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Unit 1: Business Creation Topic 1: Fundamentals of business (BUSINESS…
Unit 1: Business Creation
Topic 1: Fundamentals of business
BUSINESS FUNCTIONS
Operations
Production of goods and services
Marketing
The promotion and sale of goods and services
Finance
Ensuring the business has the appropriate cash flow to maintain the other functions
Human Resources
The management of the people who make up the business
BUSINESS STRUCTURES
Legal Ownership structures
Sole Trader
Partnerships
Company
Private
Public
Organisational Structures
Tall
Flat
Functional
Divisional
Organisational Culture
Values, attitudes and beliefs among all stakeholders
REASONS FOR OPERATING
Profit
Not-for-profit
Government businesses
LEADERSHIP AND MANAGEMENT STYLES
Leadership styles
Leadership relates to the way that the leader is able to direct and efficiently coordinate the activities of others
Authoritative
Charismatic
Bureaucratic
Authentic
Coaching
Mentoring
Transactional
Transformational
Situational
Management styles
The process of supervising and administering the people and activities of the organisation
Autocratic
Persuasive
Consultative
Participative / democratic
Laissez-faire
ENTREPRENEURSHIP
Entrepreneur
People who see problems and identify solutions that could be turned into business ideas
Intrapreneur
As for entrepreneurs but remain employed by a business to look for solutions related to the business
STRATEGIC PLANNING
A clear vision of what the business sets out to achieve
Mission statement
Vision statement
Goals
Strategies
Objectives
Tactics
STAKEHOLDERS
People and organisations that have an interest in the undertakings of the business
Owners
Suppliers
Employees
Government
Community groups
Interest can be direct or indirect and could cause conflict
Business sizes
Micro
1-4 employees
Small
<20
Medium
20-199
Large
200+
BUSINESS ENVIRONMENTS
Internal
The area over which the business has the most control
Owners
Managers
Employees
Operating
The external environment that directly affects the business
Suppliers
Unions
Interest groups
Macro
Everything else in the external environment (STEEPLE)
Socio-cultural
Technological
Environmental
Economic
Political
Legal
Ethical