Demographics
Demography study of human populations or peoples vital statistics
o Age, gender, race, immigration rates, location, etc.
Why is it important to business?
o Basis for any market is people
Better understand your target market
Anticipate and s
4 Economic Factors
Pillar #1 Chartered Banks
Privately owned not government owned
Publicly traded shares can be bought
Profit seeking
Largest and most important institution
Concentrated and highly regulated industry
o Five largest account for 90% of total
2 Understanding Entrepreneurship
Unemployment can be a boost for entrepreneurship (economic)
An entrepreneur needs
o A developed skill set
o Familiarity with the industry
o Passion for their product/service
Starts with indentifying opportunities, and then
3 Social Factors
Behaviour Toward Employees
Hiring/firing should be based on objective performance for the position.
Privacy Employees should be able to live their personal lives. For example, turning off
BlackBerry phones away from work
Behaviour Towar
1 - Course Model & Environmental Analysis Models
Critical Success Factors
Achieving Financial Performance: cash flow, profits, appropriate use of funding, return
on investments, etc. Financial performance needs to be consistently increasing in order
to gr
Porters Five Forces (Power Play)
Intensity of competition in an industry
More competition = less profitability
Suppliers
The lower the bargaining power of the suppliers = the more attractive
industry/profitability
Fewer suppliers, gives power to them
T
PEST
Political-Legal
Relationship between a business and the government in a specific country
The government is a regulator
Elements
o Laws/regulations labels, minimum wage, certifications, etc.
o Taxes different sectors are taxed differently
The gove
Corporate Social Responsibility
What the business does to society vs. what the business does for society
Some experts consider the business is solely responsible for making profits
o Let the investors get their money back, and give back to society in a di
International Banking and Finance
Governments and corporations frequently borrow in foreign markets
Type of Investments: BONDS
Represents debt for issuing corporation or government
Characteristics
o Legal, binding agreement (have to pay back interest and
BUSINESS PLANNING (Chapter 2: Writing An Effective Business Plan) = Approx. 8 Marks.
(10%)
The Benefits of Writing A Business Plan + The Model of Business Planning
COMPONENTS OF A BUSINESS PLAN = key questions, best practices, critical risks,
milestones
