EIM301 - Entrepreneurship and Innovation Management III Exam Summary

, Disclaimer
These notes were compiled using Small Business Management: Launching and Growing Entrepreneurial Ventures, SA
Edition Textbook.

When utilising this information for any purpose that requires referencing, the following source is where I obtained this
information:

Longenecker, J.G., Petty, J.W., Palich, L.E., Hoy, F., Radipere, S., Phillips., M. 2017. Small Business Management:
Launching and Growing Entrepreneurial Ventures. 1st ed. Andover, Hampshire: Cengage Learning EMEA.


Please DO NOT cite or reference my notes as this is what I summarised and understood from reading, lectures and
tutorials I attended. The purpose of these notes is to assist in gaining an understanding for the module and assisting you
the way that the information assisted me in preparing for examinations.

Please do not distribute this document or try and sell it as your own work. It took many hours of hard work to compile and
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,Table of Contents
PRICING & CREDIT DECISIONS 6


SETTING A PRICE 6
PRICING STARTING WITH COSTS 6
PRICING STARTING WITH CUSTOMERS 6
APPLYING A PRICING SYSTEM 6
BREAK-EVEN ANALYSIS 7
MARKUP PRICING 7
SELECTING A PRICING STRATEGY 7
PENETRATION PRICING 7
PRICE SKIMMING 7
FOLLOW-THE-LEADER PRICING 8
VARIABLE PRICING 8
PRICE LINING 8
OPTIONAL PRODUCT & SERVICE PRICING 8
OFFERING CREDIT 8
BENEFITS OF CREDIT 8
FACTORS THAT AFFECT SELLING ON CREDIT 9
TYPES OF CREDIT 9
MANAGING THE CREDIT PROCESS 9
EVALUATION OF CREDIT APPLICANTS 9
SOURCES OF CREDIT INFORMATION 9
AGEING OF ACCOUNTS RECEIVABLE 10
BILLING AND COLLECTION PROCEDURES 10


PROMOTIONAL PLANNING 10


PROMOTION IS COMMUNICATION 10
DETERMINING THE PROMOTIONAL BUDGET 10
PROMOTING USING THE INTERNET & SOCIAL MEDIA 10
THE SMALL BUSINESS WEBSITE 10
SOCIAL MEDIA 11
PERSONAL SELLING IN THE SMALL BUSINESS 12
THE IMPORTANCE OF PRODUCT KNOWLEDGE 13
THE SALES PRESENTATION 13
ADVERTISING PRACTICES 13
ADVERTISING OBJECTIVES 13
TYPES OF ADVERTISING 14
ADVERTISING SPECIALISTS 14
FREQUENCY OF ADVERTISING 14
WHERE TO ADVERTISE 14
SALES PROMOTION 14
SPECIALITIES 14
TRADE SHOW EXHIBITS 14
PUBLICITY 15


GLOBAL OPPORTUNITIES FOR SMALL BUSINESSES 15


SMALL BUSINESSES AS GLOBAL ENTERPRISES 15
QUESTIONS TO CONSIDER BEFORE GOING GLOBAL 15
GLOBAL BUSINESSES: FORCES DRIVING GLOBAL BUSINESSES 15

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, EXPANDING MARKETS 16
GAINING ACCESS TO RESOURCES 16
CUTTING COSTS 16
CAPITALISING ON SPECIAL FEATURES OF LOCATION 17
STRATEGY OPTIONS FOR GLOBAL BUSINESSES 17
EXPORTING 17
IMPORTING 17
FOREIGN LICENSING 17
INTERNATIONAL FRANCHISING 18
INTERNATIONAL STRATEGIC ALLIANCES 18
LOCATING FACILITIES ABROAD 18
CHALLENGES TO GLOBAL BUSINESSES 18
POLITICAL RISK 18
ECONOMIC RISK 19
THE EASE OF DOING BUSINESS INDEX 19
ASSISTANCE FOR GLOBAL ENTERPRISES 19
ANALYSING MARKETS AND PLANNING STRATEGY 19
CONNECTING WITH INTERNATIONAL CUSTOMERS 19
FINANCING 20
PRIVATE BANKS 20
SMALL ENTERPRISE DEVELOPMENT AGENCY 20


PROFESSIONAL MANAGEMENT & THE SMALL BUSINESS 21


SMALL BUSINESS LEADERSHIP 21
WHAT IS LEADERSHIP? 21
LEADERSHIP QUALITIES OF FOUNDERS 21
WHAT MAKES A LEADER EFFECTIVE? 21
LEADERSHIP STYLES 21
SHAPING THE CULTURE OF THE ORGANISATION 21
THE SMALL BUSINESS MANAGEMENT PROCESS 21
FROM FOUNDER TO PROFESSIONAL MANAGER 22
BUSINESS GROWTH AND MANAGERIAL PRACTICES 22
MANAGERIAL RESPONSIBILITIES OF ENTREPRENEURS 22
PLANNING ACTIVITIES 22
CREATING AN ORGANISATIONAL STRUCTURE 22
DELEGATING AUTHORITY 23
CONTROLLING OPERATIONS 24
COMMUNICATING 24
NEGOTIATING 25
PERSONAL TIME MANAGEMENT 26
THE PROBLEM OF TIME PRESSURE 26
TIME SAVERS FOR BUSY MANAGERS 26
MENTORS, SMALL BUSINESS NETWORKS & BUSINESS SERVICES 26
THE NEED FOR ASSISTANCE 26
THE ROLE OF MENTORS 26


MANAGING HUMAN RESOURCES 28


RECRUITING PERSONNEL 28
THE NEED FOR QUALITY EMPLOYEES 28
THE LURE OF ENTREPRENEURIAL BUSINESS 29
SOURCES OF EMPLOYEES 29
DIVERSITY IN THE WORKFORCE 31
JOB DESCRIPTIONS 31

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