1. Business Management - Intermediate 2Business Enterprise © Copyright free to Business Education Network members 2007/2008B104/078 – Bus Enterprise – Business in Contemporary Society 1

2. Business Management - Intermediate 2Business Enterprise © Copyright free to Business Education Network members 2007/2008B104/078 – Bus Enterprise – Business in Contemporary Society 2

3. Business Management - Intermediate 2Business Enterprise © Copyright free to Business Education Network members 2007/2008B104/078 – Bus Enterprise – Business in Contemporary Society 3

4. Business Management - Intermediate 2Business Enterprise © Copyright free to Business Education Network members 2007/2008B104/078 – Bus Enterprise – Business in Contemporary Society 4 BUSINESS ENTERPRISE Business in Contemporary Society Objectives The Role of the Entrepreneur Stakeholder

5. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 5 Business in Contemporary Society 3.Objectives 4.The Role of the Entrepreneur 5.Stakeholders B104/078 – Bus Enterprise – Business in Contemporary Society

6. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 6 3. Objectives All businesses will have objectives. These are things that the business needs and/or wants to achieve. Sometimes these are referred to as AIMS or GOALS. Businesses in different sectors will have some shared objectives and some different ones. B104/078 – BiCS – Objectives

7. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 7 Private Sector Objectives: To make a profit – profit maximisation They will need to achieve this in order to survive as a business. To provide a good quality service They will need to achieve this in order to beat competition and make profit. B104/078 – BiCS – Objectives 3. Objectives - continued

8. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 8 To grow – expand their business They may choose this so that they can dominate the market they are in. This will help them to control the market more eg charge higher prices. Private Sector Objectives - continued Social Responsibility A business that displays Social Responsibility (anti-pollution, against animal testing, donating to charity) are likely to attract more customers. B104/078 – BiCS – Objectives 3. Objectives - continued

9. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 9 Public Sector Objectives To provide a good quality service Consumers will expect a good quality service because their taxes pay for these services. Social Responsibility Public sector businesses have a duty of care and responsibility to the society they serve. B104/078 – BiCS – Objectives 3. Objectives - continued

10. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 10 4. The Role of the Entrepreneur The entrepreneur is the business person who: thinks up good business ideas. combines the factors of production (resources) in order to produce/provide goods and services – Land, Labour, Capital and Enterprise. is willing to take risks (invest in a business idea which may not be successful). B104/078 – BiCS – The Role of the Entrepreneur

11. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 11 5. Stakeholders This term refers to individuals and organisations that have an interest in a business organisation succeeding. ie competitors are NOT stakeholders. Stakeholders can also influence an organisation. Internal Stakeholders are: STAKEHOLDERINTERESTINFLUENCE Owners to make profit to survive personal satisfaction to create a good reputation make all the decisions which will affect the business B104/078 – BiCS – Stakeholder

12. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 12 STAKEHOLDERINTERESTINFLUENCE Managers job security Promotion make decisions which will affect the business. Employees job satisfaction job security work hard to increase productivity industrial action Shareholders a return on their investment an increase in share price sell their shares vote at the AGM 5. Stakeholders - continued B104/078 – BiCS – Stakeholder

13. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 13 External Stakeholders are: STAKEHOLDERINTERESTINFLUENCE Customers getting value for money buying a quality product and service can become a regular and loyal customer can choose to shop elsewhere can complain Suppliers continuing to supply the business encouraging further sales increase or decrease prices offer discounts alter the quality of the product/service 5. Stakeholders - continued B104/078 – BiCS – Stakeholder

14. Business Management - Intermediate 2Business Enterprise – Business in Contemporary Society © Copyright free to Business Education Network members 2007/2008 14 STAKEHOLDERINTERESTINFLUENCE Banks to sell their products (eg insurance) to lend money to make sure that loans can be repaid to refuse lending alter the terms of a loan Government that taxes are paid and in the correct amount that businesses are adhering to legislation can force business to change according to current and new legislation. Local community that the business displays social and corporate responsibility protest against activity causing bad publicity. 5. Stakeholders - continued B104/078 – BiCS – Stakeholder