Course Information
Course Information
Course Information
Course Team
Course Developer: Prof. May Ifeoma Nwoye Ph.D.
Course Writer: Prof. May Ifeoma Nwoye Ph.D.
Instructional Designer: Inegbedion, Juliet O. (Ph.D.)
Learning Technologists: Dr. Adewale Adesina, Nura Maidoki, & Henry Ude
Content Editor: Prof. Abdul Salam Jibril
Copy Editors: Inegbedion, Juliet O. (Ph.D.) & Christiana Uzoukwu
(Mrs)
Ice Breaker
Upload your passport and introduce yourself by stating your names, what you
do for a living, your hobby, your expectation in this course and the name you
would preferto be called during this course.
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© 2018 by NOUN Press
National Open University of Nigeria
Headquarters
University Village
Plot 91, Cadastral Zone
Nnamdi Azikiwe Expressway
Jabi, Abuja
Lagos Office
14/16 Ahmadu Bello Way
Victoria Island, Lagos
e-mail: centralinfo@nou.edu.ng
URL: www.nou.edu.ng
Published by:
National Open University of Nigeria
Headquarters, University Village
Plot 91, Cadastral Zone, Nnamdi Azikiwe Expressway
Jabi, Abuja, Nigeria
Printed 2018
ISBN: 978-978-8521-94-5
2
Course Guide
Introduction
Welcome to GST 302: Business Creation and Growth. GST 302 is a two-
creditunit course that has minimum duration of one semester. It is a compulsory
course for all undergraduate students in the university.This course is to develop
your competence and confidence in creating viable businesses with high
potentials for new value addition and high income. The course is design to
enable you direct your creative and innovative ideas into becoming an
entrepreneur that will make you achieve economic independence after
graduation.
Course Objectives
Each study unit has introduction, intended learning outcomes, the main content,
conclusion, summary and references/further readings. The introduction will tell
you the expectations in the study unit. Read and note the intended learning
outcomes (ILOs). The intended learning outcomes tell you what you should be
able to do at the completion of each study unit. So, you can evaluate your
learning at the end of each unit to ensure you have achieved the intended
learning outcomes. To meet the intended learning outcomes, knowledge is
presented in texts, video and links arranged into modules and units. Click on
the links as may be directed but where you are reading the text off line, you will
have to copy and paste the link address into a browser. You can download the
audios and videos to view off line. You can also print or download the textsand
save in your computer or external drive. The conclusion gives you thetheme of
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the knowledge you are taking away from the unit. Unit summaries are
presented in downloadable audios and videos.
There are two main forms of assessments – the formative and the summative.
The formative assessments will help you monitor your learning. This is
presented as in-text questions, discussion forums and Self-Assessment
Exercises.
Study Units
There are 25 study units in this course divided into seven modules. The
modules and units are presented as follows:
Module 4 Marketing
Unit 1 Concept of Marketing: Small and Big Business Marketing
Unit 2 Marketing Mix
Unit 3 Modern Marketing Tools
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Module 5 Ethics and Social Responsibility
Unit 1 The Importance of Ethics in Business
Unit 2 Ethical Behaviour and Practices in Nigeria
Unit 3 Community Development Projects/Walfare
https://knowhownonprofit.org/your-team/people-management-
skills/change/tools/transition
https://knowhownonprofit.org/your-team/people-management-
skills/change/tools/transition
www.jblearning.com/samples/0763749109/49109_CH04_056_072.pdf
https://www.decision-making-solutions.com/types_of_decision_making.html
https://www.mbaofficial.com/mba.../decision.../explain-the-different-types-of-
decision.
https://www.gnapartners.com/article/stages-business-growth
https://hbr.org/1983/05/the-five-stages-of-small-business-growth
Presentation Schedule
The presentation schedule gives you the important dates for business plan and
enterprise presentations, participation in forum discussions and participation at
facilitation. Remember, you are to upload your business plan and enterprise in
the designated platform at the scheduled time. You should guide against delays
and plagiarisms in your work. Plagiarisms is acriminal offence in academics and
is highly penalized.
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Assessment
There are two main forms of assessments in this course that will be scored.
The Continuous Assessmentsand the final examination. The continuous
assessment shall be in three fold. There will be business plan and enterprise
presentation. The business plan presentation shall have a maximum score of
20%, the Enterprise shall have a maximum score of 30% and your participation
in the discussion forums including your portfolio presentation shall have a
maximum score of 10% if you meet 75% participation in the forum discussions.
All together making maximum of 60% for continuous assessment in this course.
The final examination for GST 302 will be maximum ofone and half hours and it
takes 40 percent of the total course grade. The examination will consist of
60multiple choice questions that depict application, analysis and evaluation of
businesses.
Note: You will earn 10% score if you meet a minimum of 75% participation in
the course forum discussions and in your portfolios otherwise you will lose the
10% in your total score. You will be required to upload your portfolio using
google Doc. What are you expected to do in your portfolio? Your portfolio
should be note or jottings you made on each study unit and activities. This will
include the time you spent on each unit or activity.
Carefully work through each unit and make your notes. Join the online real time
facilitation as scheduled. Where you missed the scheduled online real time
facilitation, go through the recorded facilitation session at your own free time.
Each real time facilitation session will be video recorded and posted on the
platform or to your mail. The audio version of it will also be posted to your mail.
In addition to the real time facilitation, watch the video and audio recorded
summary in each unit. The video/audio summaries are directed to salient part in
each unit. You can assess the audio and videos by clicking on the links in the
text or through the course page.
Work through all self-assessment exercises. Finally, obey the rules in the class.
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Facilitation
You will receive online facilitation. The facilitation is learner centred. The mode
of facilitation shall be asynchronous and synchronous. For the asynchronous
facilitation, your facilitator will:
• Present the theme for the week;
• Direct and summarise forum discussions;
• Coordinate activities in the platform;
• Score and grade activities when need be;
• Upload scores into the university recommended platform;
• Support you to learn. In this regard personal mails may be sent.
• Send you videos and audio lectures; and podcast
Read all the comments and notes of your facilitator especially on your
assignments, participate in the forums and discussions. This gives you
opportunity to socialise with others in the programme. You can raise any
problem encountered during your study. To gain the maximum benefit from
course facilitation, prepare a list of questions before the discussion session. You
will learn a lot from participating actively in the discussions.
Finally, respond to the questionnaire. This will help the university to know your
areas of challenges and how to improve on them for the review of the course
materials and lectures.
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CONTENTS
Module 4 Marketing
Unit 1 Concept of Marketing: Small and Big Business Marketing
Unit 2 Marketing Mix
Unit 3 Modern Marketing Tools
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Module 1 Concept of Business and New Value Creation
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
For every action that is taken whether as an individual or group, there is a plan.
A plan is systematic and scientific. Before the launching of the business you
logically organise the process you want to adopt to achieve the set business
objectives. The organised procedure is the planning. Therefore, in this unit you
will learn the procedure to take to organise your start up.
By the end of this unit, you will be able to write a presentable business plan.
The term “business plan” has different meanings to different people. Banks that
release their own planning guidelines consider formal business loan applications
to be synonymous with business plans. Venture capitalists see them as
investment proposals, purely fund raising documents. Corporate managers think
of them in terms of departmental budgets and financial forecasts.(Touchie,
2005).
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According to Kuratko and Hodgetts (1998), the business plan describes to
investors and financial sources all of the events that are likely to affect the
proposed venture. Details are required for various projected actions of the
venture, with associated revenues and costs outlined. A Business Plan
describes a business opportunity. It is like a road map because it tells you what
to expect
and what alternative routes you can take to arrive at your destination. Planning
helps you to work smarter rather than harder. It keeps you future oriented and
motivates you to achieve the results you want. Perhaps most importantly, the
process of completing a Business Plan enables you to determine what
commitment you need to make to the venture (Department of Trade and
Economic Development, 2010)
Self-Assessment Exercise
Is it really necessary to have a business plan when the business is yours and
you can take any decision you like at any time?
Feedback
Yes.
Business plan is imperative.
It describes to investors and financial sources all of the events that are
likely to affect the proposed venture.
Venture capitalists-
see plan as investment proposals, purely fund raising documents.
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Importance of Business Plan
When you think about what a business plan is your mind probably goes right to
the bank and the process of applying for business financing, as that is the most
common use for business plans. But if you are creating this valuable tool only as
a part of a required financing package, you are overlooking its most important
function: planning (Cagan, 2006). Whether you are new to the world of
entrepreneurship or a seasoned veteran, a properly crafted business plan can
help solidify your vision. And when you are remaking an on-going venture, a
written strategy (business plan) can help ensure its success. Taking cognizance
of that, there are particular events that spur the need for a full-scale business
plan.
According to Timmons and Spinelli, (2004), developing the business plan is one
of the best ways to define the blueprint, strategy, resource, and individual
requirements for a new venture. A good business plan must be developed with a
view to exploiting the defined opportunity, developing the opportunity and
determining the resources required, obtaining those resources and successfully
managing the resulting venture (Hisrich, Peters and Shepherd,2008).
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entrepreneur to control future risk, prepare for future uncertainty, control
business growth, take charge of organizational growth and development. It
allows for consistencies in decision-making.
Benefits of Planning
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The product or service Technical description of the business.
Financial information
The market
Business organisation
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2. Legal Considerations: Licenses; Federal and State taxes; Consumer
Law; Business Law; Insurance.
3. Premises: Space required; Buy or rent contracts; Commercial lease
requirements and problems; Availability of suitable premises.
2. Marketing:
Who are your potential customers?
• How will you attract and hold your share of the market?
• Who are your competitors?
• How are their businesses prospering?
• How will you promote sales?
• Who will be your best suppliers and why?
• Where will the business be located?
• What factors will influence your choice of location?
• What features will your location have?
• How will your building contribute to your marketing strategy?
• What will your building layout feature? 3. Organization:
• Who will manage the business?
• What qualifications will you look for in a manager?
• How many employees will you need and what are their job descriptions?
• What are your plans for employees’ hiring, salaries and wages, benefits,
training and supervision?
• How will you manage finances?
• How will you manage record-keeping?
• What consultants or specialists will you need?
• What legal form of ownership will you choose?
• What licences and permits will you need?
• What regulations will affect your business?
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• Marketing Plan.
• Sales Strategy.
Self-Assessment Exercises
a. Readable
b. Accommodating
c. Explicit
d. Durable
a. Financial information
b. Product or service
c. Business objective
d. Liquidation plan
6. The type of business you are planning should be stated under ____
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a. Description of the business
b. Marketing
c. Organization
d. All of the above
a. Executive Summary
b. Product/Service
c. Acquisition
d. Technology
a. Listing in details all the things you need to make the business works.
b. Identifying logistical and other business related problems and solutions.
c. Serving as a solid foundation for developing your business plan.
d. All of the above
10. The need for a full-scale business plan according to Cagan (2006) is spurred
by the following except one:
Feedback
1. D
2. C
3. A
4. D
5. A
6. A
7. D
8. C
9. D
10. D
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4.0 Conclusion
• Developing the business plan is one of the best ways to define the
blueprint, strategy, resource, and individual requirements for an on-going
venture.
• A properly crafted business plan can help solidify your vision.
• When you are undertaking a new venture (feasibility studies), or
remaking an old one (business plan), a written strategy can help ensure
its success.
