People in Business Flashcards
Main Stakeholders.
- Entrepreneur.
- Investor.
- Employer.
- Employee.
- Manager.
- Producer.
- Supplier.
- Service Provider.
- Consumer.
- Government.
- Interest Groups
- Entrepreneur.
- Spots a gap in the market.
- Takes the financial and person risk of starting a business to earn a profit.
E.g.; Suzanna Jackson created her own beauty brand SOSUbySJ.
- Investor.
Investor:
- Invests money/capital.
- Investments help the business succeed.
- Investor will expect to receive a return.
E.g.; Banks and other investors give loans to entrepreneurs which they may expect to be repaid with interest.
- Employer.
Employer:
- Hires employees.
- Pays them a wage or salary.
E.g.; A barber may have to employ another barber to help run a busy barber shop.
- Employee.
Employee:
- Works for their employer in return for a wage.
- Protected by employment laws.
- Signs a contract of employment.
E.g.; Google enables employees to spend 20% of their time developing personal projects related to the business.
- Manager.
- Hired by someone to run the business for them.
- Arranges resources and makes decisions.
- Helps the business to succeed.
E.g.; Tim Cook of Apple is a CEO employed by a Board of Directors to run the business.
- Producer.
- Manufactures products.
- Use raw materials bought from suppliers.
- Create a finished product for sale.
E.g.; Cadbury buys milk from farmers.
- Supplier.
- Sells finished goods (stock) and partially finished goods/raw materials to businesses.
- Businesses will use these to create finished products or sell finished stock for resale.
E.g.; Insomnia Coffee receives coffee beans from a supplier to make coffee.
- Service Provider.
- Provides important services required by a business to run their operations.
- Electricity, heating and broadband.
- Accountants and solicitors.
E.g.; Deliveroo and Just Eat provide meal-delivery services for restaurants and outlets in exchange for a percentage of sales and fee per transaction.
- Consumer.
- Buys good and services sold by a business for their own personal use.
- Can help entrepreneurs by participating in market research.
E.g.; A consumer buying a can of cola from Tesco.
- Government.
- Sets rules and laws for business operations.
- Offers support via state agencies (Enterprise Office, LEO and IDA).
E.g.; Businesses pay tax on their profits to the government.
- Interest Groups.
- Groups representing groups of people with a common objective and viewpoint.
- Lobby decision makers to influence the decision making process.
- Other methods are used such as negotiation, campaigns, public protests, boycotting and legal action.
E.g.; ICTU represents most trade unions in Ireland which negotiates national pay agreements with the government.
Co-Operative Relationships.
- Stakeholders work together towards a common goal.
- Win-win relationship.
- Both make gains and are better off afterwards than they were beforehand.
Examples of Co-Operative Relationships (Purchasing Manager and Supplier).
- Purchasing manager may ask for the credit period to be extended due to cash flow problems.
- An increase in the credit period will build customer loyalty for future sales.
- Purchasing manager will also have time to raise some cash.
Examples of Co-Operative Relationships (Government and entrepreneur).
- The government could invest in export businesses through Enterprise Ireland.
- This will help the government by increasing the amount of exports sold from Ireland which would increase government revenue.
- This will also help businesses by providing them with capital.
