Thursday 13 June 2013

Unit 16

Unit 16
Business Enterprise 

P1 - Personal SWOT analysis 
Strengths
- Good ICT skills
- Good Customer Service Skills
- Cash handling skills
- Good Maths skills
- Confident
- Team work
- Well organised
- Good memory
Weaknesses

- English
- Impatient
- Determination
- Poor at handling stress
- Short temper
Opportunities

- Able to speak in two languages
- Able to use Microsoft Office Software
- Work experience (Shelter-cash handling, customer service, using till etc.)
- Move to an Access course in Business next year
Threats

- Easily get distracted by friends in the classroom
- I am sometimes overworked because of my job and some of coursework

P2 -  I will explain what rules and regulations are and give examples of them.



Rules and regulations
There are many different rules and regulations for online business. It is a very good idea to start your own online business. If you have a high street shop, you can start your online business to increase your sales and also to expand your business on the market and it will give you a chance to get more customers to get more profit. On the other hand, when you open your online business you will have to pay for tax, copyright, privacy of your website and also for the security. You need to find out about state tax laws and what you will be charged for. When you do your online business, you have to understand rules of copyright. The Digital Millennium Copyright Act says about information you need to know about copyrighting law. The essential part of online business is privacy of customers’ personal details. To protect your customers from identity theft or other customers’ information, you should know about privacy law. Most businesses collect personal details of their customers and online businesses do the same. You have to learn how to keep them safe. You also need to learn how to keep your computers protected.


These are examples of some of rules and regulations in business:








  • The Employment Act - this Act is divided by 19 sections, is telling about dispute resolution, minimum wage, employment agencies and union member expulsion.
  • Distance Selling Act - The Consumer Protection Regulation give rights to receive clear information about the product or service , this information has to be confirmed, a cancellation of 7 days period and protection from payment card fraud. 
  • Trades Description Act 1968 - makes an offence for a trader to make false statements about goods or service, supply or offer to supply any goods to which a false trade description has been applied.
  • Sex Discrimination Act 1975 - is an Act which is protecting men and women from sex or marriage discrimination. It concerned employment, training, harassment or education.

P3 -  I will describe how small businesses prepare to marketing and sell products or services online

There are different benefits and impacts of marketing products or service online. Such as creating a website, advertise your products or service on sites, sending emails to customers or use social networks.


Creating a website will be a good idea because your service will operate 24/7 and you will have good access and can control the content of website e.g. do some offers, add new stock, sales etc.

Advertising products or service online is similar to social networks and it might cost some money, example of this could be Pay-per-Click with Google this may be cheap or expensive

Sending emails to customers cost nothing to send and you are still in touch with all of your customers. You could send them vouchers, new offers or just update and say what is new in your service. You save money for your business by sending emails and customer can receive your email at any time. 

Social networks are free to advertise on such as Facebook. You can target any potential audience and this is very effective use of time and money.

Marketing online is the best and the easiest way to advertise you products or service, to gain more customers and to save you money and time. By lowering your costs you will have more of customers and will get better and higher profits. You can save money and expand your business to make it  more effective and more successful.


By having a bright, colourful website I might get larger amount of potential customers because this website will catch the eye of everyone. Marketing online will give me a chance to reduce my costs (objective) and help me to expand my business by saving money, which is one of the aims of my business.



My business provides full and partial service which customers can choose from and what is suitable for them at most. My services could compete with my competitors. My business does not have an office but I will be able to meet customers in my virtual office which I will be renting for business meetings. As I am new on the market my prices should not be high as my competitor so I take 10% of overall budget for partial service and 15% of overall budget of full service.

Strengths
  • Value added service - by providing exeptional client service and adding value to the client's wedding. I can create a competetive advantage in the marketplace.
  • High motiation level - having high motivated staff members will allow me to focus my efforts on more important tasks.
Weaknesses
  • Lack of funds - I should think about my business plan and my expenses and ask for a loan from the bank.
  • No market information - being relatively new there is no in-depth market information available to base the decisions.
Opportunities
  • Strategic relationships with hotel managers, catering managers etc. - these strategic relationships will lead to repeat business and sustained long term growth.
  • Price strategy  - lower prices, discounts, vouchers will help me to gain more customers.
Threats
  • High competition - I am new on the market, my competitors are more experienced and they have got lots of money.
  • Renting a property - I might not have enough money at the beggining to rent a property for my business.
Market research

I am aiming my service to people who are going to get married and want to make their day an unforgettable experience. My competitors are Absolute Perfection, Tigerlily Weddings and Sarah's Wedding Services. Customers will get free initial consultation whereby I and my customers could decide on timescale and budget. I am going to make sure that nothing is overlooked and every details is checked. I will spend time on building relationship with customers so they will know that they can trust me.

