Transcript 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 noncommercial 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
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)
Stakeholders
Entrepreneur
Service
Provider
Consumer
Employer
Producer
Stakeholder
s in Business
Employee
Supplier
Investor
Government
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
Service Providers
 People or organisations that provide support services
to the business
 Examples:
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Financial institutions provide accounts, loans, etc.
Insurance companies provide insurance cover
Solicitor provides legal advice
Electricity companies provide the business with power
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
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
Government
 Can effect businesses by the decisions they make, e.g.
laws, taxes, etc.
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
Employees
 Make or sell the goods and services for the business
in exchange for payment of a wage or a salary
Employers
 Hire employees to perform various tasks
Consumers
 A consumer is a person who buys goods and services
for their own use
Consumer v Customer?
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
Examples of Interest Groups
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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
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)
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
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
Competition within businesses
 Employees compete with other employees for
promotion
 Employees look for increased wages but employers
want to keep costs to a minimum
Competition between businesses
 Two producers or service providers may compete on
prices, e.g. Ryanair and Aer Lingus
 Consumers benefit from lower prices
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