- •Череповецкий государственный университет
- •Кафедра экономики
- •Современный бизнес
- •Contents
- •Введение
- •Unit 1. The effects of demand and supply on business
- •1.1. Markets
- •Test Questions
- •Case study ‘Understanding the Market’
- •1.2. The Operation of Markets
- •If social costs exceed social benefits, the decision to produce a good or service makes society worse off even if the producers make a profit.
- •If social costs are less than social benefits, the decision to produce a good or service will make society better off. Test Questions
- •Case study ‘Record Industry’
- •1.3. The Effects of Government Policy on Markets
- •Indirect taxes
- •Test Questions
- •Unit 2. The competitiveness of a firm
- •2.1. The Performance of an Industry
- •International Trade
- •International comparisons
- •2.2. Government Action to Improve Competitiveness
- •2.3. Government Action and International Trade
- •2.4. Business Competitive Strategies
- •Test questions
- •Case Study
- •Unit 3. Business Organisations
- •3.1. Types of Business Organization
- •3.2. Organizational Structures
- •3.3. Factors Influencing the Organisational Structure
- •Internal factors
- •Test Questions
- •Case Study ‘Business Organisation & Structure’
- •Unit 4. Administrative systems
- •4.1. The Purpose of Administrative System
- •4.2. Administration Functions in Business
- •4.3. Evaluating Administrative Systems
- •4.4. Information Technology in Administration
- •Test Questions
- •Case Study ‘Satellite Supplies’
- •Unit 5. Communications Systems
- •5.1. Why Do Businesses Need Communications System?
- •5.2. The Objectives of Communication
- •5.3. Verbal Communication
- •Internal communications
- •5.5. Evaluating Communication Systems in Business
- •Test Questions
- •Case Study ‘Can You Communicate?’
- •Unit 6. Information Processing
- •6.1. The Purposes of Information Processing
- •6.2. Types of Information Processing Systems
- •Information Technology: positive and negative effects
- •6.3. Evaluating Information Processing Systems
- •Test Questions
- •Case Study “Information Technologies in Business”
- •Unit 7. The principles and functions of marketing
- •7.1. What is Marketing?
- •7.2. The Objectives of Marketing
- •7.3. Implementing the Marketing Mix
- •Test Questions
- •Unit 8. Market Research
- •8.1. What is Market Research?
- •8.2. Sources of Marketing Information
- •Information requirements
- •Internal sources
- •8.3. Primary Research
- •8.4. Market Changes
- •Information on sales
- •Test Questions
- •Case Study ‘Sun Rush’
- •4M Brits shrug off gloom in sun rush
- •Unit 9. Marketing Communications
- •9.1. Targeting an Audience
- •9.2. How to Reach a Target Audience
- •9.3. Product Performance
- •9.4. Guidelines and Controls on Marketing Communications
- •Test Questions
- •Case Study ‘Marketing Communication’
- •Unit 10. Customer Service and Sales Methods
- •10.1. ‘The Customer Is Always Right’
- •10.2. Placing the Product – Distribution
- •Indirect distribution via intermediaries
- •10.3. Closing the Sale
- •Test Questions
- •Case Study ‘Company Handbook’
- •Unit 11. Production
- •11.1. What is Production?
- •11.2. Just in Time Production and Total Quality Management
- •11.3. Improving the Productivity of Labour
- •11.4. Health and Safety at Work
- •11.5. Reducing Pollution from Production
- •In the working environment
- •In the natural environment
- •Test Questions
- •Case Study ‘Production and Productivity Consulting’
- •11.6. The Costs of Production
- •Identifying business costs
- •Indirect costs
- •Insurance
- •Variable costs
- •Test Questions
- •Case study ‘Waterhouse Waffles’
- •Unit 12. Pricing decisions and strategies
- •12.1. The Pricing Decision
- •12.2. Cost-Based Pricing
- •12.3. Market-Based Pricing
- •12.4. Competition-Based Pricing
- •12.5. Problems with Demand- and Competition-Based Pricing
- •Test Questions
- •Case Study ‘What Price Promotion?’