Promotion plan

The philosophy of my business is to create weddings that are not only visually stunning but unique and individual and completely tailored to each bride and groom. I have looked at websites, prices and philosophy of my competitors businesses. My primary research will be a survey. I will prepare 10 questions which people who are going to get married will be able to answer it. I am also going to use leaflets to advertise my company and give out my business cards. I will advertise my company in local newspapers and radio stations. I will sing up for search engines so people will have a quick access to my website. I will also advertise my business on Facebook. 


P4 - I will describe financial issues that can affect preparation for a business.


John Lewis Partnership has got foundations such as: Waitrose Foundation, John Lewis Foundation, John Spedan Lewis Foundation and Golden Jubilee Trust. They all raising money from sales to help to the environment such as farms, education or seniors etc. They not getting any funding. They get money for the company from the all products they sell.


Cancer Research UK is getting funding from events, donations, legacies, volunteers, direct giving, goods they sell in their shops. They do not receive any funding from government, so it is really good idea to help them get more money by donating online. You can make a single donation or do it as a direct debit.


North Middlesex University Hospital get funding by volunteering, The League of Friends and Donations. Also they get fund from patients, local community and local businesses. The League of Friends and volunteers are people from local community who share their free time with patients, visitors and staff. They organise fundraising events to get more money. You can donate by buying a check and send it to the hospital on this address:


Ailsa Bawn, Deputy Director of Finance

Finance Department
North Middlesex University Hospital NHS Trust
Sterling Way

London  N18 1QX


P6 - I will explain the sources of advice and support available when preparing for a business.

Individuals
  • Solicitors/Lawyers
  • Accountants
  • Teacher
  • Mentor
  • Parents
  • Friends
  • Current employer
Solicitors/Lawyers

They are help you to get right legal advice that you may be concerned about. They try to give you the best possible solution but it might be costly. When you decide that you want a legal advice it will help you to avoid crises. You need to choose a solictor first. Then he/she will ask you a lot of different questions regarding to your business to cover the areas such as company structure, business premises, finance, taxes, insurance, cash flow, goods/services, licenses, employment etc.

Accountants

They will help you to layout you business plan and give you advice with funding. They will think about what you have already that could maybe useful to start your business. They will also consider if you are a qualified person to get a loan in order to you business. You business plan is the most important thing that accountant will use to work out if your business will be

Teacher

In early years of education you need to make up your mind and think about what you want to do in the future. Your teachers may help you with this by giving you different advices. When they teach you they get known more about you and your skills and qualities. They can help you to find your first job so you will be more experienced.

Mentor

A mentor is a person who can give an advice in area they have knowledge in. You can have an appointment which such a person. It can be formal on informal. You should ask a lot of questions as their answers will be based on their experience.





Organisations
  • Department for B.I.S - Business, Innovation and Skills
  • Bank
  • Foreign Office (legal advice)
  • Local Authority (council)
  • C.A.B - Citizen Advice Bureau
  • Business Centre 

Department for B.I.S

This is a department for economic growth. They invest in skills and and education, promote trade, innovations and help to start and grow a business. They also protect consumers of regulations. They are modernising company law, control defence, improving the health ans safety business, increasing UK's exports etc.


C.A.B - Citizen Advice Bureau

"We help people resolve their legal, money and other problems by providing free, independent and confidential advice, and by influencing policymakers"

CAB advisers can write letters and make phone calls to service providers on their clients' behalf. They can help people prioritise debts and negotiate with creditors. They can also refer clients to specialist case workers, who are able to represent people at court and tribunals.



When starting up my own business I will use both individuals and organisations to get advice. 


Firstly I will ask for some help and ideas my family and friends. They may give some idea how to raise money to start up my business.Then I might ask my teachers for help as they are well experienced. I will also ask mentor who have a knowledge in my business area. He or she would give me advice and tell me how to start up a business, what documents I need, how to promote and advertise. 


I will also go to the accountant to help me with my business plan and where can get the funding from. Solicitors might cost some money but they will help a lot when starting business such as  as company structure, business premises, finance, taxes, insurance, cash flow, goods/services, licenses, employment etc. and it will be worth to go there. 


I will also make an appointment to Citizen Advice Bureau to get help how to negotiate with creditors. 


M1 - I will explain, using examples, the benefits of starting a business.