• Business Plans and Feasibility studies are required as controlled process
for identifying business problems and opportunities, determining
objectives, describing situations, defining successful outcomes, and
assessing the range of costs and benefits associated with several
alternatives for solving a problem.
5.0 Summary
To recap what you have learned in this unit,click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/hoEURA1oyQ4
Audio
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Unit 2 Start-up Decision – What Motivate people to begin
new businesses
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Don’t go into a business because your friend or someone you know is into that
business. Go into a business because you have passion for it. Your passion is
first to motivate your business start-up. Read more in the main content.
By the end of this unit, you will be able to identify and demonstrate a motivating
criteria for business start-up.
Nothing beats the freedom of being the boss — at least when it comes to the
entrepreneurial efforts of small business owners.
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It is interesting to contemplate what drives people to start a business. Starting a
business of your own requires money, many hours of hard work, patience and
the understanding that you might not make a whole lot of money the first year or
two or your business could fail completely.
Starting a business is something that many people think about at one time or
another during their lives. Motivations for wanting to become an entrepreneur
can vary greatly. Common motivators can include escaping the corporate grind,
taking greater advantage of special skill sets, supplementing income or a strong
drive to achieve personal or financial success.
According to the American Small Business Administration, approximately 30
percent of small businesses close their doors within the first two years. Yet
people still start their own businesses on a regular basis. There are many
factors that drive entrepreneurs to strike out on their own.
Business Involvement
Make it Personal
Being in Charge
Some entrepreneurs start their own business because they want to be their own
boss and in charge of all of the day-to-day operations of a company. The
entrepreneur wants to be the one making the important business decisions,
determining the direction the company will take, making the call on product
development and marketing and being responsible for every aspect of the
company's operation.
Financial Need
According to Know Accounting, some entrepreneurs are driven to start their own
company out of necessity. If a job does not offer enough income, an
entrepreneur might start a side business to generate extra income that can turn
into a full-time business.
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Accomplishment
Self-Fulfillment
If you feel that your company is not utilizing your talents properly, starting a
business can allow you to maximize your abilities and create a sense of
fulfillment. For example, if you're a police officer whose investigative skills are
not being put to the test, you could consider starting your own investigative
agency where you can make full use of your abilities.
Additional Income
Perhaps you're happy with your present job but would like to supplement your
income. If you have a special skill or a hobby you enjoy, you can use these to
start a small business on the side. If you enjoy writing, for example, you can look
for freelancing opportunities for the local newspaper or online.
Second Career
If you're a retiree, starting a business can take the form of a second career.
People who retire early from a job may have the desire to continue working.
Older retirees may feel that they need additional income or have concerns about
how long their present retirement benefits may last. Starting a business in
retirement can also allow for pursuing a passion in addition to providing income.
Passion. The passion you feel as an entrepreneur – for the startup life, for your
company, for your vision – is all-encompassing. You’re driven to succeed, to
experience everything a startup has to offer, and to make things happen.
P1assion is a prerequisite to starting a business, and it’s also a huge motivator,
because through your startup you fuel your passion.
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Changing the World. Not every business has the potential to change the world,
but many entrepreneurs take this mantra to heart. Lots of entrepreneurs believe
their businesses will change the world. It’s part of creating value. Starting a
business and tossing yourself into it with unequivocal passion, gives you the
chance.
Self-Assessment Exercise
Feedback
1. Flexibility. Work your own hours.
2. More spare time (eventually). Spend more time with your family and friends. 3.
Call the shots. Nobody else is going to set the rules. You are.
5. Sell how you want to sell. Online? In person? Inbound? Outbound? It’s your call.
6. Create your own environment. You can set the formality and culture of your
organization.
8. Create something from scratch. Watch your organization grow from start to
finish.
10. Build a team. You decide who to hire and bring into your company.
11. Create jobs. Improve the economy with new job opportunities.
12. Help people. Use products and services to improve people’s lives.
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4.0 Conclusion
You can have the best business if you consider all the above factors and
determine to also succeed. Your friend may have only an enviable business but
you will have an enviable business and turnover
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/fuZux8IoYUw
Audio
https://www.inc.com/john-rampton/motivation-tips-for-launching-your-
startup.html
https://smallbusiness.chron.com
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Unit 3 Opportunity Search and Identification
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
This unit will give you an insight of why you need to search for opportunity and
how to key into opportunity for start-up. At start-up you may not have all it takes
to commence. But ability to key into opportunities around you could make your
dream come true.
By the end of this unit, you will be able to evaluate opportunities for business
start-up
Opportunity refers to the extent to which possibilities for new ventures exist and
the extent to which entrepreneurs have the leeway to influence their odds for
success through their own actions. Simply put, opportunity is a perceived means
of generating incomes that previously have not been exploited and are not
currently being exploited by others. Opportunity identification can, in turn, be
defined as the cognitive process or processes through which individuals
conclude that they have identified an opportunity. It is important to note that
opportunity identification is only the initial step in a continuing process, and is
distinct both from detailed evaluation of the feasibility and potential economic
value of identified opportunities and from active steps to develop them
through new ventures. It is essentially a situation in which new goods, raw
materials, markets and organizational strategies can be introduced through the
formation of new means, ends or means-ends relationships.
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The focus these days is on innovative opportunities which are the ones that truly
break new grounds rather than merely expand or repeat existing business
models. Opening a new Hausa or Igbo cafeteria in a neighborhood dominated
by a populace from these extractions that currently do not have one is an
example. Not everyone can identify opportunities. Some individuals are more
likely to identify and exploit opportunities than are others. Opportunity is a major
process of self-evaluation of one’s ability to start, operate and run a business
venture with the popular analysis often referred to as SWOT (Strength,
Weaknesses, Opportunity and Threat). It helps to check the chances of
succeeding in a particular choice of venture open to an individual through his
experiences. These experiences include family, religious or professional
linkages, membership of any network group.
Searching for a business opportunity that is right for them is the major challenge
would- be entrepreneurs face. New startups always focus on introducing a new
product or service based on an unmet need, select an existing product or
service from one market and offer it in another where they are not available; and
sometimes the firm relies on a tried and tested formula that has worked
elsewhere in a franchise setup.
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B. Theory and Practice
Opportunity identification is the collection of three main factors, which are the
entrepreneur’s background, the business influence and the general business
environment. Opportunity identification has five stages that lead to ‘recognition’.
The five stages are discussed in relationship with the process of opportunity
identification. These stages are:
• Preparation
• Incubation
• Insight
• Evaluation
• Elaboration
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Preparation
Preparation stage is that knowledge and experience exercised just before the
opportunity discovery process. These knowledge and experience are not often
deliberately acquired. However, preparation itself is usually a deliberate attempt
to widen capability in an area and become sensitive to concerns in a field of
interest. In an organized situation, the background of the business, the products
or services or the technological knowledge must have majorly informed the main
ideas of the successful venture. One cannot however, rule out the role of new
ideas and expertise originating from individuals in the organization that will
eventually result in a new business.
Incubation
Incubation stage is the part of the opportunity identification process that involves
the consideration of a concept or a specific problem ordinarily not subjected to
conscious or formal analysis by a businessman or his team. It is usually not
consciously done and therefore more often than not, an instinctive and
unempirical approach for the consideration of several potential alternatives.
Insight
Evaluation.
Elaboration.
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build confidence and guarantee the practicability of the business. Elaboration
also reduces uncertainties by providing the detailed planning activities after
the evaluation viability confirmation. This will eventually reveal the concept
areas that still need further analysis and attention.
Self-Assessment Exercise
Feedback
Writing a business plan and weighing all relevant factors can help you better
plan your entry into new areas. This will help you:
4.0 Conclusion
To capture business opportunities, you must listen to your potential clients and
past leads. When you're targeting potential customers listen to their needs,
wants, challenges and frustrations with your industry. Listen to your customers.
Look at your competitors
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/-HwDkN6ABlw
Audio
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6.0 References/Further Reading
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Unit 4 Legal Issues at Start-up
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
All over the world, there are some laws that entrepreneurs must follow to ensure
their businesses are legally sound right from its foundation. If these laws are not
obeyed, the entrepreneur may face a serious legal challenge in future which will
affect his business negatively.
By the end of this unit, you will be able to apply legal guidelines to start-up.
All over the world, there are some laws that entrepreneurs must follow to ensure
their businesses are legally sound right from its foundation. If these laws are not
obeyed, the entrepreneur may face a serious legal challenge in future which will
affect his business negatively.
One needs to make sure that all legal formalities have been put in place. To
avoid severe legal and liability consequences in future, a targeted business plan
should list all legal concerns that might negatively affect the business and
invariably other investors. The right legal structure that will suit ones particular
type of business or circumstances and ambitions should be considered.
Company filings and regulations may not the most exciting parts of your startup.
Yet they’re critical to the health of your business and personal finances. Here's a
quick rundown of eight administrative aspects you need to consider for your
startup or small business. Of course, depending on your situation and type of
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business, hiring a tax accountant and/or good attorney with specific experience
in your industry can go a long way toward helping you steer clear of trouble.
1. Did You Pick a Name? Make Sure You’re Legally Permitted to Use It Before
you start printing out business cards, make sure the great new name you
thought of isn’t infringing on the rights of an already existing business. In
most cases, you don't need an attorney for this task, as you can perform a
free search online that looks at business names registered with the
Secretary of State — that will tell you if the name is available in your state.
Then, take your search to the next level and conduct a no-conflict, free
trademark search to see if your name is available for use in all the states.
And considering you can still infringe on someone else’s trademark even if
they’ve never formally registered it with the . Patent and Trademark Office,
you should also do a comprehensive search into all state and local
databases (look for an affordable online service to help you with this).
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practice as you won’t have to provide your personal social security number
for business matters.
7. File for Trademark Protection. You're not actually required by law to register
a trademark. Using a name instantly gives you common law rights as an
owner, even without formal registration. However, as expected, trademark
law is complex and simply registering a DBA in your state doesn’t
automatically give you common-law rights. In order to claim first use, the
name has to be ‘trademark able’ and in use in commerce. Since you’ve
spent untold hours brainstorming the ideal name, and you’ll be putting even
more effort into cultivating name recognition, you should consider registering
your trademark for proper legal protection. Registering a trademark makes it
exponentially easier to recover your properties, like if someone happens to
use your company name as their Twitter handle. Having the right
documentation means you have the legal right to that handle, and Twitter will
take steps to give it to you.
8. Open a Bank Account to Start Building Business Credit. When you rely on
your personal credit to fund your business, your personal mortgage, auto
loan and personal credit cards all affect your ability to qualify for a business
loan (and for how much). Using business credit separates your personal
activities from that of the business. To begin building your business credit,
you should open a bank account in the name of your company, and the
account should show a cash flow capable of taking on a business loan. No
matter how busy things with your startup get, set aside some time to address
these matters and take your legal obligations seriously. Getting your legal
ducks in a row right from the start will help you avoid any pitfalls down the
road, and will help you scale your business successfully as you grow.
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In Nigeria, whether it is a corporate or limited company or even an enterprise,
you will need to register with some government bodies, parastatals, agencies or
even some professional bodies. It all depends on your business idea and hence
you need to seek specialist legal advice that could cover copyright, trade
marking, design registration or patenting
Here are five important legal requirements to review and understand before
launching your small business.
Documents play an essential role in protecting the interests of the business and
business owners over the course of a company’s lifetime. Here is a list of the 10
most common legal documents to help you determine what your business
needs.
