The Business Environment

The Business Environment The GCSE course deals with how ICT is used in business You need to understand certain issues relating to the business environment Aims and objectives Criteria for judging success Stakeholders and their interests Business structure

Types of Business The UK is a mixed economy, with: Public sector organisations – non profit-making, run by (local) government Private sector – profit-making businesses Voluntary sector – e.g. charities We will mainly look at the private sector.

Aims and Objectives A company might have many aims: Survival Increased profits Greater market share Higher customer satisfaction Diversification Expansion

Measuring Success How can a company judge its success? Size Value Market share Reputation Customer satisfaction Profits and turnover Brand name recognition

Stakeholders Stakeholders are people who are affected directly by the operation of the business Internal – these are people inside the organisation, such as: Employees Governors External – these are people outside the organisation, such as suppliers, shareholders and members of the community

Stakeholders Who would be the stakeholders for: A restaurant? Customers Suppliers Waiters, chefs and other staff, etc. A hospital? Doctors, nurses and other staff Patients Pharmaceutical companies

Stakeholder Interests Who would be affected if the restaurant moved to Wales? Staff Suppliers Customers Neighbours who might be affected adversely by noise, lack of parking, etc.

Business Organisation There are different levels of responsibility in a business: Strategic – deciding on long-term plans Tactical – deciding what needs to be done to effect the long-term plans Operational – doing the work to make it happen! Who decided the restaurant would move to Wales? Who would find new staff and suppliers? Who would do the moving?