People in Business
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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:
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
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