Enterprise Notes-Mr Mc Mahon

Enterprise is any attemt to start or do something new eg setting up a new business. An entrepreneur sets up a new business and shows initiative, confidence and is a realistic risk-taker.

Enterprise can also be seen in home eg growing your own organic vegetables, preparing a household budget, school eg setting up evening study or a new club, community eg setting up neighbourhood watch or tidy towns committee

How does the role of an entrepreneur differ from that of a manager?

(1) An entrepreneur sets up the buisness and the manager runs it.

(2) An entrepreneur has the potential to make high profits whereas a manager is paid a set salary.

(3) An entrepreneur works for themselves whereas a manager is often employed by others.

(4) An entrepreneur comes with an idea, a manager is responsible for implementing it.

An intrapreneur is an employee that shows initiative to act like entrepreneurs eg a vodafone employee coming up with new ideas that could be used in a mobile phone or a chef desinging a new and exciting menu that could be used in a restaurant.

 Benefits of Intrapreneurship to a business
(1) Increase profits by reducing costs and wastage.
(2) An important source of ideas for new products and new markets. This will improve the competitiveness of the business.
(3) It improves motivation and reduces employee turnover.
(4) It will be easy to recruit new highly skilled employees.
(5) Implementing changes e.g. new work practices will be easier as employees will be willing to accept changes.

 Factors that encourage people to become entrepreneurs
(1)  To make a good standard of living (to earn more then they would get by working for someone else).
(2)  High need for achievement.
(3)  To be independent/set own goals.
(4)  Challenge.

Skills needed by Entrepreneurs
(1)  Leading.
(2)  Motivating.
(3)  Communicating.
(4)  Time management – making the best use of the time available.
(5)  Decision making and prioritising.
(6)  Stress management.

List four methods a business enterprise might use to generate ideas
(1)  Look at what competitors are doing.
(2 ) Review customer complaints/feedback/suggestions.
(3)  Brainstorm among employee
(4)  Engage in market research.
(5)  From own Research & Development Department.

Proactive – spotting problems ahead of time and taking early corrective action i.e. organising training if you identify a need for a particular new skill/technology in the near future.

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

Strengths-characteristics of the business or team that give it an advantage over others in the industry-eg good location, good staff morale etc.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others-eg narrow product range
Opportunities: external chances to make greater sales or profits in the environment-eg Expansion of European Union, Internet(e-commerce)
Threats: external elements in the environment that could cause trouble for the business-eg Change in legislation(smoking ban in pubs)

Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. Marketing mix consists of 4P's

■Product – A physical product(football boots) or service(taxi).
■Price – The price is the amount a customer pays for the product. It is determined by a number of factors including competition, material costs, product identity and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
■Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
■Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements – advertising, public relations, word of mouth and point of sale.

Market research consists of testing the market to determine the acceptance of a particular product or service. The reasons for conducting market research are

(1) to identify the types of people interested in a particular product/service

(2) to find out what potential customers need and want

(3) to help find a suitable selling price

(4) to obtain information about competitors

2 types of Market Research (1) Desk Research (2) Field Research
 

Desk Research involves gathering and analysing information, already available in print or published on the internet.

Field Research involves going into the market place (the field) to carry out customer surveys. Although more expensive than desk research, field research can provide more detailed and relevant information.

Outline three reasons why it is important for a business to plan ahead. 6 marks
1 To foresee and anticipate future trends/changes in consumer tastes/problems.
2  It allows you set realistic goals/targets which are achievable.
3  You can review existing position and see if any changes are needed/make decisions.
4  You are aware of financial requirements and a plan is needed if applying for a loan or grant.
5  You can draw up budgets and limit spending/purchase equipment in the future.

Voluntary Organisations

A voluntary organisation is a non-profit organisation formed when a group of people come together on a voluntary basis with the aim of improving the lives of others in the community eg Tidy Towns Committee, Trocaire.

Benefits of voluntary organisations-

(1) provide a service otherwise not available

(2) help the less well off in society eg the elderly

(3) create greater community spirit eg tidy towns committee

Describe two ways in which commercial businesses may give support to a voluntary
organisation/community enterprise.  Explain giving one reason why commercial enterprises might do this.

