PEOPLE IN BUSINESS

Business

Definition of BusinessPeople in BusinessInterest groupsStakeholdersRelationships – co-operative, competitive

Definition of Business

Business is about people and organisations

Producing goods and services

Supplying them to consumers

Every business is a producer

Most are commercial – sell for profit

Think of a Business You Know Producing

Goods Services

Business

Commercial Bank Supermarket Hairdressing salon ….

Non-commercial Concern St Vincent de Paul Trocaire ….

People in Business

Stakeholders – players in businessAnd those affected by the decisions of the

business Entrepreneurs Investors Suppliers Service Providers Employees Consumers Government ….Can you think of others

Relations:http://

www.nytimes.com/2012/08/27/technology/apple-samsung-case-muddies-future-of-innovation.html

Apple Vs SamsungCompetitors – Samsung breach Apple patentsSuppliers – Samsung are major suppliers of

technology to AppleWhy didn’t they get an injunction when the

samsung Galaxy appeared first?

Entrepreneur

Uses Initiative to bring resources together to setup a business

Resources = Capital, Premises, Equipment, Employees, Skills/Expertise, new idea/product design …

Factors of Production: CELL: Capital, Enterprise, Land, Labour

Risk taker = probability of failure or successMotivation = Profit, employment, challenge,

accolade, own boss etc

Examples

Bill Gates and Paul Allen - MicrosoftMichael Dell - Dell ComputersSteve Jobs and Steve Wozniak - Apple

ComputersJeff Bezos -AmazonPhil Knight - NikeFred Smith - Federal Express

Think of Entrepreneurs you know

Local Meere’s bucher O’Connors Bakery

Global Juimmy Choo Mark Zuckerberg:

Facebook founder

Homework 3/9/2012

Pg 15 Q1 Distinguish between commercial and non-commercial business

Commercial – eg Bank They want to make a profitNon-commercial – eg Concern, TrocaireThey are not in it for profit

Pg 15 Q2 What is a stakeholder They are players in businessFor example: Entrepreneurs, Shareholders, Investors,

Suppliers, Employees, Employers, Competition, Government, Public

Investors

Investors risk their money in the business Owners Capital Venture capital Loan Capital Grants

For example, Steve Jobs and Steve Wozniak, founders of Apple, started the company with $1,300 in personal capital when Steve Jobs sold his Volkswagen micro-bus and Steve Wozniak sold his Hewlett-Packard scientific calculator.

Finance

Owners Capital

Savings

Family Friends

Debt Financing

Borrowings

Security

Venture Capital

Share in business

Dragons Den

Grant Aid

County Enterprise

Board

Enterprise Ireland

Suppliers

Business needs raw materials or products to produce their own products or service

Supplies needed at the right time, place, quality, quantity

JITSupplier wants good price, payment and

repeat orders

Homework 4-9-12

Q3 Identify two types of investor in a business

Q4 Explain the role of an entrepreneur in business

Consumers

Wants/Needs

QualityLow PriceServiceChoiceConvenience

Consider goods that address each

Customer Vs Consumer

CustomerSomeone who buys something

eg Buy a bike

ConsumerUse the product or service

Eg given a bike as a present and use it

Both must be satisfied by the

business

The Government

Represents the general public

Wants business to: Employment Provide a range of

goods and services Create wealth Pay tax – Income tax,

corporate tax Collect tax – VAT, PAYE Observe law

Provides the business with: Training – FAS Advice – CEB,

Enterprise Ireland Grant assistance Transport Telecommunications Infrastructure

HW 5-9: Ennis CC Stakeholders

Ennis CC

Who are the stakeholders?

Interest Groups

An organisation which represents a particular group with similar needs/objectives

Lobby group – pressure group - persuading decision makers in government

Interest Groups

Business Associations IBEC ICTU Chamber of Commerce ISME

Trade Associations ITAA SIMI IFA

Other CAI Residents associations Environmental groups

Relationships

Stakeholder Offers Wants

Entrepreneur InitiativeDeterminationSkillsIdeasRiskFinance

SuccessProfit

Investor MoneyCapital

Profit

Supplier/Service Provider

Good qualityReliabilityCompetitive prices

Profitable pricesRegular businessPayment on time

RelationshipsStakeholder Offers Wants

Employee Good workReliabilityInterest and commitmentSkills & Qualifications

Good pay and conditionsSecure jobPromotional Opportunities

Employer Good pay and conditionsPromotional opportunitiesJob securityTraining

Skills/QualificationsGood workReliabilityInterest and commitment

Consumer Money (Pays the price)

Good qualityGood serviceLow price

Government GrantsLow tax ratesInfrastructure

JobsTax RevenueGoods and Services

Co-operation Vs Competition

Between Stakeholders: eg Investor and EntrepreneurCo-operation – need to work together to get

what they want eg Entrepreneurs and Investors work together to make Profit

Competition – have different interests at play – eg Investor wants large share in the business and profits, minimum risk. While the Entrepreneur give away very little share in the business and wants to take risk

eg Dragons Den

Co-operation Vs Competition

Between Business and its Stakeholders: eg Business/EmployeesCo-operation: employees participate in

training to upskill, earn more, have greater job satisfaction that benefits the business

Competitive: Business needs to keep wages costs to a minimum and employees want to maximize wages

Co-operation Vs Competition

Between Businesses Co-operation: Chamber of commerceCompetitive: Dunnes Vs Tesco

Ms Moroney covering Conflict and Resolutions and other legislative areas