1.
Entrepreneurship
● Involves identifying market opportunities, taking risks, and organizing resources.
● Traits: risk-taking, innovation, leadership, resilience.
● Entrepreneurs contribute to employment, innovation, and economic growth.
2. CSR (Corporate Social Responsibility)
● The idea that businesses should consider social and environmental impacts.
● Includes ethical sourcing, employee welfare, community development.
● Long-term benefit: builds brand image, customer loyalty, and employee morale.
3. Sustainability of Operations
● Focuses on reducing waste, conserving resources, and ethical practices.
● Triple bottom line: People, Planet, Profit.
● Can be costly short-term but offers competitive advantage long-term.
4. Role of Business in Economy
● Produces goods/services, creates jobs, pays taxes, drives innovation.
● Large firms may dominate industries; SMEs foster competition and innovation.
5. Small Business / Startups
● Flexible, responsive to customer needs, may struggle with finance and competition.
● Key in job creation, especially in developing economies.
● Often start as sole traders or partnerships.
6. Business Plan
● Document outlining mission, objectives, strategies, and financial forecasts.
● Essential for raising capital, planning, and risk management.
7. Mergers, Takeovers, Internal/External Growth
● Internal growth: organic, slow (e.g., opening new branches).
● External growth: faster, through mergers (friendly) or takeovers (hostile).
● Horizontal (same industry), Vertical (supply chain), Conglomerate (unrelated).
8. Workforce Plan
● Ensures the right number and type of staff are available.
● Involves forecasting demand, skills, recruitment, training, redundancy plans.
9. Cooperation Between Management & Workforce
● Improves productivity, motivation, and workplace harmony.
● Methods: team briefings, consultation, joint decision-making.
10. McClelland and Vroom (Motivation Theories)
● McClelland: People motivated by need for achievement, power, or affiliation.
● Vroom’s Expectancy Theory: Motivation = Expectancy × Instrumentality × Valence.
○ Effort must lead to performance; performance must lead to reward.
11. Financial / Non-financial Motivators
● Financial: Wages, bonuses, commission.
● Non-financial: Recognition, responsibility, job enrichment, team working.
12. Roles of Manager – Henri Fayol
● Key roles: planning, organizing, commanding, coordinating, controlling.
● Skills include decision-making, delegation, communication, leadership.
13. CRM (Customer Relationship Marketing)
● Focuses on long-term customer engagement and loyalty.
● Uses data to personalize service, increase retention, and customer value.
14. Pricing Methods
● Cost-plus: Add markup to cost.
● Penetration: Low price to enter market.
● Skimming: High price, then lower.
● Psychological, competitive, and dynamic pricing also used.
15. Promotion Mix
● Above the line: Media advertising.
● Below the line: Sales promotion, PR, direct marketing.
● Must be integrated with the product, price, and place (4Ps).
16. SEO (Search Engine Optimization)
● Improves visibility of a business online.
● Cost-effective marketing tool, especially for e-commerce businesses.
17. Outsourcing / Capacity Utilization
● Outsourcing: Delegating tasks to third parties to cut costs or access expertise.
● Capacity Utilization = (Actual Output / Maximum Output) × 100%
○ Under-utilization = inefficiency; over-utilization = overworked staff.
18. Sources of Finance
● Internal: Retained profit, sale of assets.
● External: Loans, overdrafts, share capital, leasing, crowdfunding.
● Short-term vs long-term finance depends on purpose and repayment ability.
19. Break-even Analysis
● Break-even Point: Where total revenue = total cost.
● Helps in decision-making (e.g., pricing, cost control).
● Formula: Fixed Costs / (Selling Price – Variable Cost per Unit)
20. Budgets
● Financial plans used to monitor and control expenditure.
● Types: income, expenditure, cash budgets.
● Variance analysis helps identify overspending or underspending.
21. Ethics in Business
● Doing what is morally right – honesty, transparency, fairness.
● Builds reputation but may increase short-term costs.
● Ethical dilemmas: profit vs sustainability, low cost vs fair wages.
22. Diversity / Equality
● Ensures inclusive workforce with equal opportunities.
● Leads to innovation, better decision-making, improved brand image.
● Legally and socially important for businesses today.
Intrapreneurship
Definition: Intrapreneurship is when employees within a company act like entrepreneurs —
generating innovative ideas, improving products or processes — but without taking personal
financial risks.
Summary: It encourages creativity and innovation from within the business, helping the firm
stay competitive. Intrapreneurs are given freedom and resources to explore ideas, which can
lead to new revenue streams or efficiencies.