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People in Business

People in Business. Unit 1. At the end of this topic you will be able to. Explain the differences between commercial and non-commercial businesses List and explain the stakeholders, with examples of each Explain what interest groups are

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People in Business

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  1. People in Business Unit 1

  2. At the end of this topic you will be able to... Explain the differences between commercial and non-commercial businesses List and explain the stakeholders, with examples of each Explain what interest groups are Explain the different types of relationships that can occur between the stakeholders in business List and explain the key elements in a contract

  3. Commercial v non-commercial businesses • A commercial business is one which has the aim of making a profit, e.g. Dunnes Stores, Ryanair, Apple • A non-commercial business is an organisation which exists for some other reason than making a profit, i.e. to provide a service e.g. charity (Focus Ireland), state agency (FÁS)

  4. Stakeholders

  5. Entrepreneurs An entrepreneur is a person who spots a gap in the market, takes the initiative to set up a business and takes the risk involved in setting up in business Click here for the Top 10 Irish Female Entrepreneurs Entrepreneur of the Year videos Too

  6. Service Providers • People or organisations that provide support services to the business • Examples: • Financial institutions provide accounts, loans, etc. • Insurance companies provide insurance cover • Solicitor provides legal advice • Electricity companies provide the business with power

  7. Producers Turn raw materials into finished products They enter into contracts with suppliers They try to make a profit by keeping costs low and prices competitive Example – Glanbia turns milk into yoghurt and cheese

  8. Suppliers Provides the raw materials required by producers They compete with other suppliers for contracts by offering inducements, e.g. discounts, credit, prompt delivery or free delivery Example – dairy farmer

  9. Government Can effect businesses by the decisions they make, e.g. laws, taxes, etc.

  10. Investors Investors provide finance or funding for a business In exchange, they expect a return on their money The greater the risk they take, the greater the return the expect Examples of investors include shareholders, banks, venture capitalists , the Government

  11. Employees Make or sell the goods and services for the business in exchange for payment of a wage or a salary

  12. Employers Hire employees to perform various tasks

  13. Consumers A consumer is a person who buys goods and services for their own use

  14. Consumer v Customer?

  15. What are Interest Groups? Interest groups represent the interests, views or goals of the various stakeholders They achieve results by applying pressure or lobbying decision makers Example: Society of the Irish Motor Industry (SIMI) successfully lobbied the Government to extend the scrappage scheme in for cars. Click here for article

  16. Examples of Interest Groups IBEC – Irish Business and Employers Confederation ICTU – Irish Congress of Trade Unions CAI – Consumers’ Association of Ireland IFA – Irish Farmers Association LVA – Licenced Vintners Association ITAA – Irish Travel Agent’s Association INOU – Irish National Organisation for the Unemployed

  17. Business Relationships Relationships between a business and its stakeholders can be either co-operative or competitive A co-operative relationship occurs when they work together towards a common goal in a mutually beneficial way (win-win) A competitive relationship occurs when both parties want the same thing but only one of them gets it (win-lose)

  18. Co-operation within a business Employees work in teams Employees and employers agree on wages and work conditions Producers listen to feedback from their customers Investors give funding to entrepreneurs who keep them informed and rewarded

  19. Co-operation between businesses Two or more companies may form a strategic alliance They will share skills, ideas, costs and profits Example: General Motors and Citroen jointly developed the Opel Corsa and Citroen C3 cars

  20. Competition within businesses Employees compete with other employees for promotion Employees look for increased wages but employers want to keep costs to a minimum

  21. Competition between businesses Two producers or service providers may compete on prices, e.g. Ryanair and Aer Lingus Consumers benefit from lower prices

  22. Review of People in Business In this topic you have learned about: Commercial and non-commercial businesses Stakeholders Interest groups Co-operative and competitive relationships in business

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