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and obligations of members and what happens when someone wants out
of the business. Once members sign the document, it becomes an
official, binding contract.
6. Business plan. A business plan may not be a legal document, but it’s
required should you ever decide to seek financing or sell your business.
Your business plan can be one page or a hundred pages, as long as it
provides clarity on your business’ opportunity and your roadmap to get
there.
8. Online terms of use. While not required by law, any business with a
website should include their terms of use. These pages can limit your
liability in cases where there are errors in your own content, as well as
information contained in any hyperlinks from your website. Furthermore,
your Terms should let visitors know what they can or can’t do on your
site, particularly in cases where visitors can comment on blogs or share
their own content.
9. Online privacy policy. If you gather any information from your customers
or website visitors (such as email addresses), you are legally required to
post a privacy policy that outlines how this information will be used and
not used.
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10. Apostille. Businesses involved in international trade with other Hague
Convention countries may need a certificate, known as an "apostille,'' that
authenticates the origin of a public document (like articles of
incorporation) so they can be recognized in another country. Apostilles
are only valid in countries that are members of the Hague Convention. In
most cases, you don’t need to create any of these documents from
scratch. You can find free templates online to serve as a starting point.
While these legal documents are important part of staying compliant with
your state requirements, they are more than empty formalities. By taking
the time to think about the various elements on each document, you are
setting the right foundation for your business.
Self-Assessment Exercise
Feedback
Important legal requirements to review and understand before launching
your small business.
4.0 Conclusion
The majority of businesses are regulated with both government and legal
oversight in order to ensure that they are operating within the confines of the
law. As a new business owner, you should be familiar with all the legal
considerations as you start your new business. While many entrepreneurs have
a basic understanding of the law, the majority of them do not consider the legal
implications of starting a company.
Entrepreneurs must endeavor to ensure their businesses are legally sound right
from its foundation. If the laws are not obeyed from the onset, the entrepreneur
may face a serious legal challenge in future which will affect his business
negatively.
34
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/2Xs-EcmIF4k
Audio
https://www.upcounsel.com/legal-issues-in-starting-a-business
35
Unit 5 Feasibility Analysis of New Ventures and New
Venture Financing
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to determine the viability of a business.
36
feasible and viable; despite the challenges one is likely to experience and
how to solve those challenges. The main concern and tool of feasibility analysis
are the necessary expenditure and the profit to be accomplished. This means it
is all about finance.
A new startup business requires some financial funding which comes in several
unique categories of financing options. Some universal and reliable funding
sources easily available to most entrepreneurs are through the entrepreneur’s
savings and personal bank soft loans, financial supports from friends and family
which may or may not involve interests. These are typically the first stage of
financing whereby the entrepreneur invests his own funds and raise funds from
friends and family. For more ambitious businesses, the next stage source is
usually the funding from angel investors. These are private investors who use
their own capital to finance businesses. After this is the next stage of financing
from institutional investors like venture capitalists companies who are specialists
in funding new businesses for profitable gains. Such venture capitalists also
sometimes provide any observable potential weakness in the business. These
include legal, marketing or operational deficiencies that may be threatening the
survival of the business. Sometimes angel investors and Venture capital
companies’ bargain cash exchanges for an equity stake in startup businesses
struggling to start operating.
• Assess if the Managing team have the personality generally known with
successful business persons. It is advisable to have self-assessment
first.One must have that personality suited, skilled and knowledgeable to
run abusiness and lead a group to success.
• Identify the challenges of startups and how one can overcome those
challenges,
• decide to continue with the business plan due to its viability and other
attractions or not. Sometime it takes asking oneself some bitter but
pertinent questions whether to scrap the idea if it is no longer as
37
originallyenvisaged or needs to be amended, redirected or altered
immensely.
•
In this wise, an ingenious suitable feasibility analysis will supply the historical
setting of the business, describe the products and services, the
account/financial profile/data, information on its operations as well
as management, marketing research and strategy, including legal necessities. In
actual fact, for such a serious research, all strata of the business are subjected
to feasibility analysis, depending on the type.
Self-Assessment Exercise
Feedback
1. Business can be operated successfully: A viable business idea is a
business which can be operated successfully and smoothly.
Maximum chances of Surviving in the competitive era: The business
idea should be able to start easily and germinate easily i.e, it should
have maximum chances to survive for long.
4.0 Conclusion
Before going into a venture or business, do your feasibility study. This will give
you idea of what you are likely to meet in the market.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/zBhOplgle-k
Audio
38
6.0 References/Further Reading
Landau, C., 2016. 7 Steps to Starting Your Own Business. Bplans [referenced
19 May 2016].
http://smallbusiness.chron.com/importance-feasibility-study-69080.html
https://www.entrepreneur.com/article/247575
http://www.ladec.fi/yrityksille
http://articles.bplans.com/sevensteps-to-starting-your-own-business/
39
MODULE 2 THEORIES OF GROWTH: AN OVERVIEW
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to apply appropriate theories in business
start up.
Business growth means expanding firm's products and services or expanding its
target markets, or some combination of each. Any increase in the volume of
activities of enterprises is a clear indication of growth.Businesses grow for a
number of reasons including to take advantage of a gap in the market, to gain a
competitive advantage over rivals, and to win increased market share.
40
entrepreneur gains more skills, knowledge and acquire additional resources, the
volume of activities of the business will expand. An entrepreneur may also
capitalize on changes in the environment to expand his operations in order to
exploit new opportunities.
However, there is no consensus on the number of stages, nor on how they are
related. moreover, the proposition that all businesses follow the set sequence is
not at all supported by the empirical evidence. The main issue is that companies
are started at one point and they need to be nurtured and managed to grow
bigger and bigger. There are companies around the world that survive decades
or centuries. The question is why do some businesses survive and grow while
others do not.
Researchers have shown that more than half of all businesses fail in less than
two years of commencement. Also, a large number of those businesses that
survive the first two years hardly grow. It is only few businesses that survive,
grow, regenerate and even create other businesses. Conventionally, people
ascribe businesses success or failures to fate/chance or certain environmental
conditions including family background. Even though one could not entirely rule
out the influence of changes in the environmental factors, the entrepreneur 's
positive attitude, discipline, skills, competences , resilience and experience are
real factors determining the transition of an enterprise form state up to a fully
grow or diversifies venture.
The question often asked is what motivates people commit to starting and
growing their businesses. Usually, entrepreneurs tend to make critical
investments, take acceptable risks and learn consistently because of their desire
to make money and enjoy all the rights and privileges that come along with
wealth. Other reasons include improved social status and well-being, greater
opportunity for philanthropy and community services, and gaining control over
41
their own destiny. Employees attribute increase in income/benefits and
advancement with businesses that grow. Government tends to favor business
growth because it lessens unemployment and social tension in addition to
raising more revenue from taxes. Thus, it is in the best interest of business
owners and other stakeholders in the society for businesses to grow and flourish
because growth tends to create social and economic value for all.
On general note, start ups and small businesses generate employments
opportunities. ILO (2007) estimated that about 70% of the people in sub-
Saharan Africa rely on small and informal establishment for their livelihood. For
example I'm South Africa, the share of employment provided by SMEs sector is
estimated at 60% and generated about 40% output (Lukacs, 2005). In
Botswana, small business contributed between 30-45% to the nations GDP and
accounted for more than 60% of wage employment. Thus, any increase in the
activities of small enterprises will lead to corresponding increase in employment.
Two main types of business growth are Internal growth and External growth
internal growth:
Internal growth is typically a steady process of expansion from within the firm.
The owners of the business contribute more capital, or plough back profits into
the business to acquire new assets, employ more staff, build additional plant or
deploy new technology. The main advantage of this approach is that the
business is able to leverage its assets and experience over time. The main
disadvantage is that it takes time, and rivals may be expanding and gaining
competitive advantage as well. NASCO Nigeria plc used this approach by
expanding into the production of detergents and carpets. Thus, through hard
work and careful planning owners can grow their businesses successfully.
42
External growth:
There are many reasons that help to explain the motivations for businesses to
grow
1. Profit motive:
• Businesses grow to achieve higher profits and provide better returns for
shareholders
• The stock market valuation of a firm is influenced by expectations of
future sales and profit streams so if a company achieves disappointing
growth figures, this can be reflected in a fall in the share price. This
opens up the risk of a hostile take-over and also makes it more expensive
for a quoted company to raise fresh capital by issuing new shares
2. Cost motive:
• Economies of scale the long run increase the productive capacity of the
business leading to lower average costs. They help to raise profit
margins at a given market price
4. Risk motive:
1. Growth might be motivated by a desire to diversify production and/or
sales so that falling sales in one market might be compensated by
stronger demand in another sector
2. This is known as achieving economies of scope and is a feature
of conglomerates
5. Managerial motives:
43
Behavioral theories of the firm predict that business expansion might be
accelerated by senior and middle managers whose objectives differ from major
shareholders.
Self-Assessment Exercise
How does the internal growth differ fom the External growth of a business?
Feedback
Internal growth is typically a steady process of expansion from within the
firm. The owners of the business contribute more capital, or plough back
profits into the business to acquire new assets, employ more staff, build
additional plant or deploy new technology. The main advantage of this
approach is that the business is able to leverage its assets and experience
over time.
4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/r612jJihClo
44
Audio
45
Unit 2 Challenges of Growth
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Growth is the goal of virtually every business owner, after all. But
what many entrepreneurs fail to take into account is the need to build
systems and have the right people in place to help clear the many
hurdles that emerge as a company expands from a few people to
dozens, to hundreds or even thousands. And if that expansion
process plays out too quickly, it can spell operational doom for even
the savviest entrepreneurs.
By the end of this unit, you will be able to solve basic challenges in business
start up.
This guide highlights the particular risks and mistakes that most commonly
affect growing businesses and outlines what you can do about them.
46
• Problem solving
• The right systems
• Skills and attitudes
• Welcoming change
Market research isn't something you do as a one-off when you launch your
business. Business conditions change continually, so your market research
should be continuous as well. Otherwise you run the risk of making business
decisions based on out-of-date information, which can lead to business failure.
The more you succeed, the more competitors notice - and react to - what you
are doing. A market-leading offer one day may be no better than average a few
months later.
Information sources
Published information can provide useful insights into market conditions and
trends. As a growing business, your own experience can be even more
valuable.You should be able to build up an in-depth picture of what customers
want, how they behave and which of your marketing approaches work best.
Taking the time to talk to key customers pays off. Your suppliers and other
business partners can be important sources of market information. You should
encourage your employees to share what they know about customers and the
market. Effective IT systems can also make it easier to share and analyze key
information such as customers' purchasing behaviour and preferences.You may
want to carry out extra research as well - for example, to test customer reaction
to a new product. You might do this yourself, or use a freelance researcher or
market research agency.
Planning Ahead
The plan that made sense for you a year ago isn't necessarily right for you now.
Market conditions continually change, so you need to revisit and update your
business plan regularly. See the page in this guide on keeping up with the
market.
As your business grows, your strategy needs to evolve to suit your changed
circumstances. For example, your focus is likely to change from winning new
47
customers to building profitable relationships and maximizing growth with
existing customers. Existing business relationships often have greater potential
for profit and can also provide reliable cash flow. Newer relationships may
increase turnover, but the profit margins may be lower, which may not be
sustainable. See the page in this guide on cash flow and financial management.
