Nat 5 BM Prelim Revision

Outline skills & qualities of a successful entrepreneur

• Organisation skills

• Interpersonal skills

• Poor time management

• Money management skills

Outline the factors of production

• Land, Labour, Capital and Enterprise (CELL)

• Private, Public, Third

• Primary, Secondary, Tertiary

Outline ways to ensure high customer satisfaction

• Act on feedback

• Have a highly trained workforce

• Do not offer special offers

Define the term 'production'

• Making goods and services to satisfy customers needs and wants

• Creating, buying and using up goods and services

Define the term 'consumption'

• Making goods and services to satisfy customers needs and wants

• Creating, buying and using up goods and services

Identify the external factors

• Political, Economic, Social, Technological, Environmental and Competitive

• Staff, Finance and Technology

• Employees, Managers, Banks, Owners and Customers

Outline the impact of environmental factors on an organisation

• Hot weather may result in an increase in sales of businesses selling ice cream and cold drinks

• May result in an economic boom which increases sales

• Bad weather could cause issues with delivery of raw materials which may result in production having to stop

• May result in an economic recession which means sales will decrease

Outline impacts of competitive factors on an organisation

• Changing tastes and fashions will result in the business having to undertake a lot of market research which will increase costs

• An increase in National Minimum Wage will result in higher wage costs for the business, reducing overall profit

• Competition may decrease their prices which means customer may switch and this may result in a decrease in sales

Outline a sole trader

• A sole trader is owned by shareholders and controlled by a Board of Directors

• A sole trader is a business owned and run by one person

• A sole trader is a business owned and run by 2 or more people

Outline a partnership

• A partnership is owned by shareholders and controlled by a Board of Directors

• A partnership is a business owned and run by one person

• A partnership is a business owned and run by 2 or more people