Chapter 1 – People in Business PDF

Chapter 1 – People in Business Entrepreneurs Investors Employers and employees Managers Producers 1. These are the people who see a 1. Investors are the people who 1. These are people wh...

Chapter 1 – People in Business Entrepreneurs Investors Employers and employees Managers Producers 1. These are the people who see a 1. Investors are the people who 1. These are people who work in a 1. are responsible for the running 1. These are the business that gap in the market and take the provide a business with the business of the business and achieving its make products to sell to initiative to turn an idea into a finance it needs. 2. Thier right include being paid goals. customers. business. 2. This capital can come from a min.wage 2. They plan organise and control 2. They transform raw materials 2. They take the financial and Loan or grants 3. Respoinsibility include being (Mgt Activities) into finished products personal risk that the business 3. Thier needs are Return and honest and loyal 3. thye must have leadership, 3. their needs are Loyal might fail the offer capital Motivation and Communications Customers and they offer qulaity 3. Their needs are profits and Skills (Mgt Skills) products they offer employment Service Providers Society Government Suppliers Consumers 1. These are the business that 1. This is the local community 1. They run the country and thier 1. Suppliers are the business that supply the services that are 1. are people who purchases where the business in located. policies affect business supply the raw material needed goods from a business for their needed by the business 2. They want business to behave 2. The government wants to by the producer own use and/or for resale 2. For example Electricity and in a socially responsible manner business to Provide Jobs, Pay 2. Their needs are payment on Insurance 2. Thier needs are Quality and not to damage the their taxes and Obey the Law time and they offer quality rawe 3. Their needs are loyal products and thier offer loyality environment 3. They need taxes and the offer materials custoomers and the offer 3. their needs are jobs and the grants product and serices offer responsible brand name Business Relationships Interest Groups Resolving conflict Competitive Relationship - This type of relationship is one Interest groups are organisations representing Non-Legislative Legislative of win/lose. Only one party will win form the relationship. people (or stakeholders) who share a common 1. Talk 1. Third party the stakeholder must compete to gain commercial goal or interest. 2. Negotiations advantage over the other used when dealing with rival firms They are also known as pressure groups as they Co-operative Relationship - This type of relationship is on try to influence the decision of others by of win/win. Both parties will win form the relationship. Lobbying, Negotiations and Boycotts Example of Relationships Stakeholder work together in a mutual benefit and not Examples include – IBEC, SFA, ISME, CCPC Stakeholder Competitive Co-operative against the stakeholder Employee Low wages BIK Dynamic Relationship - is a relationship that can changes Trade Associations - Are business interest Investor Misleading info good ROI over time. As the business grows the roles of the groups that represent business involved in Customers Low quality Loyalty stakeholder can change similar types of business Suppliers Low price Fair conditions Examples included - SIMI Society of the Irish Government Taxes Follow laws Motor Industry (Garage and car dealers) Society ignore needs Goodwill  Chapter 1 – People in Business PAST PEOPLE IN BUSNESS QUESTIONS 2018 – OUTLNE METHODS OF TERMINATING A CONTRACT 2018 – IMPACT OF TRADE DISPUTE ON STAKEHOLDERS 2017 – EXPLAIN THE TERM COOPERATIVE RELATIONSHIP 1. Frustration – Unforeseen event, something happens which makes 1. Employees – Not receive a wage, may result in financial DESCRIBE AN EXAMPLE it impossible to complete the contract hardship, employees may become unmotivated Both parties work towards a common goal. It is a win/win both 2. Breach – One party doesn’t perform their contractual obligation, 2. Customers – Not being able to purchase goods and meet hoer sides are better off Breach of a condition – important element needs, become disloyal and change brands Employer/employee – Fair wage for a fair day’s work 3. Agreement – Both parties agree to end the contract and go back 3. Investors – Bad publicity, share price may drop, profit may Investor and manager – Financial resource used effectively for a to the way thing were before head reduce less dividends, may sell shares fair return of their investment 4. Performance – Both parties do what they said they would do. 4. Government – Less income (PAYE, PRSI, USC) Business may Producer/consumer – Brand loyalty for a quality product at a fair The contract is executed to the terms close down – more social welfare payments price 5. Suppliers – Credit may be extended, cash flow problems 2015 – EXPLAIN A COOPERATIVE AND COMPETITIVE 2014 – Describe the role of any two interest groups 2011 – OUTLINE THE RELATIONSHIPS BETWEEN RELATION FOR THE FOLLOWING This is an organisation that represents the viewpoint of a INVESTORS AND ENTERPRENEURS Investor/entrepreneur – Cooperative - open honest information particular group. Influence decision made by negotiation, lobbying Cooperative – open honest and transparent information Investors invest in the business. Competitive – Invests wants a return and boycotting. give money in return for a dividend/return straight away downs invest ICTU – Represents all Trade unions, Provides info. Assist in Competitive – Entrepreneur uses profits to expand the business Supplier/purchasing manager – Cooperative – Provide good Quality resolution Negotiate agreement with Gov and IBEC investor might want a return product that are paid for on time. Competitive – Poor after sales IBEC – Represent Employers, Advise members of new EU Dynamic – The investor become a competitor of the they invest in service results in less ordering Legislation IFA – Lobbies Gov decision. Promote farming policies 2009 – DISCUSS HOW CONSUMER CAN BENEFITS FROM A 2008 - DESCRIBE A COMPETITIVE AND COOPERATIVE COMPETITIVE RELATIONSHIP BETWEEN PRODUCERS RELATIONSHIP BETWEEN TWO PRODUCERS Improved Quality ERS AND GIVE EXAMPLE Improved customer service Competitive - Pursuing the same objectives, win/lose – e.g Prices Better choice of products for their product Better value for money Cooperative – Producer work together, win/win e.g lobby the government to solve problems of a mutual benefit