Types of Businesses
Types of Businesses
Mom & Pop
Here the owners call the shots. These types of business more often than not
are socially responsive to the needs and sensitivities of the community.
A mom & pop business is so closely integrated into the nearby community
that there is little room for deceptive and dishonest business practices.
Their pricing is not cost analyzed.
Sole Proprietor
Here the owner sets business policy. The success of the business is tied to
the reputation the business grows in the community. Sole proprietors who
work in the trades are distant from the moral scrutiny of the neighborhood
and therefore have more opportunities to deviate from acceptable ethical
standards. The pricing of materials and labor is not cost analyzed while
in some cases it might be arbitrary and opportunistic.
Informal Business
Many times a small business that is just starting up tries to build a reputation
in the community by presenting themselves as friendly and responsive to the
customers’ needs. The pricing is not arbitrary but it can vary from
customer to customer as the business owner’s gives special consideration
to each of their clients.
CA, Cost Analyzed.
A cost analyzed business is a formal business that
systematically organizes the pricing policy. Here, the goal of business
revolves around profits not necessarily about people. Nothing can be
said about cost analyzing except to point out the nature of the intimate
relationship between the buyer and seller has changed from that of an
informal business.
RCA Radically Cost Analyzed
A radically cost analyzed business aggressively maximizes the profit for each
sale. Here "charge what the market will bear" determines the price.
Profits weigh heavily on thinking to the point the client or customer might
feel used and in the future seek out a more customer responsive business.
When savvy consumers are looking for an auto repair shop they are careful
to note how detached and distant the business is to their needs. From experience
consumers learn the downside of radically cost analyzed businesses.
RCA-2 Radically Cost Analyzed with upward growth
These radically cost analyzed business tend to be socially responsible business
that charge a lot for their products or labor but reliably deliver a service
or make good on defective merchandise. There is a reasonable balance between
profits and people. Customers often go away with a feeling of great satisfaction
while being quite aware of the expense of the product or service. They charge
a premium and deliver premium products and services.
RCA-3 Radically Cost Analyzed with a downward spin
Criminal enterprises generally fit this category. The guiding principle is "charge
what the market will bear." Bait and switch advertisements are often evident.
Padding time cards and charging for materials not delivered are also evident.
The owner and employees remain somewhat distant from the customers feigning
friendship while betraying the trust they build in their client base. Such
businesses are often mismanaged forcing them to justify bad behavior in the
name of survival.
FB-C Family Businesses with ties to the community
FB-E Exploitive Family Business
Note: Many categories to be added this year |