Definition of Business People in Business Interest groups Stakeholders Relationships – co-operative, competitive
Definition of Business Business is about people and organisations Producing goods and services Supplying them to consumers Every business is a producer Most are commercial – sell for profit
Think of a Business You Know Producing Goods Services
Business Commercial Bank Supermarket Hairdressing salon …. Non-commercial Concern St Vincent de Paul Trocaire ….
People in Business Stakeholders – players in business And those affected by the decisions of the business Entrepreneurs Investors Suppliers Service Providers Employees Consumers Government …. Can you think of others
Relations: http://www.nytimes.com/2012/08/27/technology/a pple-samsung-case-muddies-future-of- innovation.html http://www.nytimes.com/2012/08/27/technology/a pple-samsung-case-muddies-future-of- innovation.html Apple Vs Samsung Competitors – Samsung breach Apple patents Suppliers – Samsung are major suppliers of technology to Apple Why didn’t they get an injunction when the samsung Galaxy appeared first?
Entrepreneur Uses Initiative to bring resources together to setup a business Resources = Capital, Premises, Equipment, Employees, Skills/Expertise, new idea/product design … Factors of Production: CELL: Capital, Enterprise, Land, Labour Risk taker = probability of failure or success Motivation = Profit, employment, challenge, accolade, own boss etc
Examples Bill Gates and Paul Allen - Microsoft Michael Dell - Dell Computers Steve Jobs and Steve Wozniak - Apple Computers Jeff Bezos -Amazon Phil Knight - Nike Fred Smith - Federal Express
Think of Entrepreneurs you know Local Meere’s bucher O’Connors Bakery Global Juimmy Choo Mark Zuckerberg: Facebook founder
Homework 3/9/2012 Pg 15 Q1 Distinguish between commercial and non- commercial business Commercial – eg Bank They want to make a profit Non-commercial – eg Concern, Trocaire They are not in it for profit Pg 15 Q2 What is a stakeholder They are players in business For example: Entrepreneurs, Shareholders, Investors, Suppliers, Employees, Employers, Competition, Government, Public
Investors Investors risk their money in the business Owners Capital Venture capital Loan Capital Grants For example, Steve Jobs and Steve Wozniak, founders of Apple, started the company with $1,300 in personal capital when Steve Jobs sold his Volkswagen micro-bus and Steve Wozniak sold his Hewlett-Packard scientific calculator.
Finance Owners Capital Savings Family Friends Debt Financing Borrowings Security Venture Capital Share in business Dragons Den Grant Aid County Enterprise Board Enterprise Ireland
Suppliers Business needs raw materials or products to produce their own products or service Supplies needed at the right time, place, quality, quantity JIT Supplier wants good price, payment and repeat orders
Homework 4-9-12 Q3 Identify two types of investor in a business Q4 Explain the role of an entrepreneur in business
Consumers Wants/Needs Quality Low Price Service Choice Convenience Consider goods that address each
Customer Vs Consumer Customer Someone who buys something eg Buy a bike Consumer Use the product or service Eg given a bike as a present and use it Both must be satisfied by the business
The Government Represents the general public Wants business to: Employment Provide a range of goods and services Create wealth Pay tax – Income tax, corporate tax Collect tax – VAT, PAYE Observe law Provides the business with: Training – FAS Advice – CEB, Enterprise Ireland Grant assistance Transport Telecommunications Infrastructure
HW 5-9: Ennis CC Stakeholders Ennis CC Who are the stakeholders?
Interest Groups An organisation which represents a particular group with similar needs/objectives Lobby group – pressure group - persuading decision makers in government
Interest Groups Business Associations IBEC IBEC ICTU ICTU Chamber of Commerce Chamber of Commerce ISME ISME Trade Associations ITAA ITAA SIMI SIMI IFA IFA Other CAI CAI Residents associations Environmental groups
Relationships StakeholderOffersWants EntrepreneurInitiative Determination Skills Ideas Risk Finance Success Profit InvestorMoney Capital Profit Supplier/Service Provider Good quality Reliability Competitive prices Profitable prices Regular business Payment on time
Relationships StakeholderOffersWants EmployeeGood work Reliability Interest and commitment Skills & Qualifications Good pay and conditions Secure job Promotional Opportunities EmployerGood pay and conditions Promotional opportunities Job security Training Skills/Qualifications Good work Reliability Interest and commitment ConsumerMoney (Pays the price)Good quality Good service Low price GovernmentGrants Low tax rates Infrastructure Jobs Tax Revenue Goods and Services
Co-operation Vs Competition Between Stakeholders: eg Investor and Entrepreneur Co-operation – need to work together to get what they want eg Entrepreneurs and Investors work together to make Profit Competition – have different interests at play – eg Investor wants large share in the business and profits, minimum risk. While the Entrepreneur give away very little share in the business and wants to take risk eg Dragons Den
Co-operation Vs Competition Between Business and its Stakeholders: eg Business/Employees Co-operation: employees participate in training to upskill, earn more, have greater job satisfaction that benefits the business Competitive: Business needs to keep wages costs to a minimum and employees want to maximize wages
Co-operation Vs Competition Between Businesses Co-operation: Chamber of commerce Competitive: Dunnes Vs Tesco
Ms Moroney covering Conflict and Resolutions and other legislative areas