At the same time, every business needs to be alert to new opportunities. There
are obvious risks to relying solely on existing customers. Diversifying your
customer base spreads those risks.
Following the same business model, but bigger, is not the only route to growth.
There are other strategic options such as outsourcing or franchising that might
provide better growth opportunities.It's important not to assume that your current
success means that you will automatically be able to take advantage of these
opportunities. Every major move needs planning in the same way as a new
business launch.
Watch out for being too opportunistic - ask yourself whether new ideas suit your
strengths and your overall vision of where the business is going. Bear in mind
that every new development brings with it changing risks. It's worth regularly
reviewing the risks you face and developing contingency plans.
Good cash flow control is important for any business. For a growing business,
it's crucial - cash constraints can be the biggest factor limiting growth and
overtrading can be fatal. Making the best use of your finances should be a key
element in business planning and assessing new opportunities. With limited
resources, you may need to pass up promising opportunities if pursuing them
would mean starving your core business of essential funding.
Planning ahead helps you anticipate your financing needs and arrange suitable
funding. For many growing businesses, a key decision is whether to bring in
outside investors to provide the equity needed to underpin further expansion.
Problem Solving
New businesses often run in perpetual crisis mode. Every day brings new
challenges that urgently need resolving and management spends most of their
48
time troubleshooting.As your business grows, this approach simply doesn't
work. While a short-term crisis is always urgent, it may not matter nearly as
much as other things you could be doing. Spending your time soothing an
irritated customer might help protect that one relationship - but focusing instead
on recruiting the right salesperson could lay the foundations of substantial new
sales for years to come. As your business grows, you also need to be alert to
new problems and priorities.For example, your business might be increasingly at
risk unless you take steps to ensure your intellectual property is properly
protected.If you are focusing on individual marketing campaigns, you might
need to devote more resources to developing your brand.Identifying the key
drivers of growth is a good way of understanding what to prioritise.
Investing in the right systems is an investment that will pay off both short and
long term. You benefit every day from more effective operations. If you ever
decide to sell the business, demonstrating that you have well-run, efficient
systems will be an important part of proving its value.
Entrepreneurs are the driving force behind creating and growing new
businesses. All too often, they are also the people holding them back.The
49
abilities that can help you launch a business are not the same as those you
need to help it grow. It's vital not to fool yourself into valuing your own abilities
too highly. The chances are that you'll need training to learn the skills and
attitudes required by someone who is leading growth.
To grow your business, you need to learn to delegate properly, trusting your
management team and giving up day-to-day control of every detail. It's all too
easy to stifle creativity and motivation with excessive interference. As the
business becomes more complex, you also need to develop your time
management skills and learn to focus on what's really important.
As your business grows, you may need to bring in outsiders to help. You'll want
to delegate responsibility for particular areas to different specialists, or appoint a
non-executive director or two to strengthen your board. As you start tackling a
new opportunity, someone who has experience of that activity can be vital.
For many successful entrepreneurs, learning to listen to - and take - advice is
one of the hardest challenges they face. But it may also be essential if you are
going to make the most of your opportunities. Some entrepreneurs, recognizing
their own limitations, even appoint someone else to act as managing director or
chairman.
Accepting Change
• Changing to suppliers who can grow with you and meet your new
priorities. As your business grows, consistent quality and reliability may
be more important than simply getting the cheapest offer.
• Renegotiating contracts to take account of increased volume.
• Training and developing employees. Your own role will also evolve as the
business grows. See the page in this guide on skills and attitudes.
• Making sure that you keep up to date with new technologies.
You need to be fully committed to your strategy, even if it takes you out of your
comfort zone. This may involve hard decisions - for example making employees
redundant or switching business away from suppliers you have become friends
with. But unless you're prepared to do this, you risk putting your business at a
dangerous competitive disadvantage.
Discussion Forum
50
In your context, identify the basic challenges confronting business start up?
Paste your post in the discussion forum.
4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/wg120BbIBXQ
Audio
https://www.bellinghamwallace.co.nz/blog/the-top-four-challenges-to-
business-growth
www.juststartups.com/growth-development/57/challenges-of-business-
growth.html
51
Unit 3 Strategies for Growth (External Growth Strategies,
Franchising, Buy-In and Buy-Out)
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to demonstrate the skills of growing a
business.
Franchising has become an important growth strategy but there are few
guidelines for managing franchise systems ‘strategically”. This article develops a
strategic perspective on franchising by first discussing the growth and strategic
importance of franchising. The authors then show how the strategic concepts of
portfolio management, global strategy and network analysis can be used in
formulating and implementing franchise strategies. These perspectives are
combined into a framework for the use of practicing managers.
Franchising is the growth strategy of choice even when economies are going
through tough times. Why is this? In simple terms because it addresses the two
fundamental requirements for business growth:
52
The franchisees in turn operate their businesses under their guidance of the
franchisor that gets an ongoing royalty or fee. For more on what is franchising,
visit our site.
Franchises dot our landscape and meet thousands of our goods and service
needs every day. From frozen yoghurt, blow waves and guinea pigs to nose
rings, IVF or a mortgage, 453,000 people working in almost 83,000 franchised
outlets across Australia contribute about $154 billion per year to the economy,
according to IBIS world.
Franchising is a huge part of the global economy. Pepsi, Shell, BP, Ford,
General Motors and KFC have used franchising as a capital raising, HR,
management and marketing tool to span the planet.
The Classic Path: This is how most people think of franchise opportunities:
You buy a new franchise, find the location and build it out yourself. It's all new,
and it's all yours. You roll up your sleeves and plunge into your new business as
an owner/operator.
There is always a downside, of course (business imitating life?). With the classic
route, the biggest possible downside is the untried location. It can make or break
a retail business, and you may have a substantial sum of money riding on that
outcome. Second, your team is untried, so the training and opening support had
better be solid. The startup phase of the franchise at a new location will drain
your cash until the operation's growing revenue begins to carry the payroll,
inventory and other expenses; so plan carefully, and never go into a startup
franchise undercapitalized.
53
Where will you make your money? Maybe you can identify a struggling franchise
that needs a new shot of leadership and enthusiasm for the business. If you're
successful, you'll build a strong business out of a weak one, and reap the
financial benefits.
Buying an existing franchise business means that you're subject to the transfer
provisions of the existing franchise agreement, which can be very restrictive.
Many franchisors reserve the right of first refusal on all proposed transfers, so
it's possible that you can end up putting a big effort into a formal purchase offer
only to have the franchisor match it and take you out of the picture.
The franchise agreement might also impose a hefty transfer fee, often
expressed as a percentage (5 to 15 percent) of the purchase price. This will, of
course, fall on your shoulders, so include it in your calculations and your price
negotiations. You might also negotiate with the franchisor on the transfer fee,
especially if you're buying a troubled franchise. A new, enthusiastic owner may
be the answer to the franchisor's prayers; the company may be more than
willing to lower or eliminate the transfer fee altogether just to help you take over
the ailing franchise.
Your major risk: hidden problems of the previous owner's making. No one likes
surprises in a new venture, and these hidden problems will cost you money you
didn't plan on spending. They range from unhappy supply vendors to dishonest
employees to defective equipment--and they simply come with the territory. Add
an "unexpected problems" line to your opening budget, and plan for the
unexpected.
It's the involvement in franchise sales that draws many investors to master
franchise programs, and it is there that the law imposes the most restrictions. As
a third party participating in a franchise sale, the master franchisee will be
considered a "franchise broker" and, as such, must be included in the
company's Uniform Franchise Offering Circular, disclosing business experience
and litigation history. The franchisor must submit a "salesman disclosure" form
to most registration states. In a few states, a broker must independently register
with state authorities.
54
A master franchisee is the utility infielder of franchising. Success is measured by
the ability to manage, teach and recruit, while continuing to operate your own
franchise business successfully.
Be an Absentee Investor. For the right kind of business, with the right
employees running that business, it is entirely possible--though rare--to own a
franchise business and not be directly involved in its management. Rare, I think,
because it is hard enough to own and operate a successful small business even
when you're on the floor every day.
Second, the business must have sufficient margins to be profitable after the
expense of having a reliable manager. So many franchise businesses have
razor-thin margins that allow for the owner to take out not much more than a
modest salary. So the key question then becomes: What drops to the bottom
line for the owner?
55
Often, the fees paid for an affiliation program are considerably lower than those
of traditional franchise systems, reflecting the fact that the franchisee is an
experienced business owner and needs less training and less support than
someone new to the business.
Self-Assessment Exercises
1. List the essential business skills that are critical in growing a business.
2. Why is franchise important as a business growth strategy?
Feedback
4.0 Conclusion
56
For your business to sustain long-term growth, you must understand what sets it
apart from the competition. Identify why customers come to you for a product or
service. What makes you relevant, differentiated and credible.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/0b7b2FyXVEQ
Audio
https://invoice.ng/blog/how-to-develop-growth-strategies-for-small-businesses/
https://www.vanguardngr.com/2015/02/how-to-grow-small-businesses
57
Unit 4 Mergers and Acquisition
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to apply the techniques of mergers and
acquisition in growing a business.
From a legal point of view, a merger is a legal consolidation of two entities into
one entity, whereas an acquisition occurs when one entity takes ownership of
another entity's stock, equity interests or assets. From a commercial and
economic point of view, both types of transactions generally result in
the consolidation of assets and liabilities under one entity, and the distinction
between a "merger" and an "acquisition" is less clear. A transaction legally
structured as an acquisition may have the effect of placing one party's business
under the indirect ownership of the other party's shareholders, while a
transaction legally structured as a merger may give each party's shareholders
partial ownership and control of the combined enterprise. A deal may
be politely called a merger of equals if both CEOs agree that joining together is
in the best interest of both of their companies, while when the deal is unfriendly
58
(that is, when the management of the target company opposes the deal) it may
be regarded as an "acquisition".
Mergers: Sherman and Hart (2006) define Merger as "a combination of two or
more companies in which the assets and liabilities of the selling firm(s) are
absorbed by the buying firm. Although the buying firm may be a considerably
different organization after the merger, it retains its original identity." In other
words, in a merger one of the two existing companies merges its identity into
another existing company or one or more existing companies may form a new
company and merge their identities into a new company by transferring their
businesses and undertakings including all other assets and liabilities to the new
company (hereinafter referred to as the merged company). The shareholders of
the company (or companies, as the case may be) will have substantial
shareholding in the merged company. They will be allotted shares in the merged
company in exchange for the shares held by them in the merging company or
companies, as the case may be, according to the share exchange ratio
incorporated in the scheme of merger as approved by all or the prescribed
majority of the shareholders of the merging company or companies and the
merged company in their separate general meetings and sanctioned by the
court.
Horizontal Merger
Horizontal mergers occur when two companies sell similar products to the same
markets. The goal of a horizontal merger is to create a new, larger organization
59
with more market share. Because the merging companies' business operations
may be very similar, there may be opportunities to join certain operations, such
as manufacturing, and reduce costs.
Horizontal mergers raise three basic competitive problems. The first is the
elimination of competition between the merging firms, which, depending on their
size, could be significant. The second is that the unification of the merging firms'
operations might create substantial market power and might enable the merged
entity to raise prices by reducing output unilaterally. The third problem is that, by
increasing concentration in the relevant market, the transaction might strengthen
the ability of the market's remaining participants to coordinate their pricing and
output decisions. The fear is not that the entities will engage in secret
collaboration but that the reduction in the number of industry members will
enhance tacit coordination of behaviour.
