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Summary outlines for Untitled presentation_1 Enterprise Capability Overview: Enterprise capability refers to the essential attributes that enable individuals or organisations to effectively manage and grow a business. Key components include risk-taking, decision-making, innovation,...

Summary outlines for Untitled presentation_1 Enterprise Capability Overview: Enterprise capability refers to the essential attributes that enable individuals or organisations to effectively manage and grow a business. Key components include risk-taking, decision-making, innovation, and maintaining a positive attitude, all of which contribute to entrepreneurial success. Risk-Taking: ○ Entrepreneurs recognize potential risks but are motivated by the possibility of high returns. ○ Calculated risks involve assessing potential losses against expected gains. Decision-Making: ○ Effective use of resources requires wise decision-making. ○ Decisions often carry inherent risks, impacting production factors and resource allocation. Innovation: ○ Entrepreneurs can create new products/services or improve existing ones. ○ Innovation may involve rebranding or repositioning in different markets. Positive Attitude: ○ A positive mindset drives entrepreneurs to take risks and overcome challenges. ○ Essential for resilience in facing business obstacles. Stakeholders in an Enterprise: ○ Internal Stakeholders: Employees: Require fair wages, job security, and good working conditions. Owners/Shareholders: Seek growth and profitability for reinvestment of dividends. ○ External Stakeholders: Customers/Consumers: Generate revenue; enterprises must meet their needs for loyalty. Government: Enforces laws and collects taxes; interested in employment generated. Local Community: Affected by business operations; benefits from jobs and infrastructure. Suppliers: Provide necessary materials; timely payments ensure continuous supply. Lenders: Financial institutions requiring timely repayment to maintain future borrowing capacity. Competition: Other businesses in the same market; strategies must consider competitive actions. Types of Enterprises: ○ Business Enterprises: Aim primarily for profit generation, with profits reinvested or distributed.  ○ Social Enterprises: Focus on societal improvement rather than profit; any profits support community benefits. Purpose of Enterprise: ○ To utilize resources (land, labor, capital) effectively to produce goods/services. ○ To foster innovation, initiative, and calculated risk-taking in business management. Stakeholders in an Enterprise Overview: Stakeholders in an enterprise are individuals or groups with an interest in the business's activities. They can be internal (employees, owners) or external (customers, suppliers, government), and their needs and expectations significantly influence business operations and decision-making. Internal Stakeholders: ○ Employees: Require fair wages, job security, and good working conditions to remain productive. ○ Owners/Shareholders: Seek growth and profitability for returns on investment. External Stakeholders: ○ Customers/Consumers: Essential for revenue; enterprises must provide quality products/services at fair prices to maintain loyalty. ○ Government: Enforces regulations, collects taxes, and is interested in employment generated by businesses. ○ Local Community: Affected by business operations; enterprises should minimize negative impacts while contributing positively through jobs and infrastructure. ○ Suppliers: Provide necessary materials/products; timely payments ensure continuous supply. ○ Lenders: Financial institutions that require timely repayment of loans to facilitate future borrowing. ○ Competition: Other businesses in the same market; strategies may need to align with or outperform competitors. Employee Relations: ○ Importance of maintaining a positive work environment to enhance productivity and satisfaction. Customer Satisfaction: ○ Critical for sustaining revenue; involves understanding and meeting customer needs effectively. Government Regulations: ○ Compliance with tax, labour, and environmental laws is essential for legal operation and potential benefits. Local Community Impact: ○ Businesses should consider their effects on local traffic, pollution, and community welfare. Supplier Relationships: ○ Strong partnerships with suppliers are vital for operational efficiency and reliability.  Lender Obligations: ○ Maintaining good relationships with lenders ensures access to capital when needed. Competition: ○ Understanding competitive dynamics helps businesses strategize effectively to capture market share. Business Strategy Overview: Business strategy involves identifying needs, conducting market research, assessing risks, and recognizing skills to create a plan that guides an enterprise towards achieving its goals. It is essential for making informed decisions and ensuring the long-term success of a business. Identifying Needs: ○ Use group discussions, brainstorming, and individual reflection. ○ Collect ideas from stakeholders to understand various aspects of the opportunity. ○ Ensure clarity in the problem or need being addressed. Market Research: ○ Conduct thorough research on market needs to support the identification of business opportunities. ○ Helps establish clear aims and vision for the enterprise. Risk Assessment: ○ Evaluate potential risks before starting any enterprise activity. ○ Understand the balance between risk-taking and expected returns. Skills Recognition: ○ Reflect on the skills required for successful entrepreneurship. ○ Assess whether the entrepreneur and associates possess these skills. Enterprise Capability: ○ Key attributes include: Risk-taking: Entrepreneurs take calculated risks expecting high returns. Decision-making: Wise use of resources while considering associated risks. Innovation: Ability to spot opportunities in existing products/services. Positive Attitude: Drives entrepreneurs to face challenges. Stakeholders: ○ Internal Stakeholders: Employees, owners/shareholders who are directly involved. ○ External Stakeholders: Customers, suppliers, lenders, government, local community, and competition. ○ Importance of considering stakeholder interests in decision-making. Types of Enterprise: ○ Business Enterprises: Aim to make profits; reinvest profits for growth or distribute to owners. ○ Social Enterprises: Focus on social causes; profits sustain operations but are not the main aim.  Main Stakeholder Interests: ○ Customers: Require quality products/services at fair prices. ○ Employees: Need fair wages, job security, and good working conditions. ○ Lenders: Expect timely repayment to facilitate future borrowing. ○ Government: Interested in tax compliance and employment generation. ○ Local Community: Affected by business activities; can benefit from jobs and infrastructure improvements.