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1.1.4 Starting A Business

The document discusses the main business functions such as human resources, finance, marketing, and operations management. It also examines the reasons for starting a business, including making money, autonomy, personal challenge, and unfilled market opportunities. Some challenges of starting a business include a lack of funds, strong competition, an underskilled workforce, and economic or political shocks. A SWOT analysis and STEEPLE analysis can help identify a business's internal strengths and weaknesses and external opportunities and threats from factors in its environment.

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Wanna One Hatsune
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34 views

1.1.4 Starting A Business

The document discusses the main business functions such as human resources, finance, marketing, and operations management. It also examines the reasons for starting a business, including making money, autonomy, personal challenge, and unfilled market opportunities. Some challenges of starting a business include a lack of funds, strong competition, an underskilled workforce, and economic or political shocks. A SWOT analysis and STEEPLE analysis can help identify a business's internal strengths and weaknesses and external opportunities and threats from factors in its environment.

Uploaded by

Wanna One Hatsune
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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August, 2022

• What are the main business functions


and their roles?
• What are the reasons for starting up a
business or an enterprise?

1.1 Business functions and reasons for starting up a business


Operations
Finance and
Sector Human Resources Marketing Management /
Accounts
Production

Handling all aspects Ensuring that the Identifying the needs and Making goods and
related to the workforce business has sufficient wants of customers in providing services from
funds in order to conduct order to provide goods the available resources of
Function its daily operations and services meeting a business to meet the
those requirements, needs and wants of its
usually in a profitable way customers

Recruitment, induction, Paying suppliers, creditors Market research Ensuring that goods and
training, development, and employees (right Determining appropriate services meet production
appraisal, promotion, amount, on time) pricing strategies targets, deadlines and
compensation ($), Forecasting financing Promotion to persuade certain quality standards
dismissal of staff requirements (cash flow) customers about buying Production methods
Motivation strategies Assisting Marketing to the products Inventory management
Activities (financial such as determine suitable pricing Distributing the products Quality management
bonuses, incentives, and Evaluating investment to customers efficiently Production location
non-financial such as well) projects decisions
Preparing the final Research & Development
accounts (financial Crisis / contingency
statements management
"Never start a business just to make money. Start a business to make a difference." - Marie Forleo,
American entrepreneur and New York Times bestselling author

REASONS FOR STARTING


UP A BUSINESS
Money?
Autonomy?
PUSH FACTORS Personal challenge? PULL FACTORS
Passions?
Family ties?
Negative Makes people want Unfilled Market opportunities? Makes people want Positive
condition to leave a particular Making a difference? to enter a particular condition
situation Work-life balance? situation
“There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth
Godin (b.1960), American entrepreneur and best-selling author

CHALLENGES Internal – related to the 4 main business


Lack of funds functions (HR, Finance, Ops, Marketing)
Strong competition
Small market / no market
Unskilled staff
Poor management skills
Economic, environmental or
political shocks External – beyond the company’s control
The SWOT analysis is a simple tool for a
business to analyze its internal strengths
and weaknesses, and external
opportunities and threats.

A SWOT analysis can help a business


understand its current position and
identify strategies to improve the
business.
The external environment can affect all
aspects of a business including what it wants
to produce, how much to produce, where to
produce and sell, and what resources to use.
The STEEPLE analysis helps businesses
identify those factors.

External factors can affect:


• The demand for products
• The cost and availability of products
• The nature of the transformation process

These are some examples of such impacts:


Analyze the business led by the
entrepreneur you researched last week

Identify the strengths, weaknesses,


opportunities and threats (SWOT
analysis) the business might have faced
when it first started

For the external factors, use the


STEEPLE analysis

Do you think the business faces the


same situation today? If not, what
changed?

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