People in Business and Related Concepts

Chapter 1 - People in Business - Stakeholders

  • Definition: Stakeholders are individuals, groups, or organizations that have an interest in the activities and performance of a business. They can affect or be affected by the business’s operations, objectives, and policies.

  • Types of Stakeholders:

    • Internal Stakeholders: Employees, managers, owners

    • Examples: A company's CEO, factory workers, the sole proprietor of a small shop.

    • External Stakeholders: Customers, suppliers, creditors, community, government

    • Examples: Shoppers buying goods, banks lending money, local residents affected by a factory's operations, the tax authorities.

  • Types of Relationships

    • Relationships can be formal or informal depending on the nature and depth of interaction among stakeholders.

    • Importance of maintaining healthy relationships for business success.

  • Legal Contract

    • Elements of a Legal Contract:

    • Offer: A clear proposal presented by one party.

      • Example: A car dealership offers to sell a specific car for 20,000$.

    • Acceptance: Agreement by another party to the terms of the offer.

      • Example: A buyer agrees to purchase the car for 20,000$.

    • Consideration: Something of value exchanged between the parties (e.g., money, services).

      • Example: The buyer promises to pay 20,000, and the dealership promises to transfer ownership of the car.

    • Capacity: Both parties must have the legal ability to enter a contract.

    • Legality: Subject matter of the contract must be legal.

    • Termination of Contracts:

    • Contracts can be terminated by mutual consent, completion of contract terms, or breach of contract.

    • Remedies for Breach of Contract:

    • Damages: Monetary compensation.

    • Specific performance: Court order to fulfill terms of the contract.

    • Rescission: Cancellation of the contract.

Chapter 2 - Consumer Conflict

  • CCPC (Competition and Consumer Protection Commission)

    • Role: To promote and protect consumer welfare and ensure fair trading.

    • Example: Investigating a company for misleading advertising about the benefits of its product.

    • Functions include enforcing laws related to consumer protection and ensuring market competition.

  • Sale of Goods and Supply of Services Act 1980

    • Key Elements:

    • Goods must be of satisfactory quality, fit for purpose, and as described.

      • Example: A new toaster that stops working after one week is not of satisfactory quality.

    • Right to a refund if goods are defective or not as described.

  • Consumer Protection Act 2007

    • Focuses on unfair commercial practices, misleading advertising, and provides greater protections for consumers.

  • The Small Claims Procedure

    • A simple, cost-effective way for consumers to resolve disputes with traders over amounts up to a specified limit without legal representation.

    • Example: A consumer can use this procedure to claim a refund for a faulty TV that cost 500$ rather than going through a full court case.

Chapter 3 - Industrial Relations

  • Factors Leading to Industrial Relations

    • Include economic conditions, management practices, the legal environment, and the role of trade unions.

  • Trade Union

    • Definition: An organization of workers formed to protect their rights and interests.

    • Example: The Irish National Teachers' Organisation (INTO) represents primary school teachers.

    • Functions: Negotiating wages, ensuring worker rights, and representing members in disputes.

  • Non-legislative Solutions

    • Solutions for conflicts that do not involve formal legal action or legislation, such as mediation and negotiations.

    • Example: A manager and an employee discussing a workplace issue directly, or bringing in an independent mediator to facilitate talks between a union and management.

  • Industrial Relations Act 1990

    • Legislation that governs the relationship between employers and employees.

    • It includes provisions for collective bargaining and dispute resolution.

  • Types of Industrial Action

    • Strikes, work-to-rule, go-slows, and picketing.

    • Examples: Nurses going on strike for better pay and conditions; teachers doing a 'work-to-rule' where they only perform duties strictly outlined in their contract; workers picketing outside their factory to raise awareness of a dispute.

  • Impact of Industrial Action on Stakeholders

    • Positive and negative impacts on employees, employers, customers, and the broader economy.

  • Unfair Dismissal Act 1977-2015

    • Protects employees from being dismissed without just cause or due process.

    • Example: An employee is dismissed because they reported a health and safety violation at work, which would likely be deemed unfair dismissal.

    • Employees have the right to challenge their dismissal in a tribunal.