- •Unit 13. Monitoring business performance
- •13.1. Accounting for Business Control
- •13.2. Budgetary Control
- •Variance analysis
- •13.3. Ratio analysis
- •Test Questions
- •Case Study ‘Business Performance’
- •Unit 14. Preparing a business plan
- •14.1. What Is a Business Plan?
- •14.2. The Purposes of a Business Plan
- •14.3. Legal and Insurance Implications
- •Insurance
- •14.4. Business Resources
- •14.5. Potential Support for a Business Plan
- •Some review questions
- •Unit 15. Producing a Business Plan
- •15.1. Business Objectives and Timescales
- •15.2. The Marketing Plan
- •15.3. The Production Plan
- •15.4. The Financial Plan
- •15.5. Conclusion
- •Some Review Questions
- •Case Study ‘Business Plan’
15.5. Conclusion
To be workable, a business plan must be realistic; it must take account of the shortcomings of the firm and of the people involved. This will help to ensure that the plan is achievable within the resources available. For an average business, a three-year projection will be adequate, with the first year shown in detail, and the next two in outline. In quickly changing industries, such as computers or consumer electronics, the planning horizon may need to be shorter – perhaps 18 months to 2 years.
A business plan should not be seen as a rigid, inflexible answer to a firm’s problems. Business conditions are continually changing, and a good business will adapt its plans to suit changes in the market or other circumstances. Business plans are only useful if they are realistic. A plan serves no purpose unless it can be delivered.
Research into small business growth and success suggests that there is a clear correlation between the amount of time invested in business planning and the ability of firms to sustain stable growth over time.
Some Review Questions
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Suggest and explain some business objectives a newly-created small business might set in the short, medium, and long term.
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What are the five main parts of a business plan?
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What is the ‘marketing mix’? Outline its importance in a business plan.
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What is the difference between job production, batch production, and flow production?
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What type of production process would you recommend organizations producing (a) ice lollies and (b) dried flower arrangements to use, and why?
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Why is cashflow so important to a business?
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Suggest two ways in which a new firm can use its business plan to monitor performance.
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Explain the possible resource requirements of a new business selling hand-printed silk ties.
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What promotional methods would you recommend a newly self-employed plumber to use to publicize his service? Give reasons.
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A friend of yours is investigating premises for her new hairdressing salon. What factors would you advise her to consider when choosing premises, and what potential costs should she be aware of?
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You have been operating a mobile car repair service for six months. You decide to buy a bigger van using a loan from your bank. How will these transactions affect both your balance sheet and profit and loss account?
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What factors should you consider in designing a product to sell?
Case Study ‘Business Plan’
Tasks:
Prepare a business plan in five parts for a good or service of your choice. The purpose of the plan is to secure finance from a lender, and the plan should be produced with this in mind. The plan should contain a section on each of the following:
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Your business objectives for the short medium, and long term
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An outline marketing plan covering your product idea, its market potential, pricing and promotion strategies, distribution, methods of selling, and a marketing budget. The marketing plan should suggest a schedule of timings for each of these items.
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An outline production plan covering product design, development, and production methods
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The resource requirements of the business covering human, physical, financial, and time resources
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Financial data and forecasts, including a cashflow forecast, opening and projected balance sheet and profit and loss statement and an outline of your proposed means of monitoring and reviewing business performance and your financial systems.
In each section you must justify the choices you have made – for example, your choice of product, size and location of premises, production method.
Where appropriate, graphs and tables should be included in the text of your plan. Useful illustrations will include:
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A table of your business start-up costs
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A line chart of your projected net cashflow
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A break-even graph to show expected revenues and costs at different levels of output
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GANNT and PERT charts of your planned marketing and production activities
Prepare and make a short presentation of the main points of your plan to your lender. Use a range of visual aids, including charts and graphs, and prepare a brief summary of the plan to hand out to the lender.