Vertical Merger
A vertical merger joins two companies that may not compete with each other,
but exist in the same supply chain. Vertical mergers take two basic forms:
forward integration, by which a firm buys a customer, and backward integration,
by which a firm acquires a supplier. Replacing market exchanges with internal
transfers can offer at least two major benefits. First, the vertical merger
internalizes all transactions between a manufacturer and its supplier or dealer,
thus converting a potentially adversarial relationship into something more like a
partnership. Second, internalization can give management more effective ways
to monitor and improve performance. Vertical integration by merger does not
reduce the total number of economic entities operating at one level of the
market, but it might change patterns of industry behavior. Whether a forward or
backward integration, the newly acquired firm may decide to deal only with the
acquiring firm, thereby altering competition among the acquiring firm's suppliers,
customers, or competitors. Suppliers may lose a market for their goods; retail
outlets may be deprived of supplies; or competitors may find that both supplies
and outlets are blocked. These possibilities raise the concern that vertical
integration will foreclose competitors by limiting their access to sources of
supply or to customers. Vertical mergers also may be anticompetitive because
their entrenched market power may impede new businesses from entering the
market.
Conglomerate Mergers
60
effect on competition. There is no reduction or other change in the number of
firms in either the acquiring or acquired firm's market. Conglomerate mergers
can supply a market or "demand" for firms, thus giving entrepreneurs liquidity at
an open market price and with a key inducement to form new enterprises. The
threat of takeover might force existing managers to increase efficiency in
competitive markets. Conglomerate mergers also provide opportunities for firms
to reduce capital costs and overhead and to achieve other efficiencies.
Mergers and acquisitions are resorted to by the corporate entities due to more
than one reason. Some of the significant motives for mergers include the
following:
• Growth
• Diversification of risk
• Financial synergy
• Building Empire
M&A and restructuring commonly occur together, and can bleed into one
another, as well as other, unusual but less dramatic business decisions:
Self-Assessment Exercise
Feedback
Whereas
61
4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/VRW_FLjl-l4
Audio
https://www.researchgate.net/publication/258769054_A_Study_on_
Mergers_and_Acquisitions_-
_Its_impact_on_Management_and_Employees
https://www.pwc.nl/nl/assets/documents/pwc-mergers-
acquisitions.pdf
62
Module 3 Sources of Funds
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
All businesses need money. Where the money comes from is known as
‘sources of finance’. Now there are two different types of sources of finance:
internal (finance from inside the business) and external (finance from outside the
business). New businesses starting up need money to invest in long-term assets
such as buildings and equipment. They also need cash to purchase materials,
pay wages, and to pay the day-today- bills such as water and electricity
By the end of this unit, you will be able to synthesize the different sources of
fund to fund a business.
All businesses need money. Where the money comes from is known as
‘sources of finance’. Now there are two different types of sources of finance:
internal (finance from inside the business) and external (finance from outside the
business). New businesses starting up need money to invest in long-term assets
such as buildings and equipment. They also need cash to purchase materials,
pay wages, and to pay the day-today- bills such as water and electricity. In-
experienced entrepreneurs (or social entrepreneurs) often underestimate the
capital needed for the everyday running of the business. Generally, for every
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£1000 required to establish the business, another £1000 is needed for day-to-
day needs. This is why sources of finance is crucial for any business.
Sources of finance are equity, debt, debentures, retained earnings, term loans,
working capital loans, letter of credit, euro issue, venture funding etc. These
sources of funds are used in different situations.
Existing capital can be made to stretch further. The business may be able
to negotiate to pay its bills later or work at getting cash in earlier from
customers; the average small firm waits 75 days to be paid (i.e. two and a
half months); if that period of time could be halved; it would provide a
huge boost to cash flow.
If a business needs to generate more finance and can’t internally, they may
seek for external sources of finance. There are two types: loan capital and share
capital.
• Loan Capital. The most common way is through borrowing from a bank.
This can be in a form of an overdraft or loan. and is usually set over a
period of time. It could be short (2-3 years), medium (3-5 years) or long
term (5+ years). There will be an interest rate on the loan, either fixed or
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variable. The bank will demand collateral to provide security in case the
loan cannot be repaid.
Once the business has become a public limited company, it can float onto
the stock exchange where it can sell shares to the public.
Internal Sources
Reinvested Profit
• Profit can provide a return for investors in which investors plough back
into business to help it grow.
• Does not have associated costs.
• Does not have to be repaid unlike loans.
• No interest charges.– May be limited which will constrain rate at which
business expands.
Sale of Assets
• Sold to raise cash.
• Makes sense to dispose of underused assets.
• Finance development without extra borrowing.
• They can sale and lease it back.– Loses assets but has the use of the
cash.
External Sources
Bank Overdrafts
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The firm only needs to borrow only when and as much as it needs.
– Very expensive and bank can insist being repaid within 24 hours.
Trade Credit
Good way of boosting day-to-day finance.
– Other businesses may be reluctant to trade with the business if they do not get
paid in good time.
Venture Capital
Usually want to contribute to the running of the business – bring in new
experience and knowledge.
Key Terms
Collateral – an asset used as security for a loan. It can be sold by a
lender if the borrower fails to pay back a loan.
Over-trading – when a firm expands without adequate and appropriate
funding.
Public limited company (plc) – a company with limited liability, and shares
that are available to the public. It’s shares can be quoted on the stock
market.
Share capital – business finance that has no guarantee of repayment or
of annual income, but gains a share of the control of the business and its
potential profits.
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Stock market – a market for buying and selling company shares. It
supervises the issuing of shares by companies. It is also a second-hand
market for stocks and shares.
Venture capital – high-risk capital invested in a combination of loans and
shares, usually in a small, dynamic business.
Self-Assessment Exercise
Feedback
• Equity
• Sale of Stock,
• Sale of Fixed Assets,
• Retained Earnings
• Debt Collection.
Trade Credit
4.0 Conclusion
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5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/hJSDc-rB5Zs
Audio
https://www.askwillonline.com/2011/04/internal-and-external-sources-of.html
https://www.quora.com/What-are-the-sources-of-internal-and-external-financing
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Unit 2 Formal and Informal Sources
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Where and how you get fund to finance your business operation is very crucial
in determining success or failure of your business . It is critical to have fund
enough to sustain your business operations for at least first six months or one
year . After those six months you must have evaluated the performance of your
business and be able to forecast its future performance.
By the end of this unit, you will be able to distinguish between formal and
informal sources of funds.
Informal sources:
Once a new company has ascertained its funding requirements and has a
realistic business plan and budget in place, it can then start reviewing the
various sources of finance which might be available to it.
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Informal sources of finance are largely those which do not require written and
formalized agreements before such funding is acquired. They might include
some of the following.
Own Savings
Some avenues to gaining finance for a new business might include internal
sources such as an owner’s personal money.Where this is used in conjunction
with external financial help, this can demonstrate that the owner has some
confidence and commitment to the venture and might make it easier to gain
money from others.
Both the amounts and the proportion of the total funding requirement that is
needed which comes via personal means will be a factor in the levels of risk
others will perceive their investment has, should they decide to add their funds.
It is possible that by taking longer to pay creditors that the company might be
able to use such delays to fund its operations in part. The salient issues with
this type of financing are that it is a largely unsecured means of running a
business and relies heavily on the goodwill of a new supplier.
Many business start-ups find it difficult to gain extended credit terms from
suppliers who are naturally suspicious of their lack of trading history.In the
absence of any prior relationship with a particular supplier, a budget or cash flow
forecast which depicts that the success of the business is hinged on obtaining
extended credit terms might be viewed as improbably.
i. These include those small and scattered units which are largely outside
the control of the government.
ii. There is no organization which supervises the credit activities.
iii. They charge much higher rates of interest.
iv. Their main motive is profit-making.
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Example: Moneylenders, traders, employees, relatives and friends, etc.
Formal sources:
Self-Assessment Exercises
Feedback
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4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/UHRu6f25ga4
Audio
https://www.quora.com/What-are-the-sources-of-internal-and-
external-financing
http://www.entrepreneurs.or.tz/informal-sources-of-business-finance-for-entrepreneurs/
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Unit 3 Efficiency in the use of Resources
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to demonstrate proficiency skills in
resource management
The four tips mentioned below on how to manage resources will do wonders for
your corporation if implemented in the correct manner.
1. Plan to Plan
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via planning that you will be able to fully gauge the types and amount of
resources you will be requiring. Many projects fail because businesses end up
investing in too many or too few resources.
After figuring out what you will need, you can then plan their use by dividing the
project up into stages.
• Identify resources that are needed for completion of the project. Add to
the list any resources you will be requiring, whether it is in the first stage
of completion or the last.
• Analyze and put up an estimate of the time each resource needs and its
role in completion of a particular task.
• Go through the outline of the entire project and ensure that no resource is
left out.
• Finalize the list of resources and their details before the project can
officially begin. It is essential to have the list ready for everyone to see so
that the details are clear in everyone’s minds and the risks of confusion
are reduced.
One of the most effective ways of using resources and minimizing their use at
work when possible is by adopting a systematic approach. This can be achieved
by:
The use of technology goes a long way in speeding and easing up processes
significantly. Any feature of the project that can be completed using technology
should be automated. This will in turn minimize the risk of mistakes occurring
and free up manpower that can then be reallocated to other projects.Using
technology ensures efficient allocation of resources. There is less wastage and
more effective usage of resources. Technology will show you exactly what’s
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needed so you use specific resources, leaving others free to be utilized for the
completion of other projects.
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board has features like multiple views, time scale, resource requests and alerts,
and emails that set it aside from other resource management tools.
Financial management should become part of the key processes within your
business and be included in your ongoing planning.You might feel that your
finances are complicated and confusing but the following ten top tips should
help you to gain control of them.
A business plan will establish where you are and where you want to get to over
the next few years. It should detail how you will finance your business and its
activities, what money you will need and where it will come from - see write a
business plan: step-by-step.
You should regularly monitor the progress of your business. On a daily basis,
you should know how much money you have in the bank, how many sales
you’re making and your stock levels. You should also review your position
against the targets set in your business plan on a monthly basis - see cash flow
management.
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Businesses can run into major problems because of late customer payments. To
reduce the risk of late or non-payment, you should make your credit terms and
conditions obvious from the outset. You should also quickly issue invoices that
are clear and accurate. Using a computerized credit management system will
help you to keep track of customers’ accounts - read ensure customers pay you
on time.
Even the most profitable of companies can face difficulties if there isn’t enough
cash to cover day-to-day costs such as rent and wages. You should be aware of
the minimum your business needs to survive and ensure you do not go below
this
If your accounts are not kept up-to-date, you could risk losing money by failing
to keep up with late customer payments or not realizing when you have to pay
your suppliers. Using a good record keeping system will help you to track
expenses, debts and creditors, apply for additional funding and save time and
accountancy costs.
Failing to meet deadlines for filing tax returns and payments can incur fines and
interest. These are unnecessary costs that can be avoided with some forward-
planning. Keeping accurate records saves your business time and money and
you can be confident that you’re only paying the tax you owe. Therefore, it’s
important that you meet your obligations
Is your business operating at its most efficient? Saving energy and therefore
money can happen by implementing changes in behaviour and using existing
equipment more efficiently. It’s one of the easiest ways to cut costs. Areas to
look at in an average office include heating, lighting, office equipment and air
conditioning
8. Control stock
Efficient stock control ensures you have the right amount of stock available at
the right time so that your capital is not tied up unnecessarily. You should put
systems in place to keep track of stock levels – taking control of this will allow
you to free up cash, while also having the right amount of stock available.
