AS Business Studies External Environment

Which is the biggest company? Number of Employees Sales Turnover ProfitMarket ShareCaptial Employed 10,000$11,200,000$4,250,00032%$121,000,000 4,000$7,500,000$2,800,00041%$23,000, $30,000,000$21,000,00014%$42,000,000

Different measures of size 1. Number of employees 2. Sales Turnover 3. Profit 4. Capital Employed: The total value of money invested in the business 5. Market Share

Which is the biggest company? Number of Employees Sales Turnover ProfitMarket ShareCaptial Employed 10,000$11,200,000$4,250,00032%$121,000,000 4,000$7,500,000$2,800,00041%$23,000, $30,000,000$21,000,00014%$42,000,000 1.Why does the company with the least employees have the highest profit and turnover? 2.Why does the company with the lowest profit and turnover have the highest market share? 3.Why does the company with the least employees have the highest capital employed?

The benefits of small business to the economy Provide employment Provide variety and competition to larger firms May sell at lower prices due to lower average costs

Government help for small business Reduced rate of profit tax Loan guarantee scheme Providing information, advice and management support Grants

You want to set up a small business that produces sports shoes. Think of the ways in which you can compete with larger companies in this market and devise an appropriate strategy

Vegetarian Shoes Shoes that are made from recycled materials and do not include any animal by-products

Released in the late 1990s by a Swiss Company called Masai Barefoot Technology Sold 580,000 units in the United States in 2010 MBT Shoes $220

What are the benefits that we get from the existence of many small businesses?

Advantages of a small business 1. Does not require large amounts of capital to run 2. Can develop personal relationships with its customers 3. Ability to niche market 4. Does not suffer from diseconomies of scale 5. Decision making will be simpler and faster

Disadvantages of a small business 1. Lack of economies of scale 2. Unlimited liability 3. Difficulties in raising finance 4. No easily identifiable brand name 5. Limited marketing opportunities 6. Limits on potential revenue and profit