people in business Flashcards
what’s a business?
a business is an organization to provide goods and services to customers
who are the skateholders?
a business affect a lot of people, these people are called skateholders
who are the main skateholders?
-entrepeneur
-investor
-employer
-employee
-manager
-producer
-consumer
-supplier
-service provider
-interest group
who’s an entrepreneur?
an entrepreneur is a person who spots an opportunity and takes the initiative to set up a business to make money.
the entrepreneur takes the financial and personal risk.
eg: bill gates (microsoft)
who’s an employer?
an employer is a person who hires others to work for them. the employer reward the employee for work. this can financially with pay, bonuses and commission or non-financial with benefit in kind.
who’s an investor?
an investor is a person who gives money (capital) to the entrepreneur to set up and run a business.
he receives back the money with an interest (debt capital).
he can also have a share in the business (part ownership), he will receives the profits called “dividend”.
eg: bank of Ireland
who’s employee?
an employee is a person who works for the employer in return for a wage.
they carry out the essential tasks needed to make the business a success
eg: pilots
who’s a manager?
a manager is a person who runs and makes sure that the business achieves its gals.
a good manager must be able to motivate the stuff and comunicate efficiently with them.
eg: Michael o’Leary
who’s a supplier?
suppliers are the other firms that a business buys from (eg: stock)
suppliers provide the business with the goods and the other things it needs to be succesful.
eg: the bakery supplies the market with bread to sell.
who’s a consumer?
consumer is a person who buys goods or services for their own personal use. the consumer provides the entrepreneur with a market where they can sell their products. They also provide market research information about what they like and do not like about a product.
who’s a service provider?
a service provider is a business that offers a range of supports to an entrepreneur.
Service providers work in the tertiary sector of the economy
Eg: bank, an post, solicitor
who’s an interest group?
an interest group is an organization of people who come tighter and campaign for a common goal.
by joining forces, the group have more power, more money and more talent at their disposal so are more likely to be heard.
gives exemples of interest groups
-SIMI society of the irish motor industry, lobbied for a charge to car registration
-IBEC irish business and employers confederation
-ISME irish small and medium employers confederation
-ICTU irish congress of trade union, it represents almost all of trade unions in Ireland
-IFA irish former association
-ICMSA irish creamery suppliers association
-CAI consumer association of Ireland
which kind of relationship between the skate holder can exist?
-co- operative
-competitive
-dependent
-dynamic
describe a co-operative relationship
to co.operate means to act in a manner which is of mutual benefit to all concerned.
the parties in the business have the same objective and so they work together to achieve their goals.
a co.operative relationship is a “win-win” situation as it produces better result.
give exemples of a co-operative relationship
- investor give funding (capital) to entrepreneur who, in turn, keep them informed and rewarded
-many irish employees agreed to pay cuts in the recession in a bid to lower costs and hence prices, in a bid to survive. the employees in turn continued to have employment and wages.
-swatch and mercedes-benz formed a strategic alliance to develop the smart car
-in 2015 Ryanair, tag, Air France-kml, Lufthansa and easy jet joined forces to lobby the EU
-the body shop promotes the cause of amnesty international.
describe a competitive relationship
this means that one party in business wants to be more successful than another.
the parties have conflicting or opposing objectives
it is often called a “win-lose” situation as onlyvone can win.
give exemples of competitive relationships
-entrepreneurs wishing to reinvest the profits and pay no divided conflict with investor who wants a return and won’t therefore invest more capital
-produce may compete on the basis of price, quality or by introducing new and improved products
-employers and employees compete when employees want pay increases which the employer refuses in order to keep cost down.
-two employees complete for a promotion
-ryanair and aer ligus compete for a larger share of the market.
describe a dependent relationship
this means that the parties in business need each other in order to be succesful.
they cannot achieve their goals on their own.
they rely on the other party to provide them with what they need for sucess.
give an example of a dependent relationship
-producers and consumer are dependent on each other
-entrepreneurs and dependent on investor and vice versa.
describe a dynamic relationship
this means that the relationship between shareholders in business is constantly changing.
sometimes is a competitive relationship sometimes is a co-operative relationship
give an example of a dynamic relationship
-competing business in a town might work tighter once a year to help organize a festival e.g. rose of travel festival
-if employees buy shares in a business, than they become investors as well as employees