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It is essential that you choose the right type of finance for your business – each
type of finance is designed to meet different needs. Smaller businesses usually
rely more on business overdrafts and personal funding but this might not be the
best kind of funding for your company.
.
10. Tackle problems when they arise
Self-Assessment Exercise
Feedback
4.0 Conclusion
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able to get any value out of your investments unless you know how to make the
most out of them.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/kgLxI6Ey2ug
Audio
Leus, R., & Herroelen, W. (2004). Stability and resource allocation in project
planning. IIE Transactions
https://en.wikipedia.org/wiki/Resource_efficiency
https://www.leankor.com/10-quick-tips-effective-resource-management
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MODULE 4 MARKETING
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
5.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
The marketing concept is the philosophy that firms should analyze the needs of
their customers and then make decisions to satisfy those needs, better than the
competition. Today most firms have adopted the marketing concept, but this has
not always been the case.
By the end of this unit, you will be able to analyse the different forms of
marketing in choosing a marketing technique for a business.
The marketing concept is the philosophy that firms should analyze the needs of
their customers and then make decisions to satisfy those needs, better than the
competition. Today most firms have adopted the marketing concept, but this
has not always been the case.
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Self-Assessment Exercise
Feedback
The following are examples of what your overall business aim might be,
and marketing strategies that you could use to achieve it:
• Increase sales.
• Bring in new customer
• Get existing customers to buy more.
• Introduce a new product or service.
• Increase market share.
• Better establish your brand.
4.0 Conclusion
An effective marketing strategy for a small business or startup follows the same
basic marketing cycle as a big business, but for the small business marketer,
the similarities stop there. Budgets, staffing, creative approaches, and
communication techniques vary hugely between an international mega-marketer
like, say, Coca-Cola, and a comparatively micro-budget marketer like, you.
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Creating a successful new business is a tough job, especially when a new
company has to compete against large, well-established businesses
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/rKqI6li3thY
Audio
https://www.investorsinpeople.com/5-key-differences-between-small-and-large-
organisations
https://www.dummies.com/business/marketing/how-small-business-marketing-
differs-f.
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Unit 2 Marketing Mix
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
1.0 Conclusion
5.0 Summary
2.0 References/Further Reading
1.0 Introduction
The marketing mix is a foundation model in marketing. The marketing mix has
been defined as the "set of marketing tools that the firm uses to pursue its
marketing objectives in the target". Thus the marketing mix refers to four broad
levels of marketing decision, namely: product, price, promotion, and place.
Wikipedia
By the end of this unit, you will be able to evaluate the need of marketing mix in
business growth.
Price: refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply - demand and
a host of other direct and indirect factors. There can be several types of pricing
strategies, each tied in with an overall business plan. Pricing can also be used a
demarcation, to differentiate and enhance the image of a product.
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Product: refers to the item actually being sold. The product must deliver a
minimum level of performance; otherwise even the best work on the other
elements of the marketing mix won't do any good.
Place: refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or 'place' strategy. Retailers pay a premium for the right location. In
fact, the mantra of a successful retail business is 'location, location, location'.
Promotion: this refers to all the activities undertaken to make the product or
service known to the user and trade. This can include advertising, word of
mouth, press reports, incentives, commissions and awards to the trade. It can
also include consumer schemes, direct marketing, contests and prizes.
All the elements of the marketing mix influence each other. They make up the
business plan for a company and handled right, can give it great success. But
handled wrong and the business could take years to recover. The marketing mix
needs a lot of understanding, market research and consultation with several
people, from users to trade to manufacturing and several others.
Self-Assessment Exercise
Feedback
The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
However, nowadays, the marketing mix increasingly includes several other Ps
like Packaging, Positioning, People and even Politics as vital mix elements. All
the elements of the marketing mix influence each other. They make up the
business plan for a company and handled right, can give it great success.
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4.0 Conclusion
Marketing your business is about how you position it to satisfy your market’s
needs.The marketing mix is the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical
marketing mix - Price, Product, Promotion and Place. In the contemporary
corporate organisations, the marketing mix has embraced other elements of Ps
like Packaging, Positioning, People and even Politics as determinant factors of
success.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/jxyZf80bWJs
Audio
https://www.extension.purdue.edu/extmedia/ec/ec-730.pdf
http://www.netmba.com/marketing/mix.
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Unit 3 Modern Marketing Tools
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
1.0 Conclusion
5.0 Summary
2.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to identify different marketing tools for
start up.
Here are the five essential technology categories for building, executing, and
analyzing your modern marketing strategy.
Visibility into opportunities and customers (and how they became opportunities
or customers) is critical for evaluating your marketing efforts. You do this with a
CRM, which helps organizations track and predict buyer behaviors, manage the
sales process, and close deals more effectively. For the modern marketer, these
tools link your marketing efforts to revenue generation.
Also, this is where sales teams live. Your CRM is an important tool for
communicating with sales reps and providing them with the content and tools
they need to get signatures.
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engagement, interact with your target audience in real-time, participate in
important conversations happening online, and share important content assets
strategically. Social marketing platforms also analyze these efforts, helping your
team evolve and hone social initiatives moving forward.
4. Web Platform
For the most part, your website is the hub through which all leads filter. This isn’t
a hard-and-fast rule, some opportunities are event attendees or direct referrals.
But pretty much everyone else funnels through your website during the
purchase process. Your website houses everything from landing pages, content
assets, event registration pages, blogs, resources, pricing details, etc.
In the new buyer’s journey, prospects do their own research. They search for
answers to their questions, and research topics and tools long before they want
to speak to a sales rep. Most of this process happens online. And when people
search for your company or subjects relevant to your business, you want to
make sure they find your website.
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as the analysis of those efforts. It tells you exactly which content assets are
driving opportunities and revenue for your organization.
These five tools are the essentials. Each focuses on a different, yet key piece of
a modern marketing strategy. And when they’re all in sync (as they should be),
they maximize the value of your investment. Of course, there are many add-ons
that can make content more compelling, your website better optimized, your
data more accurate, etc. But when it comes down to it, these five tools make up
the must-have technology mix for your marketing organization.
Self-Assessment Exercise
Feedback
4.0 Conclusion
These marketing tools are the essentials for today’s globa business. Each
focuses on a different, yet key piece of a modern marketing strategy. And when
they’re all in synchronized,they maximize the value of your the entrepreneur’s
investment. Other attachments that can make content more compelling include
your website. these tools are must-have technology mix for your marketing
organization.
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5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/Uq3WsKUudeE
Audio
https://marketeer.kapost.com/essential-marketing-tools/
https://www.marketingprofs.com/newsletters/marketing
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MODULE 5 ETHICS AND SOCIAL RESPONSIBILITY
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
5.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Every company should have their own moral principles and guidelines.
Following business ethics has more benefits than you think. It will help you to
keep and attract employees, customers, and investors.
By the end of this unit, you will be able to apply ethical skills in managing a
business.
90
Self-Assessment Exercise
Feedback
The reason why it is important for managers to behave ethically is
because: Managers are responsible for managing in a way that
gives a highest profit.Present time if you are unethical you end up
on the news.
4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/SLOWBpOz78k
Audio
https://www.keka.com/importance-of-business-ethics/
91
Unit 2 Ethical Behaviour and Practices in Nigeria
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Business ethics, also known as corporate ethics, are the moral code of conduct
which guides company officials to respond to the needs of the employees as
well as the community from which they get their resources. Without ethics, most
of the products in the market today would be half-baked of sham. When ethics
are adhered to by a company, the needs of the customers are respected.
By the end of this unit, you will be able to manage customers from different ethic
groups in Nigeria to enhace business growth.
The decision to behave ethically is a moral one; employees must decide what
they think is the right course of action. This may involve rejecting the route that
would lead to the biggest short-term profit. Ethical behaviour and corporate
social responsibility can bring significant benefits to a business. For example,
they may:
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Treating stakeholders fairly is seen as an essential part of the company's
success, as described here: 'A creative and well managed corporate and social
responsibility programme is in the best interests of all our stakeholders - not just
our consumers - but also our shareowners, employees, customers, suppliers
and other business partners who work together with us. *'
Ensuring that employees understand the company's corporate values is
achieved by the statement of 'Our Business Principles' which makes clear the
behaviour it seeks from employees.
There are various branches of ethics, and one branch is ‘business ethics’. This
type of ethics is focused on how business ought to behave. The type of
business ethics that looks at how businesses should act within a society is
sometimes referred to as ‘corporate social responsibility’.
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environment. Investors like putting their money where they are sure it
is safe.
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13. Ethics reduces business risks. As trust and loyalty are built on ethics,
chances of losing potential customers, suppliers, employees and even
the company itself are minimal.
14. It improves a company’s bottom line (last line that shows profit or
loss). The bottom line of your business will increase since costs and
risks are reduced.
15. Ethics increases business profits. The decrease in risks and costs
mean that the output is likely to be higher than the input hence the
company makes a profit.
17. Good ethics in a business boosts the morale of the employees. Good
business ethics involves rewarding your employees. When an
employee is rewarded, he/she works harder leading to more profits.
21. Ethics lead to long-term gains. A company that values ethics believes
in small, but long-term benefits rather than big, but short-term returns.
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23. Ethics offers extra asset protection. Employees who abide by the
business ethics are in a position to respect and protect the business’s
assets. For instance, they will not make long personal calls using the
business line.
25. Good business ethics is an end in itself. Both inside and outside of
business, having good ethics is an end in itself, and something that
we can derive satisfaction from in its own right. So, if you want
employees, vendors and consumers to feel satisfied, then running an
ethical business is very important. That way, when people go to work
they will feel a sense of satisfaction at doing something that is morally
sound. And, when people buy your products or services, they can do
so safe in the knowledge that what they are doing is ethical.
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To behave ethically is to behave in a manner that is consistent with what is
generally considered to be right or moral. Ethical behaviour is the bedrock of
mutual trust. Ultimately, the quest for organizational transformation must begin
with a personal commitment within each individual to pursue moral excellence.
Abraham Lincoln described as the trees and reputation as the shadow. Your
Character is what you really are; your reputation is what people think of you.
Reputation is a function of perception. ……Abraham Lincoln
In the Soviet block, ethics took a different dimension. Marxism and socialism
were used to solidify the linkage between work as an end in itself and the overall
development of the society. The Japanese have work ethics that emphasizes
excellence ramifications. Thus, business ethics in various places and situation
derived from religious doctrine, political and economic philosophy, cultural
norms and values.
The Islamic countries like Iran, Saudi Arabia and Iraq have fundamental Islamic
ethics guiding their business interactions.Nigerians like Japanese have customs
and moral values that could be used as building blocks in developing business
ethical values. But Nigeria has had vagaries of political and economic instability,
and leadership patterns that had robbed off the application of these values in
business operations. Also, among the ruling elites, lack of ethics is leading to
failure and collapse of multi-million dollar public corporations enterprises and
contracts.
Most of us would agree that it is ethics in practice that makes sense; just having
it carefully drafted and redrafted in books here may not serve the purpose. Of
course all of us want businesses to be fair, clean and beneficial to the society.
