UNIT 1
1.1
Goods are physical products that are 'tangible', meaning they can be touched. Include items like
computers, TVs, clothing, furniture, vehicles and industrial equipment.
Services are intangible products that cannot be touched. When you purchase a service you usually go
home better off but empty-handed. Services include a wide array of things like hairdressing, tutoring,
accounting and car repair.
Main business functions
● Operations to determine whether and at what cost changes in production can be made
● Finance and accounts to determine how much finance will be required to implement the
changes
● Human Resources to determine if new or differently skilled workers will be required and how
they can be recruited or trained.
● Marketing to sell the right product, at the right price, at the right time, to the right customers.
Advertising
Primary sector: extracting raw material from the earth. Activities such as agriculture, fishing, mining
for minerals, oil...
Secondary sector: transforming raw materials into finished products. Construction, processing and
manufracting
Terciary sector: (sell) delivery of services such as education, health care, travel and tourism,
entertainment and home and car repair services
Quaternary sector: services related to the development and use of data and information, considered
as a subset of the terciary sector
Entrepreneurship is the process of setting up a new business and Entrepreneurs are the individuals
with the talent, perseverance and appetite for risk that lead them to create new organisations.
Intrapreneurship is the activity of entrepreneurship when it takes place within an established
organisation and Intrapreneurs are encouraged by their employers to take risks to develop new
products, processes, and services while retaining their status as employees.
Starting a new business!
A business plan is usually a written document that describes all the aspects of a new enterprise in
terms of the product or business idea, marketing, finance, operations, and human resources.
,1.2
Public sector organizations that are owned and operated by either the centralgovernemnt or local
governments or their agencies. They are usually dedicated to providing servcies to the public rather
than earning profit.
Private sector organizations that are owned by indicivuals or groups of individuals that are usually
cobtsrained by the necessity of earning profits in order to compensate thei owners for the investment
thet have been made in the organization.
Types of organizations
For-profit (commercial) organisations
- Sole trader: owned by a single individual. The owner is personally responsible for the debts of
the business
- Partnership: owned by two or more indivuals who are each personally responsible for the
debts of the business
- Corporation: owned by numerous shareholders who enjoy limited liability. Individual
shareholders aren´t responsible for the debts of the business.
Other organisations and partnerships
- Cooperative: owned by its members who come together to work towards a common interest.
Cooperatives are run democratically, with members having a say in important decisions.
- Microfinance providers make financial services available to individuals whose needs would
otherwise not be met by traditional financial institutions like banks.
- Public-private partnerships (PPPs): arrangements were by the punblic enlists the help of a
privarte sector organization in order to meet its objectives more efficiently. PPPs often involve
large infrasdtcuructre projetcs.
- Social enterprises: engage in business activity but that have also set themselves important
goals in terms of improving society or protecting the environment. They may be organised as
for-profit businesses, non-profit organisations, or cooperatives.
Non-profit organisations
- Non-governmental organisations (NGOs) usually state their purpose or mission as benefiting
society or the environment.
- Charities exist to benefit the public. Charities enjoy tax advantages under UK law.
1.3
Vision statement is a written expression of an organization's long-term ambitions that it hopes to
realise in the future. It is often an optimistic view of what the organization hopes to accomplish.
Mission statement is a written expression of an organization's purpose and reason for being. The
mission may be seen as a means of accomplishing the organization's vision.
Ethical objectives and corporate social responsibility (CSR)
Refers to corporations obligations to society at large as well as the environment. Setting ethical
objectives is an important component of developing CSR policies, they often involve areas:
- Labour relations: Employees may benefit from generous pay packages, pension and insurance
benefits, training an annual sick leave and holidays that exceed those required by law.
- Environment: Common objectives include reducing the production of waste and the
consumption of water, lowering the carbon footprint and sourcing ingredients and materials
produced, using “sustainable” practices that reduce harm to the environment.
- Community: They may also make in-kind donations, like contributing goods to local food
banks. Corporations may encourage or even require their employees to volunteer for local
organisations.
, - Supplier relations: They may, for example, refuse to work with suppliers who do not treat
their workers fairly or who do not respect the environment. The CSR also includes the
practices of their suppliers and subcontractors.
SWOT Analysis ANSOFF Matrix Analysis
1.4
Stakeholder is any individual or group that affects an organisation or is affected by it.
- Internal stakeholders
CEO → a chief executive officer, the highest-ranking person in a company responsible for taking
managerial decisions.
Managers → individuals who run the organisation which must create an environment where
employees can work together to meet these objectives.
Employees → individuals who work for the company but who are not responsible for managing other
employees.
Shareholders → owners of the company. They are sometimes considered external stakeholders
because in the case of large publicly owned companies they are generally not involved in the
day-to-day running of the company.
- External stakeholders
Customers → both individuals and businesses that purchase the output of the organisation, buy goods
or services from a shop or business.
Suppliers → individuals and businesses that sell goods and services to another organisation.
Governments → regulate organisations in order to protect the public interest, they also enforce laws
and reprimand companies when necessary.
Unions → protect employees, livelihoods and rights. They represent employees.
Banks → lend organisations funds so they can invest and carry out their operations.
Society → as a whole, as well as the environment.
Competitors → unlike the previous stakeholders that dont have interestsin its success. (Sometimes not
considered stakeholders).
