Chapter 1

Characteristic
Confidence
Achievement oriented
Planning organizing skills set goals n targets
High tolerance for uncertainty
Highly flexible
Benefits
Opportunity to reach full potential
To reap impressive profits
Contribute to society
Enjoy their work

Drawbacks
uncertainty income
risk losing entire investment
long working hours
high level stress (financial)

Deadly mistakes
Weak strategic plan
Poor financial control
Improper inv control
Didnt implement effective marketing
strategy to retain cust
Poor location

Pitfall avoid
SWOT
develop solid biz plan
understand financial statements
cashflow
attract/ retain cust

Chapter 2
Strategic management
Managers plan how to compete successfully in marketplace
How to attract and retain customers
Company who use have higher levels of performance
Face continually changing situations, nid to examine current situations and action to
take
Strategic management process
Identify mission and goals
Analyze internal environment SW
External environment OT
Formulate strategies based on SWOT analysis
Implement turning plans to actions
Evaluate strategies effective or not

3strategic options
Cost leadership
Differentiation
Cost focus/ Differentiation focus

Chapter 3
Sole proprietorship
Advantages
Most simple to begin registration
Least regulated form of biz ownership financial statement not necessary
Least expensive form of biz ownership to establish
Total control of operations
Disadvantages
Limited range of skills and capabilities
Limited to capital can contribute and borrow
Personally liable for all biz debts
Biz ceases if sole dies or withdraw

Partnership
Advantages
Skills and abilities usually complete one another
Bigger pool of capital, easier borrow funds
Less regulated compared with corporation
Better control compared to corporation
Disadvantages
Conflicts in habits, goals ethics and values
Biz ceases if 1 dies or withdraws or disagreement
Less effective than corporation in attracting capitals
May lose personal assets due to bad biz decision by other partner
Corporation
Advantages
Does not dissolve when owner die or changes
Easily transferable by selling shares
Most effective in accumulating large amounts of capital
Shareholders not personally liable for the debts of biz
Disadvantages
Costly to set up registration more doc
Extensive regulation financial statements, annual meeting
Pay taxes at corporate rate
Give up significant controls
Chapter 4
Advantages buying existing biz
Best location alrdy
Employees and suppliers established
Equipment installed n production capacity known
New owner learn frm old owner mistakes
Attracting financing to purchase an existing biz, easier than find money to startup
Disadvantages
Location become unsatisfactory
Previous managers kept marginal employees because they are close frens
Equipment and facilities obsolete or inefficient
Mayb struggling and previous owner wants out
Employees and customers may resist changes, which new owner wants to make
Steps in acquiring biz
Analyze ur skills, abilities and interest to identify biz type suitable
List of potential candidates
Investigate using SWOT analysis
Explore finance options
Ensure smooth transition by communicating
Franchising Relationship
Product
Price
Place
Promotion
Purchasing
Quality Control