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For that to happen, organizations need to abide by ethics or rule of law, engage
themselves in fair practices and competition; all of which will benefit the
consumer, the society and organization.
Primarily it is the individual, the consumer, the employee or the human social
unit of the society who benefits from ethics. In addition ethics is important
because of the following:
1. Satisfying Basic Human Needs: Being fair, honest and ethical is one the
basic human needs. Every employee desires to be such himself and to
work for an organization that is fair and ethical in its practices.
4. Improving Decision Making: A man’s destiny is the sum total of all the
decisions that he/she takes in course of his life. The same holds true for
organizations. Decisions are driven by values. For example an
organization that does not value competition will be fierce in its
operations aiming to wipe out its competitors and establish a monopoly in
the market.
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Ethics tries to create a sense of right and wrong in the organizations and often
when the law fails, it is the ethics that may stop organizations from harming the
society or environment.
Self-Assessment Exercise
Feedback
• Ethics lays the strategic decision-making.
• They increase employee retention. .
• An ethical business attracts investors.
• Ethics minimizes costs.
• Ethical practices help in building and maintaining reputation. !
• An ethically oriented company is bound to avoid fines. .
• Ethics in a business attracts more employees. Good Business
ethics is the key to enhancing productivity
4.0 Conclusion
Ethics tries to create a sense of right and wrong in the organizations and often
when the law fails, it is the ethics that may stop organizations from harming the
society or environment.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/GTYoEpoXx14
Audio
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Unit 3 Community Development Projects/Walfare
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to evaluate community development
projects inline with business creation and growth.
Community Development
Comparing models
Social services Community development
model
Central focus delivery of services identification of issues,
populations affected
role of there are incentives to success depends on broad-
participation incomplete based, inclusive strategies–
use/knowledge of recipients of assistance vs
available programs owners of process
(e.g., for state
budgets)
flexibility resistant to change dynamic, fluid-
(why?) projects/initiatives depend
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Social services Community development
model
on support of constituents
Potential for Doesn’t challenge Potential to address causes,
effecting inequalities-inherently not symptoms (but can do
social change designed for minimal both)-address structural
comfort of recipients factors
Bureaucratic Structure is Great flexibility in how to
constraints predetermined-if approach a problem (but
problem doesn’t fit, often difficulty reaching
need a new program consensus); non-profit
(e.g., water billing organizations predominate
.low-income heating
assistance program)
personnel may be understaffed, often relies heavily on
but includes fixed volunteer staff–less career-
budgets for personnel oriented opportunities
(struggling non-profits)
Certainty of Funding more certain, Funding may vary, sources
funding but still subject to are less certain than public
political circumstances services model, many
community development
organizations must devote
scarce resources to looking
for money to keep active
Functions
Social safety net
Social conscience
Advocacy
Activism
Community participation
Address quality of life issues
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Social Capital
social organization(s)
‘bank of favors’
mutual aid
Self-Assessment Exercise
Feedback
Improvement of the Quality of Life of the Extremely Poor and of the
Vulnerable Communities. Two strategic objectives are set out to
contribute to achieve the goal which are –
4.0 Conclusion
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
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Video https://youtu.be/DvPS4LecYtk
Audio
https://cles.org.uk/wp-content/uploads/2017/10/ced_report_2017.pdf
https://en.wikipedia.org/wiki/Community_economic_development
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Module 6: New Opportunities for Expansion
Unit 1 E-Commerce
Unit 2 E-Business
Unit 3 E-Trade
Unit 1 E-Commerce
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
5.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to create and manage an e-commerce.
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Online marketing
Online advertising
Online sales
Product delivery
Product service
Online billing
Online payments
The e-commerce concept relates to business or financial transactions that
facilitate electronic payments of items purchased from online stores and service
vendors. E-commerce covers a broad range of business activities, from digital
content used for online consumption to conventional orders of online
merchandise. Online banking is another form of e-commerce. E-commerce
transactions are conducted between businesses, businesses and consumers,
businesses and government, businesses and employees and consumers and
businesses.
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Types of E- Commerce (according to Bloomia.com)
Self-Assessment Exercise
Feedback
If you're thinking about starting an eCommerce business and selling products
online, use this checklist to do it.
106
4.0 Conclusion
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/FrVob1_p8EU
Audio
https://www.sqa.org.uk/e-learning/ECIntro01CD/page_04.htm
https://www.quora.com/What-are-B2B-B2C-C2B-and-C2C
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Unit 2 E-Business
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to create and manage an e-business.
E-business can comprise a range of functions and services, ranging from the
development of intranets and extranets to e-services, the provision of services
and tasks over the internet by application service providers. Today, as major
corporations continuously rethink their businesses in terms of the internet --
specifically, its availability, wide reach and ever-changing capabilities -- they are
conducting e-business to buy parts and supplies from other companies,
collaborate on sales promotions and conduct joint research. As e-commerce has
accelerated, stringent security protocols and tools, including encryption and
digital certificates, were adopted to protect against hackers, fraud and theft.
Nonetheless, security and data privacy remain big concerns for companies and
individuals conducting business on the internet. With the security built into
browsers and with digital certificates now available for individuals and
companies from businesses such as Verisign, a certificate issuer, some of the
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early concern about the security of business transaction on the web has abated,
and e-business, by whatever name, is accelerating.
There are marketing risks when it comes to e-business as well. All types of
businesses rely on effective marketing to drive growth and sales, but online
marketing techniques are much different from traditional, offline ones. Without
an effective marketing campaign specifically tailored to promote e-business, an
organization creates huge financial risk by investing in marketing resources that
do not drive consumer traffic to the transaction websites. E-businesses are also
vulnerable to systematic risk that influences the entire online market segment.
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For example, the dot-com crash of 2000-2001 began after several e-business
startups went public and were purchased by other e-businesses. These e-
businesses had little cash flow, and many valued growth over financial stability.
This created an unsustainable economic bubble that ultimately put many of
these companies out of business when it burst.
Self-Assessment Exercise
What is E-Business?
Feedback
E-business (electronic business) is the conduct of business processes
on the internet. These e-business processes include buying and selling
products, supplies and services; servicing customers; processing
payments; managing production control; collaborating with business
partners; sharing information; running automated employee services;
recruiting; and more.
4.0 Conclusion
Most businesses today do some level of marketing, sales and customer service
via the internet. Having part or all of your business operations online is an e-
Business model. When a business is selling products online, it is an e-
Commerce business model.
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wider range of business processes by including aspects such as supply chain
management (SCM), electronic order processing and customer relationship
management (CRM) designed to help the company operate more effectively and
efficiently.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/0CjIYDScIjI
Audio
https://searchcio.techtarget.com/definition/e-business
https://en.wikipedia.org/wiki/Electronic_business
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Unit 3 E-Trade
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
Trading in the financial markets can broadly be split into two groups:
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"dealers", who act as middle-men between the clients and the B2B
markets.While the majority of retail trading in the United States happens over
the Internet, retail trading volumes are dwarfed by institutional, inter-dealer and
exchange trading. However, in developing economies, especially in Asia, retail
trading constitutes a significant portion of overall trading volume.
For instruments which are not exchange-traded (e.g. US treasury bonds), the
inter-dealer market substitutes for the exchange. This is where dealers trade
directly with one another or through inter-dealer brokers (i.e. companies like GFI
Group, ICAP and BGC Partners. They acted as middle-men between dealers
such as investment banks). This type of trading traditionally took place over the
phone but brokers moved to offering electronic trading services instead.
Similarly, B2C trading traditionally happened over the phone and, while some
still does, more brokers are allowing their clients to place orders using electronic
systems. Many retail (or "discount") brokers (e.g. Charles Schwab, E-Trade)
went online during the late 1990s and most retail stock-broking probably takes
place over the web now.
Self-Assessment Exercise
Feedback
Electronic trading, sometimes called e-trading or paperless trading is a
method of trading securities, foreign exchange or financial derivatives
electronically
4.0 Conclusion
In developed world, majority of retail trading happens over the Internet,in
developing economies, especially in Asia and Africa, retail trading constitutes a
significant portion of overall trading volumes.
Electronic trading is rapidly replacing human trading in global securities markets.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/VtjMBLyRx2o
Audio
6.0 References/Further Reading
https://us.etrade.com/planning/new-to-investing
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Module 7 Managing Transition: From Start up to Growth
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to demonstrate personal discipline that is
required to manage a business from start-up to growth.
Success just happens. We all want to get somewhere in life and in business.
We have goals and dreams. But why is it that only some people are able to get
there? Is it because of luck, circumstance, or talent? Depending on the person it
could be a combination of these elements. The one common theme that does
come up when conversing with successful people is discipline.Whether it’s a
business person growing an organization or an athlete wanting to medal in
competition, discipline is the one element they all have in common. Discipline is
a fundamental element in obtaining goals, dreams and desires. Good to great
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Discipline is what keeps us going when times are tough and not going our way.
It makes the bad times easier to get through. We must constantly practice,
repeat, and believe in our purpose.
Discipline sometimes requires some sacrifice to reach the end goal. Having
discipline means being very structured in our approach to reach our goal. An
athlete will have a training schedule, competition, diet plan. They will follow this
until they reach their ultimate goal. Because they know through disciplined
practice they can hone their skills to be the best they can be, ultimately reaching
their goal.
It is important for business owners to stay motivated and care for personal
needs. Creating new personal and professional challenges can help an
entrepreneur maintain his motivation. Increasing professional knowledge with
industry-specific trainings and seminar can help him stay current and implement
new practices.
2. Teamwork
3. Holistic Bookkeeping
All business owners should have a vision, or a big picture, when it comes to an
entrepreneurial venture. Creating a vision or objective helps provide a focus and
a framework on which to base important business decisions. When developing a
vision, an entrepreneur should consider the value he hopes the business will
provide in order to formulate a corresponding business plan. Developing a
business plan should help a business owner limit unforeseen circumstances so
she is ready for any unplanned events.
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5. Marketing and Customer Retention
Self-Assessment Exercise
What can you say is discipline in terms of operating and growing a business?
Feedback
Business disciplines refer to the practices that help a business grow. By
putting a business practice into place, an entrepreneur can help ensure
success and growth over the long term by creating a plan before the
launch of an idea
4.0 Conclusion
A formal business transition plan puts the goals, priorities and strategies in place
for a successful transition. Without a clearly defined plan, business owners are
leaving their personal and financial future to chance
Discipline is a fundamental element in obtaining goals, dreams and desires
Discipline sometimes requires some sacrifice to reach the end goal. Having
discipline means being very structured in our approach to reach our goal.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/HarOXcE8mo4
Audio
https://knowhownonprofit.org/your-team/people-management-
skills/change/tools/transition
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Unit 2 Learning
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to establish a learning process that will
enhance the growth of a business from start up.
The key with any growth strategy is to be deliberate. Figure out the rate-limiting
step in your growth, and pour as much fuel on the fire as possible. But for this to
be beneficial, you need to take the following steps:
For your business to sustain long-term growth, you must understand what sets it
apart from the competition. Identify why customers come to you for a product or
service. What makes you relevant, differentiated and credible? Use your answer
to explain to other consumers why they should do business with you.
