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Identify all the considerations that need to be taken into account when planning a profit enterprise activity.

Extracts from this document...

Introduction

A01 Task-Identify all the considerations that need to be taken into account when planning a profit enterprise activity. (15 marks) Setting aims and objectives As a business should know, they will need to have aims as well as objectives; otherwise they will get nowhere. Aims are what a business aspire to become or do whereas an objective is how a business is going to reach their vision (aim). Mission and vision statements Businesses have a mission statement which gives people reading the statement a picture of what the business is trying to achieve and accomplish. Here an example of a vision statement made by Cancer Research UK. This vision statement highlights everything which the charity intends to accomplish in the future whereas a mission statement is about the companies short term objective; for example one of Tesco's mission statements is 'You shop, We drop', this is the purpose for their ecommerce. Objectives made by a business should be SMART; each letter in SMART stands for something which when included in an objective it will take it to the next level. S-Specific Objectives need to specific to what the business is doing, for example a business cannot have objectives relating to other factors except factors within their line of work. M-Measurable Objectives need to be measurable; this could be in time, quantity etc as this will also help in the objective in becoming more specific. A-Achievable The objectives needs to be achievable as otherwise their will be no point in having the objective since cannot be accomplished. R-Realistic The objective needs to be realistic and down to earth; there is no point in having an and unreachable objective because this will just waste time and cost money for a business. A business needs to recognize that building and maintaining an effective team is critical; everyone in a team needs each other, one person cannot do everything by themselves. ...read more.

Middle

* Equipment constraints This constraint may be critical as it could come at the time were its need has arisen; for example, a business has an important meeting with its shareholders or potential investors, doing this meeting they find that the projector is not working, the computer is not working etc, this will give a bad impression of the business and the potential shareholders may not invest in the business. This is why a business should make sure that they do not end up in situations such as the one mention above. * Competition constraints The size of this constraint depends on the strength of the competition; the graph below shows how the response of a competitor can have an effect on a business's sales. * Physical Constraints With this constraint, a business is restricted to what it can do; for example if a business needs to a Power Point presentation but they lack a projector, this will result in the business not being able to present their presentation etc. As you can clearly see in the above graph, a lot of profit would mean that the threat from a business's competition is low; if the amount of profit you receive is little then this will tell you that you competitor/s have clearly had a positive impact on the market and you should try to match that. Required resources A business needs certain resources to carry out its activities; without them they will struggle to complete their day to day task. The resources are * Finance- this is needed to cover the cost of the business; without finance a business would struggle to meet demand and would collapse. A business could stop this by trying to get investors to invest in their business, this way they will not fall-short. * Time- a business needs to make sure that they keep track of time since money equals time and losing time would mean losing money. ...read more.

Conclusion

Clear aims will also allow a team to focus more on their objectives as they will need to accomplish their objectives in order to reach their aims. Viability Is a team capable of making their enterprise activity a success? This will need to be answered as it will show how likely the enterprise will be viable; ways the could do this is making a Break even chart to show if they will be making a loss or a profit, they could also make a cash flow forecast which will show how much money that will be going in and out of the business, in addition an enterprise can use their cash flow forecast to get financial services from their banks such as a loan which is medium term source of finance which could be used to buy new equipment.. Profit Did the enterprise activity set out make profit? To show how much profit made an enterprise could use a profit and loss account and then use their budget's to see whether it was an adverse variable or favourable by comparing their budgeted figures with the actual figures. Also by using historic budgets an enterprise can compare and calculate the market tend and also they can work out whether they are making less profit or more profit. Interaction An enterprise need to find out how well their team interacted as good team interaction means that their enterprise is nearing success since the team is performing very well whereas a team with no or poor interaction is likely to fail because certain team members may be struggling at important task which are vital and they don't have other team memes to help them. Record of discussion An enterprise should keep a record of all their discussions as the team members can learn from past mistakes. ?? ?? ?? ?? Guled Ali Business A-level A01 Page 1 of 17 ...read more.

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