  • Redress for Unfair Dismissal

    • Remedies available include reinstatement, compensation, and other awards.

  • Employment Equality Act 1998-2015

    • Prohibits discrimination in the workplace on various grounds, promoting equality in employment.

    • Example: An employer refuses to hire a qualified candidate solely because of their age or gender.

  • Workplace Relations Commission (WRC)

    • Body established to promote good workplace relations and to provide a forum for the resolution of disputes.

    • Example: The WRC mediates a dispute between an individual employee and their employer over annual leave entitlements.

  • The Labour Court

    • An independent tribunal in Ireland that addresses disputes regarding workers’ rights, trade unions, and employers.

    • Example: The Labour Court issues a recommendation on a collective pay dispute between a large employer and a trade union.

Unit 5

Chapter 14 - Identifying Business Opportunities

  • Internal and External Ideas

    • Internal Ideas: Innovations developed from within the organization, often through R&D.

    • Example: A tech company's research and development department invents a new feature for its software.

    • External Ideas: Concepts sourced from outside the organization, like market trends and customer feedback.

    • Example: A restaurant notices a growing trend for vegan food and decides to add more plant-based options to its menu.

  • New Product Development

    • The process of bringing a new product to market, including idea generation, concept testing, development, and launch.

Chapter 15 - Business Start Up

  • Challenges When Starting a New Business

    • Access to finance, regulatory requirements, market competition, and skill shortages.

    • Example: A new cafe struggling to secure a bank loan or finding it difficult to compete with established chains.

  • Production Methods:

    • Job Production: Custom-made products tailored to individual customer requirements.

    • Example: A bespoke tailor making a custom suit for a client; a baker creating a unique wedding cake.

    • Batch Production: Manufacturing a collection of similar items in a single production run.

    • Example: A bakery producing 100 loaves of sourdough bread in one morning; a furniture maker producing 50 identical chairs.

    • Mass Production: Producing large quantities of standardized products.

    • Example: Car manufacturing assembly lines; bottling plants producing thousands of soft drinks per hour.

  • Business Plan

    • A detailed document outlining the business’s objectives, strategies, and financial projections.

    • Key uses include attracting investors, securing loans, and guiding operations.

  • Use of the Business Plan for Various Stakeholders

    • Investors: To assess risk and return.

    • Employees: To understand company goals.

    • Suppliers: To gauge stability and order volume.

  • Break-Even Analysis

    • A calculation to determine the level of sales at which total revenues equal total costs.

    • Formula:

      ext{Break-even point (in units)} = \frac{ ext{Fixed Costs}}{ ext{Selling Price per Unit} - ext{Variable Cost per Unit}}

    • Example: If fixed costs are 10,000, selling price per unit is 20$, and variable cost per unit is 10$, the break-even point is 10,000 / (20 - 10) = 1,000$$ units.

Chapter 16 - Market Analysis

  • Market Research

    • Field Research: Gathering firsthand data directly from consumers (e.g., surveys, interviews).

    • Example: Conducting face-to-face interviews with potential customers at a shopping mall to understand their preferences.

    • Desk Research: Analyzing existing data and reports to draw insights about the market.

    • Example: Studying government census data, industry reports, or competitor company financial statements.

  • Market Segmentation

    • The process of dividing a broad consumer or business market into sub-groups based on shared characteristics, such as demographics, psychographics, and behavior.

    • Example: A clothing company segmenting its market by age group (e.g., teenagers, young adults) or by lifestyle (e.g., activewear enthusiasts, luxury shoppers).

  • Niche Market

    • A smaller, specialized market segment defined by unique preferences or needs.

    • Example: A business specializing in custom-made gluten-free, vegan wedding cakes; a magazine specifically for left-handed golfers.

  • Marketing Plan

    • A strategic roadmap that outlines the marketing efforts of a business over a period, detailing how to reach target markets and establish a competitive advantage.

Chapter 17 - The Market Mix

  • Product

    • Product Lifecycle: Stages a product goes through from introduction to decline, including introduction, growth, maturity, and decline phases.

    • *Example: A new smartphone model is introduced (introduction), gains rapid