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
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Idea
Finance
Workers
Capital equipment
Suppliers
Customers
Marketing
Legal

Canadian Business Pod Cast
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
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
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
Possible Problems
Statistically 40% of new businesses fail in
their first year
 Mainly due to:
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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
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?