For example, some companies compete on “authority” -- Whole Foods Market is
the definitive place to buy healthy, organic foods. Others, such as Walmart,
compete on price. Figure out what special benefit only you can provide, and
forget everything else. If you stray from this proposition, you’ll only run the risk of
devaluing your business.
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2. Identify your ideal customer.
You got into business to solve a problem for a certain audience. Who is that
audience? Is that audience your ideal customer? If not, who are you serving?
Nail down your ideal customer, and revert back to this audience as you adjust
business to stimulate growth.
What are your current revenue streams? What revenue streams could you add
to make your business more profitable? Once you identify the potential for new
revenue streams, ask yourself if they’re sustainable in the long run. Some great
ideas or cool products don’t necessarily have revenue streams attached. Be
careful to isolate and understand the difference.
7. Invest in talent.
Your employees have direct contact with your customers, so you need to hire
people who are motivated and inspired by your company’s value proposition. Be
cheap with office furniture, marketing budgets and holiday parties. Hire few
employees, but pay them a ton. The best ones will usually stick around if you
need to cut back their compensation during a slow period.
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Developing a growth strategy isn’t a one-size-fits-all process. In fact, due to
changing market conditions, making strategic decisions based on someone
else’s successes would be foolish. That’s not to say that you can’t learn from
another company, but blindly implementing a cookie-cutter plan won’t create
sustainable growth.
You need to adapt your plan to smooth out your business’s inefficiencies, refine
its strengths and better suit your customers -- who could be completely different
than those from a vague, one-size-fits-all strategy.
Your company’s data should lend itself to all your strategic decisions.
Specifically, you can use the data from your key indicators and revenue streams
to create a personalized growth plan. That way, you’ll better understand your
business and your customers’ nuances, which will naturally lead to growth.A
one-size-fits-all strategy implies vague indicators. But a specific plan is a
successful plan. When you tailor your growth strategy to your business and
customers, you’ll keep your customers happy and fulfill their wants and needs,
which will keep them coming back.
Self-Assessment Exercise
Feedback
Growth Strategy aims at winning larger market share, even at the
expense of short-term earnings.
4.0 Conclusion
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5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/fb80uydS-4Q
Audio
https://knowhownonprofit.org/your-team/people-management-
skills/change/tools/transition
www.jblearning.com/samples/0763749109/49109_CH04_056_072.pdf
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Unit 3 Decision Making
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you will be able to analyse diiferent decision taking
process in business transition that will enhance busienss growth.
There are many ways of classifying decision in an organization but the following
types of decisions are important ones:
Tactical decisions are those which a manager makes over and over again
adhering to certain established rules, policies and procedures. They are of
repetitive nature and related to general functioning. Authority for taking tactical
decisions is usually delegated to lower levels in the organization.
Strategic decisions on the other hand are relatively more difficult. They influence
the future of the business and involve the entire organization. Decisions
pertaining to objective of the business, capital expenditure, plant layout,
production etc., are examples of strategic decisions.
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programmed decisions are basically of a routine type for which systematic
procedures have been devised so that the problem may not be treated as a
unique case each time it crops up.
Prof. Katona has classified decisions as basic and routine. Basic decision are
those which require a good deal of deliberation and are of crucial importance.
These decisions require the formulation of new norms through deliberate
thought provoking process. Examples of basic decisions are plant location,
product diversification, selecting channels of distribution etc.
Routine decisions are of repetitive nature and hence, require relatively little
consideration. It may be seen that basic decisions generally relate to strategic
aspects, while routine decisions are related to tactical aspects of a organization.
Off-the-cuff decisions involve "shooting from the hip". These decisions can be
taken easily and may be directed towards the purposes of the enterprise. On the
other hand, planned decisions are linked to the objectives of organization. They
are based on facts and involve the scientific process in problem solving.
Policy decisions are those which are taken by top management and which are of
a fundamental character affecting the entire business. Operating decisions are
those which are taken by lower management for the purpose of executing policy
decisions. Operating decisions relate mostly to the decision marker's own work
and behaviour while policy decisions influence work or behaviour pattern of
subordinates.
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7. Policy, Administrative and Executive Decisions
Ernest Dale (born in Hamburg, Germany and died at the age of 79) has
classified decisions in business organization as under.
Executive decisions are those which are made at the point where the work is
carried out. Distinguishing between these three types of decisions Dale writes,
"policy decisions set forth goals and general courses of action, administrative
decisions determine the means to be used and executive decisions are those
made on a day-to-day basis as particular cases come up"
4.0 Conclusion
• Personal decision making has the decisions that determine who we are
as individuals and the outcomes we create for ourselves and others with
which we have relationships. This category includes what is sometimes
referred to as life decisions.
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5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video https://youtu.be/Qk4Fnwg-ZJI
Audio
https://www.decision-making-solutions.com/types_of_decision_making.html
https://www.mbaofficial.com/mba.../decision.../explain-the-different-types-of-decision.
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Unit 4 Control
Contents
1.0 Introduction
2.0 Intended Learning Outcome (ILO)
3.0 Main Content
4.0 Conclusion
5.0 Summary
6.0 References/Further Reading
1.0 Introduction
By the end of this unit, you would have managed the different stages in
business growth.
During the growth of a small business, a company will go through the stages of
the business life cycle and encounter different challenges that require different
financing sources. For example, the business will require a different strategy
when it comes to market penetration, business development, and retaining
market share. As the business matures, operations and priorities will change
therefore requiring business financing to also change as well.
Below are the five stages of business growth every company goes through:
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• Development stage. If you decide your business idea is worth
developing, the next step is to put together a business plan.
• Start-up stage.
• Growth stage
• Expansion stage.
• Maturity stage.
The development or seed stage is the beginning of the business lifecycle. This
is when your brilliant idea is merely just a thought and will require a round of
testing in its initial stage. In testing your business idea, you may conduct
research regarding the industry, gather feedbacks from your friends, family,
colleagues, or other industry specialists. This is when you are determining
whether the business idea that you had is worth pursuing and if so it will be the
birth of your new business.
Challenges
2. Startup Stage
You’ve decided that your business idea is worth pursuing and have now made
your business entity legal. In this stage, you’ve finished developing the products
or services that your business has to offer and will begin marketing and selling.
During this stage, you will be tweaking your products or services according to
the initial feedback from your first paying customers and market demand. You
126
will need to learn and adjust your business model to ensure profitability and that
it meets your customer’s expectations. By adjusting your business model, you’ll
be able to set your business on the right track.
Challenges
3. Growth/Survival Stage
Your business has endured through the initial stages of the business lifecycle
and is currently in its growth or survival stage. The business is consistently
generating revenue and adding new customers. These recurring revenue will
help pay for your operating expenses and open up new business opportunities.
Currently, your business could be operating at a net loss or maintaining a
healthy profit, but there could be some competition. This is also when you need
to fine tune your business model and implement proven methodologies, sales
model, marketing model, and operations model before expanding your venture
for the mass market.
Challenges
Your business has been a thriving company and established its presence in the
industry. You have now reached the stage in which your business will expand
and spread its roots into new markets and distribution channels. In order to start
capitalizing on the success of your business, you will need to capture a larger
market share and find new revenue. Therefore your business will experience a
rapid growth in revenue and cash flow. The rapid growth stage takes advantage
from the proven sales model, marketing model, and operations model set forth
from your growth/survival stage.
Challenges
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• Accounting Management
• Moving into New Markets
• Adding New Products/Services
• Expanding Existing Business
5. Maturity Stage
After a successful expansion, your business is on top of its industry and has
matured. At the final stage of the business lifecycle, your business has a
dominating presence in its market. Your business could still be growing but not
at the substantial rate as you’ve previous experienced. Your current option is to
decide to take a step back towards the expansion stage or to think of a possible
exit strategy.
Challenges
At each stage, your business will rely on a financial source to help overcome the
challenges your business faces. This is especially important to have an
accounting management software in place so that you will have an accurate
reflection of your current business finances. Having an accounting software in
place will help you understand where your business is on the current business
lifecycle and the details will allow you foresee upcoming challenges and to make
better business decisions.
Discussion Forum
Identify and interview two successful entrepreneurs on their business life cycle.
Compare your findings with the five main stages of business life cycle and
growth as discussed in this unit. Post your discussion on the discussion forum.
The development or seed stage is the beginning of the business lifecycle. This
is when your brilliant idea is merely just a thought and will require a round of
testing in its initial stage. In testing your business idea, you may conduct
128
research regarding the industry, gather feedbacks from your friends, family,
colleagues, or other industry specialists. This is when you are determining
whether the business idea that you had is worth pursuing and if so it will be the
birth of your new business.
Challenges
2. Startup Stage
You’ve decided that your business idea is worth pursuing and have now made
your business entity legal. In this stage, you’ve finished developing the products
or services that your business has to offer and will begin marketing and selling.
During this stage, you will be tweaking your products or services according to
the initial feedback from your first paying customers and market demand. You
will need to learn and adjust your business model to ensure profitability and that
it meets your customer’s expectations. By adjusting your business model, you’ll
be able to set your business on the right track.
Challenges
3. Growth/Survival Stage
Your business has endured through the initial stages of the business lifecycle
and is currently in its growth or survival stage. The business is consistently
generating revenue and adding new customers. These recurring revenue will
help pay for your operating expenses and open up new business opportunities.
Currently, your business could be operating at a net loss or maintaining a
healthy profit, but there could be some competition. This is also when you need
to fine tune your business model and implement proven methodologies, sales
model, marketing model, and operations model before expanding your venture
for the mass market.
Challenges
129
Dealing with Increasing Revenue
Dealing with Increasing Customers
Accounting Management
Effective Management
Market Competition
Your business has been a thriving company and established its presence in the
industry. You have now reached the stage in which your business will expand
and spread its roots into new markets and distribution channels. In order to start
capitalizing on the success of your business, you will need to capture a larger
market share and find new revenue. Therefore your business will experience a
rapid growth in revenue and cash flow. The rapid growth stage takes advantage
from the proven sales model, marketing model, and operations model set forth
from your growth/survival stage.
Challenges
5. Maturity Stage
After a successful expansion, your business is on top of its industry and has
matured. At the final stage of the business lifecycle, your business has a
dominating presence in its market. Your business could still be growing but not
at the substantial rate as you’ve previous experienced. Your current option is to
decide to take a step back towards the expansion stage or to think of a possible
exit strategy.
Challenges
130
At each stage, your business will rely on a financial source to help overcome the
challenges your business faces. This is especially important to have an
accounting management software in place so that you will have an accurate
reflection of your current business finances. Having an accounting software in
place will help you understand where your business is on the current business
lifecycle and the details will allow you foresee upcoming challenges and to make
better business decisions.
Discussion Forum
Identify and interview two successful entrepreneurs on their business life cycle.
Compare your findings with the five main stages of business life cycle and
growth as discussed in this unit.Post your discussion on the discussion forum.
4.0 Conclusion
The business life cycle is the progression of a business and its phases over
time, and is most commonly divided into five stages: launch, growth, shake-
out,maturity, and decline. To increase the chances of business success, the
business the Entrepreneur should require proper preparation and development
at all stages.
5.0 Summary
To recap what you have learned in this unit, click on the video below or copy the
link and paste on a web browser. The video is a summary of what you have
read in this unit. You could also click on the audio version and listen. You can
also download them and play offline.
Video
Audio
https://www.gnapartners.com/article/stages-business-growth
https://hbr.org/1983/05/the-five-stages-of-small-business-growth
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