Business Foundations

UNIT 3 AOS 1

Sole Trader

one owner

Partnership

two to twenty owners

Private Limited Company

a business structure that is a seperate legal entity, owned by 1-50 shareholders and in the private sector

Public Listed Company

a seperate legal entity, can have unlimited amount of shareholders, which are sold on the stock exchange

Government Business Enterprise

owned by the government that aims to make a profit while providing a service

Social Enterprise

primary aim of benefiting the community and environment, profit surplus is often redirected back into the business to help further causes

Business Objectives

objectives are goals that provide direction for actions to be achieved within a given time

To make a profit

business want to maximise revenue and minimise expenses

To increase market share

to maximise the proportion of sales held by one business in a certain industry compared to competitors

To fulfil a market need

producing products that help close a gap in the market, that is not currently being satisfied for customers

To fulfil a social need

helping the community and environment in some way that is not being adequately addressed

To meet shareholder expectations

aiming to maximise their return on investment through the businesses making a profit and pass on the higher dividends

To increase efficiency

the aim to improve how well a business uses its resources such as time, labour and raw materials to reduce waste

To increase effectiveness

the goal of improving the extent to which a business achieves their stated short-term and long-term objectives such as profit and sales

Stakeholders

is any person or group who has a vested interest in a business and can be affected by the business

Owners

people who organise business decisions

Managers

employee who runs or manages a part of the business

Employees

to aquire a payment or benefit

Customers

to purchase the products or use the service

Suppliers

sell resources to a business

General Community

local people, within the area

Management Style

refers to the behaviour, attitude and communication styles of the manager when they work or interact

Autocratic

involves centralised decision making with one-way communication

Persuasive

involves centralised decision making with one-way communication however the manager explains the reasoning behind the decision

Consultative

involves centralised decision making with two-way communication where employees are asked for input prior to the decision being made

Participative

involves decentralised decision making with two-way communication

Laissez-faire

Managers set overarching objectives and deadlines, where employees work autonomously and choose how they go about achieving those goals

The nature of task

the type of work, the strategic, tactical or operational level at which is occurring

Time

the urgency of the situation based on the time available and how quickly a response is required

Experience of employees

the amount of knowledge or previous practise in their roles

Manager preference

the inclination of the manager themselves as to the level of communication and involvement employees have in decision-making

Communicating

the two-way process of sending and receiving information in a clear and understandable manner

Delegating

the transfer of authority and responsibility from a manager to an employee to carry out specific activities

Planning

the systematic process of establishing a business’ direction or goals for the future and strategies by which to achieve them

Decision-making

the process of identifying a specfic course of action in a fair and timely manner

Interpersonal

skills used when interacting with others to be able to build relationships and team rapport

Corporate Culture

refers to the shared values and beliefs of the people within a business

Offical Corporate Culture

a business shared values and beliefs formally expressed in its written statements created by senior manager

Real Corporate Culture

the unofficial, unwritten or actual shared values and beliefs of those within the business which could be reflected by how the staff dress, use language and treat their colleagues