Mind map
ENTREPRENEUR'S STUDY
Map content
ENTREPRENEUR'S STUDY
Business objectives
- Most effective
- Specific
- Measurable
- Attainable
- Relevant
- Time bound
- Main objectives
- Survival
- Profit maximization
- Profit satisfying
- Sales growth
- Objectives conflict
- Growth vs profit
- Short-term vs long-term
- Focus more on short-term objectives and company performance
- Alternative aims and objectives
- Ethical and socially responsible objectives
- Provide a service to the public (public sector corporations)
- To ensure the companies monitored comply with the laws laid down (public sector organizations)
- Health care and education establishment- to provide a service
- Charities and voluntary organizations
- Changing objectives
- Move to another objective
- Competitive environment might change
- Technology might change product designs
- Most effective
Business entity in Malaysia
- Sole propriety
- -Owned by one person -May have one or more employees
- Legal requirements
- Keep proper business accounts and records
- Comply with legal requirements (protection)
- Advantages
- Total control
- Cheap and easy to start up
- Keep all the profit
- Business affairs are private
- Disadvantages
- Unlimited liability
- Difficult to raise finance
- Difficult to enjoy economies of scale
- Problem of continuity
- Why successful?
- Offer specialist services
- Sensitive to the needs of customers
- Cater the needs of local people
- Partnerships
- - Two or more owners - not exceed 20 persons
- Deed of partnership
- Amount of capital
- Dividing profits and losses
- Votes each partner has
- Rules to take new partner
- How partner leaves
- Advantages
- Spreads the risk
- Bring money and resources
- Skills and ideas
- Increased incredibility
- Disadvantages
- Share the profits
- Less control
- Disputes over workload
- Do not see eye to eye
- Why not become a private limited company?
- Cost money
- Company accounts are filed
- Spend money on auditor
- Partner has an agreed slice of business (finished)
- Limited companies
- Owned by its shareholder
- Why buy shares?
- Get dividends
- Value of the share may increase and can be sold for a profit
- Influence the management of the company
- Why buy shares?
- Limited liability
- Inventors can lose the money they invested
- Private limited companies
- Public limited companies
- Disadvantages
- Costly and complicated to set up
- Available financial information
- Shareholders expect a steady stream of income
- Threat of takeover
- Disadvantages
- Flotation
- Owned by its shareholder
- Franchises
- Advantages
- Rapid expansion
- Large profits
- Selling franchises
- Royalty payments
- Selling raw materials and equipment
- Advantages setting up as a franchise
- Franchiser support franchisee
- Benefit from national advertising
- Less investment
- Less risk
- Disadvantages setting up as a franchise
- Expensive
- Have to pay percentage of your revenue
- Less flexible
- Advantages
- Cooperatives
- Retail co-operatives
- Marketing or trader co-operatives
- Worker co-operatives
- Problems
- Long decision-making process
- Difficult to raise finance
- Idealistic and ethical aims may not be agreeable with all members
- Not lead to profits on the long run
- Sole propriety
Stakeholders
- Any individual or organization that is affected by the activities of a business
- Main stakeholders
- Shareholders
- Management and employees
- Customers and suppliers
- Bank and other financial organizations
- Government
- Trade unions
- Pressure groups
- Difference
- Shareholders
- Hold shares in the company
- Stakeholders
- Have an interest in the company but do not own it
- Shareholders
Information
- Description
- Agriculture Mind Map on ENTREPRENEUR'S STUDY, created by dnsofea _ on 23/12/2018.
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- dnsofea _
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