Any entity that can effect an organization or be effected by it.
Example are:
Employee in a company, manager ETC
Further divided in to group
Internal stakeholder;
Those who work in company. For example, employee, manager, director, ETC
Connected Stakeholder;
Those who can affect or be affected by the company and had occur or have occur any
transaction between them having a monetary value
Example: Supplier, costomer, bank, lendor etc
External stakeholders;
Those who can affect or be affected by the company and had not occur or have not occur
any transaction between them having a monetary value
For example , Government , environmental pressure groups and the general public.
Types of Company:
Public Limited Company:
Company which share are available for public on stock exchange
Private Limited Company:
Company which share are not available for public and usually
owned by family or limited peoples. Their Share can be not be easily transferred
Public Companies:
Company which share are available for public purchase on stock
exchange
Public sector Companies:
Companies which are owned by government
Co-operative Societies and mutual Association:
Co-operative Societies and mutual Association are formed for Society Benefit. It does not have
any shareholder to distribute profit
Example: Bank give loan on high interest and give low interest on saving instead of that If A
Mutual Association in which people invest their saving(sense there are not other shareholder to
proft distribute the interest given well be high from bank) and give loan on low interest from bank
such that it benefit both parties
SWOT Analysis:
It is used to identify strength to improve them and weakness to made them into strength (these are
found internally).Secondly to find Opportunity to take advantage of it and convert threat into
opportunity (these are found externally)
SWOT Full Form
S-Strenght
, W-Weakness
O-Opportunity
T-Threat
Term to know
Disseminator
It mean in management that a manager spread the information in the organization through formal
or informal channel
Goods types
Verblen goods are luxury good
Griffen good are necessity
Gross domestic product (GDP) – The value of the economy’s total output at a given price
level for a period.
Aggregate demand (AD) – The total expenditure in the economy for a period. It is
essentially the total demand in the economy.
GDP and AD are often used interchangeably and are equal in the long run.
AD = Consumption + Investment+ Government spending + (Total export – total import)
Aggregate supply – The real value of the total output an economy can produce in a period.
Economic cycle – The fluctuations in economic activity over time, characterised by states of
expansion and contraction.
The economic cycle is typically measured in terms of GDP growth.
Key Point
The interaction between aggregate demand (AD) and aggregate supply (AS) affects the state of
the economy, including inflation and unemployment.
For example, if AD increases (shifts to the right on the graph) without a corresponding increase in
supply, this leads to demand-pull inflation.
The intersection between AD and AS is the equilibrium GDP, which the economy is expected to
stabilise at.
Note that the equilibrium GDP may vary from the actual GDP of the country due to various factors.
A summary of the impact of each state of the economic cycle is shown
below.
conomic cycle Contraction Trough Expansion
stage Peak Recession, Depression, Growth,
Other names Boom Decline Slump Recovery
GDP growth Maximum Declining Minimum Increasing
Employment level Maximum Declining Minimum Increasing
Inflation Maximum Declining Minimum Increasing
Availability of credit High Declining Low Increasing
Market Confidence High Declining Low Increasing