1 Financial support- Grants, Sponsorship
2 Donations- Use of vehicles/equipment. Provide free materials/food.
3 Man hours- Allow employee to work on the project during working hours. Provide expertise in a particular area.
4 Facilities- Allow business premises be used for meetings etc.
Reasons
1 Good PR- Good public relations to be seen giving something back.
2 Tax benefit Certain donations are allowable against tax.
3 Community Spirit To put something back into the community.

Community Enterprises

A community enterprise is a small commercial organisation established for the benefit of the local community rather than an individual. They include    

(1) Fas- provides training and employment programmes and recruitment services.

(2) County Enterprise Boards- provide employment and capital grants to smalll businesses and a mentoring service.

(3) Leader Plus Programme- this is an EU initiative for rural development. It enables groups in rural areas to develop business in their own areas.

Explain why people get involved in community organisations.
1 To improve life for a group of people; better amenities/services for a group of people.
2 To develop a sense of community spirit.
3 To give back something to society.
4 To use free time productively.
5 For own personal development/satisfaction/making friends.

Draft a typical agenda of the AGM of a limited company

Note: The Agenda is the list of items to be discussed at the meeting-the chairperson makes sure the agenda is followed.
The Minutes are a written account of what was discussed at the meeting prepared by the secretary.

The items in the agenda must correspond with the minutes of the meeting that you have to draft.

Agenda

Notice is hereby given that the 6th Annual General Meeting of Office Systems Ltd. will be held in the head office of the company at Main Street, Longford on the 11th of January 2004 commencing at 11am. The following is the agenda:

1) Minutes of the 2003 AGM.
2) Matters arising from the minutes.
3) Chairperson’s Report.
4) Auditors report and accounts.
5) Dividends
6) Remuneration and appointment of auditors.
7) Any Other Business.

Contract of Employment

All employees are entitled to receive a written contract of employment. The contract will include the following-

•Full name of employer

•Full name of employee

•The address of the employer

•The place of work (if there is no permanent place of work, a statement specifying that the employee is required or permitted to work at various places)

•Appointment/job role - The title or description of the job or the nature of the work for which the employee is employed

•The date of commencement of the contract

•The period of notice required from each party to terminate the contract

•The rate of pay, the method of calculation and the frequency of payment

    Identify and explain three benefits of working as a team

1  Work is shared, individual workload is lessened/job gets done quicker/better quality
    work/more ideas come forward.
2  You have people with different skills which make the project more successful/easier to solve
    problems/better decisions made.
3  You can learn from other team members, new skills.
4  Creates sense of bonding, workers happier.
5  You have greater appreciation of what is involved in job areas other than your own.

What makes a person a good team member?

1. Being a good listener.
2. Being willing to do your share/share ideas.
3. Being good at encouraging others to participate.
4. Asking for help from others when needed/offering help when needed..
5. Good at keeping to target/ committed to making the team work by keeping deadlines.

 Describe three ways a team can evaluate its group performance.

1. Compare what was achieved to the plans/targets drawn up/aims/goals/ how successful
    was the activity?
2. Class discussion.
3. Ask teachers/other adults.
4. Teams can review how each member has developed/ new skills learnt/quality of what
    was learned?
5. Were there many disagreements?
6. How were disputes settled?
7. Questionnaires.

What makes for a successful/effective leader in any organisation?
1. A good planner will ensure goals are achieved and carried out.
2. They have a knowledge of all aspects of the work of the organisation.
3. Charismatic personality so that people will work with them.
4. Good decision maker so that progress can be made.
5. Having good communication and listening skills.
6. Being innovative, not afraid to try out new things.

How can an organisation benefit from effective leadership?
1. They are more profitable/sucessful.
2. They have a good reputation as an employer and generally.
3. Workers are happy/less stressed/ less staff turnover/less industrial relations problems.
4. Staff know their role/more productivity/motivated

Explain what is meant by the term good communicator.  This is someone who can get their message across in an effective way so that
the information is acted upon. They are also a good listener so that they will
hear what is being said and not misinterpret it.

Outline three ways of improving your communication skills.

1 Attend training course to get outside help.
2 Practise speaking in public/join a drama group
3 Improve your ICT skills/report writing skills
4 Be well prepared so that you are not worrying about being caught out/you
can answer questions asked/Mock Interviews
5 Research/read self help books/web sites.

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