Studied by 3 people
Fuction of a business
Human reasources (HR), Marketing, Operations Managment, Fiance.
Key concepts
Creativity, change, ethics, and sustainability
What is the public sector
run by the government, everyone has access to stocks
What is the private sector
Run with a profit motive
Primary sector
Business that extract resources from the earth (Like fisharies, lumber farm, crop farming)
Secondary sector
Businesses that create/manufacture poducts (factories like clothing stores)
Tertiary sector
Businesses that provide a service (Retail, spas, etc)
Quaternarysector
Research based (Nasa)
Sole trader/proprietor
When there is only one owner. Adv: Full profit, Autonomy, easy and cheap to start. Dis. Adv: Unlimited liability (responsable for everything)
Partnership
When two or more people own a business. Adv: Specialization in functions. Dis Adv: Unlimited liability, shared profit
Private limited company
Owned by friends and family. Adv: Limited liability. Dis Adv: loss of control, conflict with shareholders,
Public limited company
Anyone can buy stocks. Adv. Limited liability Dis. Adv: loss of control, conflict with shareholders,
Social enterpirse
Orginazations focused on bringing about change
For-proftit social enterprise
Goal(Social and economic aim) is to generate profit to help the community (World Wildlife Fund raising money to help preserve species)
Non profit orginazation (NGO)
Operating in the private sector with the goal of helpong others and is not with the gov (like unicef)
Cooperatives (consumer)
Owned by customers who buy goods
Cooperatives (worker)
Owned by employees who work there
Vision statement
A dream or goal that explains where the business would like to be
Mission statement
The purpose of the business existence realistic gives direction. (No timeframe, guides decisions) Adv: Allows for evaluation, defines organization, core values, understood by all stakeholders, provides direction. Dis Adv: Very expensive, might not be supported by employees, very time consuming to develop
Social Corparate Responsibility
Businesses give back to the comminity. Done to improve image and reputation but it costs money.
Stakeholder
Any person intersted in performance of business (Ex. customers, employees)
Shareholder
Is a type of internal stakeholder; they invest in the business with hoopes the value grows.
Employee (internal stakeholder)
Is a type of internal stakeholder; that financial benifits like salary bonus, insurance, job security, etc
Dividends
Part of the company profits paid back to investers through capital gains(value of stocks incressing)
External Stakeholders
supplies, customers, special intrest groups (trade unions, presure groups, local community)
Stakeholder conflict
Businesses cant please all stakeholders at the same time (Renumeration)
Renumeration
Benifits from a job in one thing (benifit package), more than one interest
