
Original equipment manufacturer sales |
|
|
Channel members that sell to retailers or other agents for further distribution through the channel until they reach the final users |
Wholesalers |
|
|
Distributors who buy directly from distributors or wholesalers and sell to retailers or end users |
Brokers |
|
|
They sell directly to customers |
Retailers |
|
|
Promotion Strategy must include the ff: |
1. Advertising aspects 2. Packaging 3. Public relations 4. Sales promotion 5. Personal sales |
|
|
This will be the detailed presentation of the publicity strategy to the firm |
Public relations |
|
|
These are means used to support the sales message like special sales,coupons,contests,premium awards,trade in among others. |
Sales promotion |
|
|
These present the sales strategy |
Personal sales |
|
|
In the course of writing the business plan,the small business operator(SBO) is afforded sufficient time to consider all factors relevant to operating the business |
The Plan as Guide |