There is a lot of different benefits when starting your own business, but still you need to know that you always take a risk as well. There is a big number of different business that you can get into and open it by yourself and start to be self-employed. Benefits are as follows:

- You are your own boss means that you do not need any permission to ask anyone when making a decision about a business, but still you are the most important person and you are responsible for your business
- You are making your own money - you sell your own products, you make them, advertise them to encourage people to buy it, you should be very responsible for the money you are earning, you should keep some money for a business when the bad times will come and the rest you keep for yourself.
- Success (dream) - you are a father/mother of your own business, you should be ready to take a risk, you have no one to blame, if everything goes okay do not forget to thank your employees because they are a part of your business.
- By having your own business you learn new skills, gain new experience and this would help you a lot in the future to maybe expand your business, some owners what more and more, this would be done by working hard 

Those examples are only some benefits, when you will start as a self-employed you will see that  at the beginning you can rely on yourself. It is not easy to set up your own business. I will give an example of a person who's business is growing and growing everyday. 

Richard Branson


Richard Branson is a British investor who found a Virgin Group and is a chairman of more than 400 companies withing Virgin Group. He started with a magazine called 'Student' when he was 16. In 1972, he opened a Virgin Records, later known as Virgin Megastores. In 1980s his Virgin brand grew up rapidly as he set up Virgin Atlantic Airways and know it is expanded to Virgin Records music label. He is the 4th richest citizen in UK with estimated net worth of US$4.6 billion.

M2 -  I will analyse the different aspects that will affect preparation for business.

Financial issues and risks 

All companies cares about a customer. The privacy is very important for every business. They should not release any of personal details of any customer to any company outside of organisation for any marketing purposes. Organisation need to treat all the personal information as a confidential. All businesses collect money through different method payments such as PayPal, debit cards, vouchers, membership cards etc. Charities raise money through donations. Some charities allow you to donate on the website. Hospitals are getting money from government which is raising through taxes. All organisations should have returns policy,

Rules and regulations


  • Statutory Rights - meaning Consumer Rights. When you buy anything the Consumer law protects you. (Entire Agreement - "These Conditions govern our relationship with you. Any changes to these Conditions must be in writing and signed by both parties. In this way, we can avoid any problems surrounding what John Lewis and you are expected to do. You confirm that, in agreeing to accept the Conditions, you have not relied on any representation save insofar as the same has expressly been made a term of these Conditions and you agree that you shall have no remedy in respect of any representation. Your Statutory Rights are not affected by these terms and conditions. Nothing in this Clause shall limit or exclude our liability in respect of any fraudulent or negligent misrepresentation whether or not such has become a term of the Conditions.")
  • Limitation of Liability - is a clause that specifically states that the liability of each shareholder for the company's debts and obligations is limited to the par value of company fully paidup shares. ("We will not be liable, in contract, tort (including, without limitation, negligence), pre-contract or other representations (other than fraudulent or negligent misrepresentations) or otherwise out of or in connection with the Conditions for:
    • any economic losses (including without limitation loss of revenues, profits, contracts, business or anticipated savings); or
    • any loss of goodwill or reputation; or
    • any special or indirect losses")
  • Data Protection Act 1998  - confidential information is information that is not publicly available, that the law protects from misuse or improper disclosure by a person who is under an obligation to keep it confidential. ("We will treat all your Personal Information as confidential (although we reserve the right to disclose this information in the circumstances set out below). We will keep it on a secure server and we will fully comply with all applicable UK Data Protection and consumer legislation from time to time in place.")
  • Returns Policy - return your item in the if possible original packaging within 14 days. 
  • Limitation of Liability - e.g."Cancer Research UK hereby disclaims all warranties and conditions with regard to the Material and any good or services supplied on relation to the Website, whether express or implied or statutory (including all implied warranties and conditions of merchantability and fitness for a particular purpose). In no event shall Cancer Research UK be liable for any indirect, punitive, special, incidencial, or consequential damages whatsoever even if Cancer Research UK has been advised of the possibility of damages including, without limitation, damages for loss of use etc."
  • Data Protection Act 1998 - "We will use your personal information:
- to provide you with the services, products or information you have requested;
- to create an account for you if you register with us;
- for administration purposes
- to further our charitable aims, including for fundraising activities."
  • The Freedom of Information Act - "was passed on 30 November 2000. It gives a general right of access to all types of recorded information held by public authorities, with full access granted in January 2005.  The Act sets out exemptions to that right and places certain obligation on public authorities."
  • Data Protection Act 1998 - "Any information given to the Trust in connection with the NHS Foundation Trust status will only be used for that purpose. Names of Members will be included on a public register unless we are notified in writing that you do now want your name to appear on a public register. Personal details will not be released to a third party without your written authority. The information will be stored and processed with the Data Protection Act 1998."







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