1.1
Goods are physical products that are 'tangible', meaning they can be touched. Include items like
computers, TVs, clothing, furniture, vehicles and industrial equipment.
Services are intangible products that cannot be touched. When you purchase a service you usually go
home better off but empty-handed. Services include a wide array of things like hairdressing, tutoring,
accounting and car repair.
Main business functions
● Operations to determine whether and at what cost changes in production can be made
● Finance and accounts to determine how much finance will be required to implement the
changes
● Human Resources to determine if new or differently skilled workers will be required and how
they can be recruited or trained.
● Marketing to sell the right product, at the right price, at the right time, to the right customers.
Advertising
Primary sector: extracting raw material from the earth. Activities such as agriculture, fishing, mining
for minerals, oil...
Secondary sector: transforming raw materials into finished products. Construction, processing and
manufracting
Terciary sector: (sell) delivery of services such as education, health care, travel and tourism,
entertainment and home and car repair services
Quaternary sector: services related to the development and use of data and information, considered
as a subset of the terciary sector
Entrepreneurship is the process of setting up a new business and Entrepreneurs are the individuals
with the talent, perseverance and appetite for risk that lead them to create new organisations.
Intrapreneurship is the activity of entrepreneurship when it takes place within an established
organisation and Intrapreneurs are encouraged by their employers to take risks to develop new
products, processes, and services while retaining their status as employees.
Starting a new business!
A business plan is usually a written document that describes all the aspects of a new enterprise in
terms of the product or business idea, marketing, finance, operations, and human resources.
,1.2
Public sector organizations that are owned and operated by either the centralgovernemnt or local
governments or their agencies. They are usually dedicated to providing servcies to the public rather
than earning profit.
Private sector organizations that are owned by indicivuals or groups of individuals that are usually
cobtsrained by the necessity of earning profits in order to compensate thei owners for the investment
thet have been made in the organization.
Types of organizations
For-profit (commercial) organisations
- Sole trader: owned by a single individual. The owner is personally responsible for the debts of
the business
- Partnership: owned by two or more indivuals who are each personally responsible for the
debts of the business
- Corporation: owned by numerous shareholders who enjoy limited liability. Individual
shareholders aren´t responsible for the debts of the business.
Other organisations and partnerships
- Cooperative: owned by its members who come together to work towards a common interest.
Cooperatives are run democratically, with members having a say in important decisions.
- Microfinance providers make financial services available to individuals whose needs would
otherwise not be met by traditional financial institutions like banks.
- Public-private partnerships (PPPs): arrangements were by the punblic enlists the help of a
privarte sector organization in order to meet its objectives more efficiently. PPPs often involve
large infrasdtcuructre projetcs.
- Social enterprises: engage in business activity but that have also set themselves important
goals in terms of improving society or protecting the environment. They may be organised as
for-profit businesses, non-profit organisations, or cooperatives.
Non-profit organisations
- Non-governmental organisations (NGOs) usually state their purpose or mission as benefiting
society or the environment.
- Charities exist to benefit the public. Charities enjoy tax advantages under UK law.
1.3
Vision statement is a written expression of an organization's long-term ambitions that it hopes to
realise in the future. It is often an optimistic view of what the organization hopes to accomplish.
Mission statement is a written expression of an organization's purpose and reason for being. The
mission may be seen as a means of accomplishing the organization's vision.
Ethical objectives and corporate social responsibility (CSR)
Refers to corporations obligations to society at large as well as the environment. Setting ethical
objectives is an important component of developing CSR policies, they often involve areas:
- Labour relations: Employees may benefit from generous pay packages, pension and insurance
benefits, training an annual sick leave and holidays that exceed those required by law.
- Environment: Common objectives include reducing the production of waste and the
consumption of water, lowering the carbon footprint and sourcing ingredients and materials
produced, using “sustainable” practices that reduce harm to the environment.
- Community: They may also make in-kind donations, like contributing goods to local food
banks. Corporations may encourage or even require their employees to volunteer for local
organisations.
, - Supplier relations: They may, for example, refuse to work with suppliers who do not treat
their workers fairly or who do not respect the environment. The CSR also includes the
practices of their suppliers and subcontractors.
SWOT Analysis ANSOFF Matrix Analysis
1.4
Stakeholder is any individual or group that affects an organisation or is affected by it.
- Internal stakeholders
CEO → a chief executive officer, the highest-ranking person in a company responsible for taking
managerial decisions.
Managers → individuals who run the organisation which must create an environment where
employees can work together to meet these objectives.
Employees → individuals who work for the company but who are not responsible for managing other
employees.
Shareholders → owners of the company. They are sometimes considered external stakeholders
because in the case of large publicly owned companies they are generally not involved in the
day-to-day running of the company.
- External stakeholders
Customers → both individuals and businesses that purchase the output of the organisation, buy goods
or services from a shop or business.
Suppliers → individuals and businesses that sell goods and services to another organisation.
Governments → regulate organisations in order to protect the public interest, they also enforce laws
and reprimand companies when necessary.
Unions → protect employees, livelihoods and rights. They represent employees.
Banks → lend organisations funds so they can invest and carry out their operations.
Society → as a whole, as well as the environment.
Competitors → unlike the previous stakeholders that dont have interestsin its success. (Sometimes not
considered stakeholders).
