People in Business PDF

**[WHAT IS A BUSINESS]** Business is an organisation that produces a good and/or service and supplies them to customers. A business can be: 1\. Commercial -- provides goods and service to make a profit for the owner 2\. Non - Commercial -- also known as not-for-profit. They generate revenue from...

**[WHAT IS A BUSINESS]** Business is an organisation that produces a good and/or service and supplies them to customers. A business can be: 1\. Commercial -- provides goods and service to make a profit for the owner 2\. Non - Commercial -- also known as not-for-profit. They generate revenue from fundraising donations or grants (Concern, GAA) [WHO ARE THE STAKEHOLDERS INVOLVED IN BUSINESS?] Stakeholders are the different groups of people who are directly affected by how the business is run. [The following are the stakeholders in a business: ] 1\. Entrepreneurs 2\. Investors 3\. Employers 4\. Employees 5\. Managers 6\. Producers 7\. Suppliers 8\. Service Providers 9\. Customers 10\. Society 11\. Government [1. Entrepreneurs] These are the people who see a gap in the market and take the initiative to turn an idea into a business. They see an opportunity to make a profit but also take the financial risk that the business might fail [2. Investors] Often entrepreneurs will not have enough money to start a business. Investors are the people who provide a business with the finance it needs. This capital can come from a\. Owners capital -- Is money invested by people or companies in return they become part owners of the business. It is also known as equity capital b\. Loan Capital -- Is finance provided by banks or other lenders. It has to be repaid with interest and within a certain time frame c\. Grants -- These are usually provided by state agencies (Enterprise Ireland). This money does not have to be paid back as long as certain conditions are met [3. Employers] As soon as entrepreneurs recruit people to work in a business they become employers Right Responsibilities +-----------------+-----------------+-----------------+-----------------+ | Rights | Responsibilitie | | | | | s | | | +=================+=================+=================+=================+ | 1 | To Recruit | 1 | Providing a | | | employees when | | written | | | they | | contract of | | | | | employment | | | need them | | | +-----------------+-----------------+-----------------+-----------------+ | 2 | Give directions | 2 | Paying wages as | | | to employee on | | agreed in the | | | | | contract of | | | how to perform | | | | | their tasks | | employment | +-----------------+-----------------+-----------------+-----------------+ | 3 | Dismissing | 3 | Providing a | | | employees | | safe work | | | fairly | | environment | | | | | | | | (Unfair | | | | | dismissal act | | | | | 1977- | | | | | | | | | | 2007) | | | +-----------------+-----------------+-----------------+-----------------+ [4. Employees] Employees are recruited by business to assist in the business in return for a wage +-----------------+-----------------+-----------------+-----------------+ | Rights | Responsibilitie | | | | | s | | | +=================+=================+=================+=================+ | 1 | Receive a | 1 | Following | | | written | | instructions | | | contract of | | (as long as | | | | | they | | | employment | | | | | | | are reasonable | | | | | and legal) | +-----------------+-----------------+-----------------+-----------------+ | 2 | Being paid the | 2 | Doing a fair | | | agreed wage | | day's work for | | | | | a fair day's | | | | | pay | +-----------------+-----------------+-----------------+-----------------+ | 3 | Working in a | 3 | Being honest | | | safe and | | and loyal in | | | healthy | | their work | | | | | | | | workplace | | | +-----------------+-----------------+-----------------+-----------------+ [5. Managers] Managers are the people who are responsible for the running of the business and achieving its goals. [6. Producers] Producers are the business that make products to sell to customers. They transform raw materials into finished products [7. Suppliers] Suppliers are the business that supply the raw material needed by the producer [8. Service Providers] These are the business that supply the services that are needed by the business e.g. \- Electricity \- Banks [9. Consumers] Customers These are people who purchases goods from a business for their own use and/or for resale Consumers These are people who buy goods and services for their own use only [10. Society] This refers to the local community where the business in located and to wider society both naturally and globally. They want business to behave in a socially responsible manner and not to damage the environment of welfare of others [11. Government] Changes in Government laws and taxes can affect businesses (Budget). The government wants business to \- Provide Jobs \- Pay their taxes \- Obey the Law [Co-operative Relationships ] A co-operative relationship exists where both parties work together to achieve a common goal. It is a win-win relationship of mutual benefit, where both sides gain and are better off afterwards than they were before. Employer and Employee: Skill Development and Training: An employer provides opportunities for employee upskilling (e.g., funding courses or workshops), and the employee uses the new skills to improve productivity, benefiting both parties. Profit-Sharing Schemes: The employer offers profit-sharing incentives or bonuses based on company performance, motivating employees to work harder, which helps the business succeed. Investor and Manager: Business Expansion Plans: Investors provide capital to support the manager's vision for growth, and the manager works diligently to generate higher returns for the investors. [Competitive Relationship] A competitive relationship exists when both parties are pursuing a mutually exclusive or different goal in an effort to achieve particular objectives at the expense of the other. It is known as a win-lose relationship. Competitive Relationship: Employer and Employee: Wage Negotiations: Employees demand higher wages or better conditions, while the employer tries to minimise costs to maintain profitability. Performance Management: An employee may prioritise personal work-life balance over high productivity, whereas the employer may expect increased effort to meet targets. Investor and Manager: Profit Distribution: Investors may demand a higher dividend payout, while managers prefer to reinvest profits into the business to fuel growth.