people in a business.pdf

Stakeholders -different groups of people that are involved in and/or affected by how a business is run -they depend on each other -decision by one stakeholder can affect other stakeholders -eg entrepreneurs, investors (owners’ capital, loan capital, grants), suppliers, service providers, employees,...

Stakeholders -different groups of people that are involved in and/or affected by how a business is run -they depend on each other -decision by one stakeholder can affect other stakeholders -eg entrepreneurs, investors (owners’ capital, loan capital, grants), suppliers, service providers, employees, consumers, government, managers, producers Stakeholder Examples -entrepreneurs -investors (owners’ capital, loan capital, grants) -managers -employers -employees -consumers -interest groups -producers -suppliers -service providers -government Entrepreneurs -person who spots an opportunity to market a product or service and takes the risk of setting up a new business with the intention of making a profit -characteristics = innovative, risk taker, use initiative, self-confident, spot gap in market etc -face two risks -financial failure risk eg loss of owner’s capital investment if business fails -personal failure risk eg reputational damage if business fails Investors -put money/capital into a business venture in the hope of earning a return 3 -unlike the entrepreneur who develops a new business idea then carries it out, investors simply provide the finance which makes it possible for the business to get started -some Investors can seek security for money they invest in a business, this reduces the risk of loss should the business fail eg asset secured against bank loan -eg banks (loans), government bodies (grants), shareholders (dividends) Managers -job is to run the business on a day to day basis -management involves working with people and using resources, such as money and equipment to ensure the business achieves its goals -overall large business managers are known as chief executive officers CEO or managing directors MD -eg Tim Cook is the CEO (overall manager) of Apple -characteristics of managers are innovative, motivating, good delegator, excellent leader, strong initiative, hardworking, resilient, customer focused, hold reality perception, flexible, good communicator (Unit 3 Notes page 1) -management skills are leading, communicating, motivating (Unit 3 Notes page 2) -management activities are planning, organising, controlling (Unit 3 Notes page 33) Employers -people who hire or contract people to work for them in return for pay -very important that a good relationship exists between employers and employees (leads to higher quality products/services to satisfy consumers) -employers have responsibilities -employers have desires -eg Pat McDonagh Supermac’s