Franchise- One business licenses another to
use its name and procedures.
Co-operative- owned by its workers or by
members who buy from the business
Sole Proprietorship- Owned by one person
Partnership- owned by 2 or more partners
Corporation- the business is an artificial
person created by law and owned by shareholders.
General Partnership: Most common form
◦ All partners have unlimited liability for the company`s debts
Each partner could be held responsible for other
partners` debts
Limited Partnership: partners have limited
liability
◦ They are responsible for only amount they have invested (Personal savings cannot be lost even if business fails)
Private Corporation (LEGO, Rolex, IKEA)
◦ Only a few people control all the shares, and therefore the business
◦ Shares are not for sale in the stock exchange
Public Corporation (Apple, Google)
◦ Raises money by making shares available to thousands of people in the stock exchange
If you buy shares, you have little control
Each share you own equals one vote when making
decisions
Crown Corporation (CBC, Canada Post)
People who buys stocks in a corporation are
called shareholders
• Owner is called a proprietor
• An operation in which one business, the
Franchiser, licenses the rights to its name,
operations and design to another business, the
Franchisee
• A skill is the ability to do something specific or to translate knowledge into action.
Marketing has TWO important roles:
◦ Sell what a business makes
◦ Manage a business’s brand
Example
What is Marketing???
◦ All the activities involved in getting goods and
services from the businesses that produce them to the consumers who wish to purchase them
◦ Includes research, development, sales, distribution, advertising and promotion
◦ It DOES NOT include the production of goods and services
Three important parts of a businesses
image
◦ Brand Name
◦ Logo
◦ Slogan
Four things that businesses focus on when
attempting to sell their product/service
1. Product
Inform what you are selling, what it does and they variety to these products
2. Place
Identifies where this product or service can be purchased by consumers
3.
Price
Prices for products must be set with care to
ensure their success.
Today consumers are very price conscious and
look for competitive prices at other stores or on the Internet.
Businesses need to be price sensitive and look
at their competitors’ prices for the same products
Promotion
Promotion is an attempt to sell a product.
Sales promotion encourages consumers to buy
products by using coupons, contests, premiums, samples, or special events
.
◦ 1. Natural Resources
Agriculture, fishing & trapping, mining, water, fuel &
energy, and logging & forestry
Every product in the world results from one of these
resources
◦ 2. Raw Materials
Any materials used in the manufacturing of other
goods
AKA the “ingredients” used to make a good
3. Labour
◦ All physical and mental work needed to produce goods or services
4. Capital
◦ Money invested in a business
5. Information
◦ About new technology, customers, competition, etc.
◦ Involves conducting research
6. Management
◦ People who control all the factors of production listed previously
Managing all employees in a business
◦ The following things are considered at this level
When will we be hiring?
What will be qualifications?
Where will employees come from? (University, high
school, competitors, etc.)
Training programs Administers payroll
Handles employee transitions
Financial Planning and Analysis
◦ Deals with how money will be spent and keeping records of financial transactions
◦ Answers the following…
◦ “How can we spend money that is in the best interest of the company??”
Legal Issues and Responsibilities
◦ Deals with all legal issues involved in running a company
◦ Can involve anything from…
◦ Paperwork/Contracts
◦ Ethics (morally right/wrong)
◦ Copyrights and patents
◦ Employee/Employer relations
…and beyond
All businesses strive to have a high brand
equity
◦ Brand Equity -> The value of the brand in the marketplace
A business that has a high brand equity
means…
◦ Customers can name the brand as part of a specific category
◦ Customers prefer the brand and support it
◦ Customers will likely accept no substitutes
Product enters marketplace (launch)
◦ Usually, consumers don’t know the product exists
◦ Provide info on the product, what it does, where to buy it
◦ People that buy immediately are called early adopters
Early adopters set the trends, leading to an
increase in popularity
Competitors begin to emerge
◦ Competition fuels the growth of the product
People become intrigued by competition
◦ Only several competitors emerge from this stage
Growth is flat (little increase or decrease)
Brand Equity is at its highest
Large profits made in this stage
◦ Advertising less aggressive, low costs of production
◦ Profits used to fund new ideas and products
There comes a point when products fail to
capture new consumers to replace those leaving
Sales decrease
Some declines are temporary (seasonal)
◦ Sometimes a decrease in price or new advertising can reverse this
Business reaches a turning point
◦ Either
Attempt to make product popular again
Price change, improvements, new target market
Or discontinue the product
New technology makes product obsolete Videotape, Walkman, Nintendo Wii, DVDs
Some products do not
go through these stages all stages in this way
Fads have very fast
growth, with very quick decline
Fads typically grow and
decline within a year
Often times losing
money
Many products
have a niche ->
target very specific section of market
Short growth stage,
and a small, but
solid maturity stage
Do not attempt to
expand into other markets
Many products are
only popular during a specific time or season
Sales very high in
season, very low to non-existent out of season
Each new season
brings new styles
Risk Taker
Perceptive
Curious
Imaginative
Persistent
Goal-setting
Hardworking
Self-confident
Flexible
Independent
Research Skills
Gathering Information Using Information
Management Skills Planning
Relationship Skills
Running a business means building good relationships with staff, suppliers, and customers.
Staff Relationships
◦ Employees need to feel that they are treated fairly, are rewarded for their efforts, and have their needs met.
Supplier Relationships
◦ Communication is the most important relationship skill required to deal with suppliers. They act as sources of information for the new business. Suppliers also require feedback to know how to improve their service.
Customer Relationships
◦ In an entrepreneurial business, the customer is the “boss” and the key to the business’ success. Therefore, the entrepreneur and his or her staff must develop a positive relationship with the customer.
