People in Business

1. People in Business Unit 1

2. Objectives of this section • What is Business? • Who are the People in Business? • Interest Groups in Ireland • Stakeholders • Relationships in Business: Co-operative and Competitive.

3. 1. Entrepreneurs • A person who sets up a business is an entrepreneur

4. 2. Investors • Investors give financial support to entrepreneurs. They take the financial risk. • Invest big, make big • Invest big, lose big

5. 3. Consumers • Consumers purchase goods and services which are provided by entrepreneurs.

6. 4. Producers/Suppliers • Producers manufacture goods for the market and supply them to the consumer

7. 5. Employers • Employers hire people to work for payment • Employers have rights and responsibilities

8. 6. Employee • Employees work for their employers and carry out the tasks given to them in return for wages.

9. 7. Service Provider • This is a firm or individual who provides a service to others for use in their business or personal life. • Banks, insurance companies • Communications • Marketing • Transport

10. 8. Interest Group • An interest group is an organisation that acts as a representative body for a group of people with a common interest.

11. People in Business • What is a stakeholder? • Any individual or group, that has a stake in the business. • Who do you consider a stakeholder in a business? • What is the difference between a shareholder and a stakeholder?

12. Analysis of Impact on Stakeholders

13. Analysis of Impact on Stakeholders

14. Stakeholders Wants V’s Offers

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44. Case Study • Jack Welch – ex-CEO of GE (General Electric) writes an opinion piece on ‘whose company is it?’ • Read the following document, and highlight five key points that ‘Neutron Jack’ makes.

45. Case Study • Read the two documents and write a 300 word opinion piece with the following heading • “who is a company for – not legally speaking, but philosophically? Some people say it belongs to the shareholders, others to its employees. Still others say a company exists for its customers’ sake. What do you think?” - Tomohiro Horibe, Saitama, Japan

46. Relationship between Stakeholders The relationship between stakeholders in a business may be described as being either co-operative or competitive. • Co-operative: • Here, a harmonious relationship exists between the stakeholders because they are in agreement with each other. • Competitive: • Here, a difficult relationship develops between the stakeholders because they are in disagreement with each other • Dynamic, and Dependant

47. Relationship between Stakeholders • Investor and Entrepreneur • Co-operative Relationship: • Can rely on each other: This is when the entrepreneur relies on the funds of the investor to start or expand his business and when the investor relies on the entrepreneur to provide a good investment. • Good return: This is when the investor is puts the investors funds to good use and the investor is happy with the return he is receiving on his investment

48. Relationship between Stakeholders • Investor and Entrepreneur • Competitive Relationship: • Problem with Return: This is when the investor is unhappy with the return he is receiving and threatens to withdraw his funds. • Problem with Restrictions: This is when the investor imposes restrictions on how the entrepreneur can use the funds. • Problem with Information: This is when the investor looks for more information about the business than the entrepreneur wishes to disclose.

49. Relationship between Stakeholders • Entrepreneur and Supplier • Co-operative Relationship: • Can rely on each other: This is when the entrepreneur relies on the supplier to provide goods or materials, on time and at a reasonable price, while the supplier relies on the entrepreneur to provide a market for his products.

50. Relationship between Stakeholders • Entrepreneur and Supplier • Competitive Relationship: • Problems with prices: This is when the entrepreneur tries to get goods at the lowest price and best terms, while the supplier will try to maximise prices and terms in his favour. • Problem with delivery: This is when delivery deadlines are missed. • Problem with payment: This is when the supplier does not get paid on time. • Problem with quality: This is when the entrepreneur is unhappy with the quality of the materials received from the supplier.