1.Business Organization
For-profit (commercial) organisations
LTD
click to edit
1.7
lewins model
1.3 - Organizational Objectives : 😃
Sole trader
PLC
Partnership
fishbone model
Gantt chart
decision tree
1.1
often big, multinational companies boasting large numbers of employees
most common type of organisations, where business is owned
by only one person. Sole traders are simply entrepreneurs with a business idea that they want to implement on their own
FACTORS OF PRODUCTION
TYPES OF BUSINESS ROLES
1.4 - Stakeholders
click to edit
DEFINITIONS
similar to sole traders, but there is more than one owner. Partners share responsibilities for running business and the profits. When starting a joint ownership, partners are obliged to draw up a deed of partnership, a legal document which states each partner’s’ rights in the event of a dispute
SECTORS OF BUSINESS
PROBLEMS THAT NEW BUSINESS FACE
Human resources
Finance and accounting
Marketing
separate legal entities from their owners.
Operations
Secondary
Manufacturing and processing, where raw materials are converted into products for sale.
Vision and Mission
Managers: Managers are the individuals who run the organisation. They are responsible both for setting aims and objectives and making sure they are met. In order to be successful, managers must create an environment where employees can work together to meet these objectives. Managers are therefore interested in the success of their enterprise, as well as the advancement of their own careers. They are also sensitive to the level of their compensation and benefits, as well as their working conditions, job security and the content of their work.
TertiaryAny business that sells a service.
Primary:
Extraction or production of raw materials
QuaternaryService sector that focuses on knowledge.
Ansoff's Matrix
CSR
SWOT Analysis
Aims, Objectives Strategies and Tactics
Definition:
A stakeholder is any individual or group that affects an organisation or is affected by it. Stakeholders are often classified as internal (CEO, different level managers, employees and shareholders/owners) or external (customers, suppliers, unions, competitors, the government and society as a whole).
click to edit
Land
Non-profit (social) enterprises
Charities
REASONS FOR STARTING A BUSINESS
lack of salaried employment
Pressure groups
More control on work
Public-private cooperation (PPC)
non-profit organisations with the aim to raise money for ‘good’ causes, and draw attention to the needs of disadvantaged groups of society
wants to set their own working hours to accommodate the needs of their families.
Develop a new business idea
Higher earning potential avaliable
circles of people that attempt to influence decision makers in politics, business and society
occurs when the government creates a commercial partnership with the private sector to provide certain goods or services
Different types of Stakeholders
1.2
Lack of funds
Strong competitors
Recruiting qualified personal
Governments regulate organisations in order to protect the public interest; governments also enforce laws and reprimand companies when necessary. In addition, governments, particularly local governments, are dependent upon companies to provide tax revenues and employment.
Lack of management skills
Advantages
• Shares can be sold to the public.
• Limited liability.
• Easier to raise loans from banks.
• Because of their size, they can dominate
the market.
A vision statement is an organization’s long-term ambitions that it hopes to realize in the future.
click to edit
A mission statement is a written expression of an organization’s purpose and reason for being.
Strengths, Weaknesses, Opportunities and Threats
click to edit
click to edit
Capital
Labour
Entrepreneurship
Employees include individuals who work for the company but who are not responsible for managing other employees. Like managers, employees are motivated by compensation, benefits, job security, and working conditions.
INPUTS IN BUSINESS
Raw material
Funds
Human (Labour)
OUTPUTS IN BUSINESS
Physical (white and brown goods)
Services (Education, healthcare)
funds needed to set up and invest in a business and keep it running on a daily basis
the natural resources for a business to be set up and for the production of goods and services, it can also be the place where business is conducted
click to edit
Shareholders are the owners of the company. Shareholders invest in a business in order to receive a return on their investment. They are therefore primarily concerned with the company’s profitability. Profits will allow shareholders to receive a return on their investment
Goods are physical and tangible (house, food)
1.6
click to edit
click to edit
A business is any organization set up to provide goods and services to the consumers
The human resources, the people needed to run a business, including managers and employees
Services are intangible with no physical properties (education etc)
Customers include both individuals and other businesses that purchase the output of the organisation. They demand good service and quality products that are also safe and are sold at a reasonable cost.
Enterprise is set by entrepreneurs who take risks to establish businesses and drive them forward.
Strengths and weaknesses are internal, opportunities and threats are external
Suppliers are the individuals and businesses that sell goods and services to another organisation. They want to be paid fair and reasonable prices for these inputs.
click to edit
Unions exist to protect employees’ livelihoods and rights, and as such are important stakeholders for many organisations. Unions usually represent employees in many different firms; they may have more resources to defend employees’ interests than the employees in a single firm acting alone.
Banks lend organisations funds so they can invest and carry out their operations. Banks want to be sure that these loans are paid back, with interest, on schedule. They will therefore closely monitor the organisation's liquidity and solvency using financial accounts
Society as a whole, as well as the environment, is affected by corporate behaviour, as we learned in the unit on corporate social responsibility. When society’s interests are not adequately defended by government, pressure groups may step in to make sure corporate behaviour does not adversely impact the planet and its residents. Local communities might be considered as a subset of society at large. Local communities are most directly impacted by corporate decisions to locate in a given region, or to shut down their operations there.
Aims are goals an organization would like to accomplish. They may be somewhat broad, optimistic, and imprecise.
Consumer goods are goods requested by buyers/ purchased directly by individuals.
Objectives are concrete targets an organization sets for itself. They may be formulated in order to accomplish wider aims, and can be developed using the acronym SMART.
Competitors, unlike the previous stakeholders, a company’s competitors do not have an interest in its success. However, they are greatly impacted by its practices. At a minimum, companies expect their competitors to engage in fair competition by adhering to laws and ethical business practices.
A strategy is a plan, approach, or scheme for achieving an aim or objective.
Tactic. A tactic is an approach or scheme for achieving an aim or objective. Compared to strategies, tactics usually involve fewer resources and may be less risky.
click to edit
click to edit
1.5
STEEPLE ANALYSIS: Social, Technological, Environmental, Economical, Political
Pros of STEEPLE analysis
Simple and easy to use
reduce impacts of threats
Identify new opportunities
Encourages strategic thinking
Cons of steeple analysis
Oversimplification of information
Needs to conduct regularly
Time and cost considerations
Purpose of STEEPLE analysis
Use to analyze external environmental factors affecting business objectives and strategies
Use to evaluate the firm's opportunities and threats.