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People in Business. Unit 1. Objectives of this section. What is Business? Who are the People in Business? Interest Groups in Ireland Stakeholders Relationships in Business: Co-operative and Competitive. 1. Entrepreneurs. A person who sets up a business is an entrepreneur. 2. Investors. - PowerPoint PPT Presentation
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PEOPLE IN BUSINESSUnit 1
Objectives of this section What is Business? Who are the People in Business? Interest Groups in Ireland Stakeholders Relationships in Business: Co-operative
and Competitive.
1. Entrepreneurs A person who
sets up a business is an entrepreneur
2. Investors Investors give
financial support to entrepreneurs. They take the financial risk.
Invest big, make big
Invest big, lose big
3. Consumers Consumers
purchase goods and services which are provided by entrepreneurs.
4. Producers/Suppliers Producers
manufacture goods for the market and supply them to the consumer
5. Employers Employers hire
people to work for payment
Employers have rights and responsibilities
6. Employee Employees
work for their employers and carry out the tasks given to them in return for wages.
7. Service Provider This is a firm or
individual who provides a service to others for use in their business or personal life. Banks, insurance
companies Communications Marketing Transport
8. Interest Group An interest
group is an organisation that acts as a representative body for a group of people with a common interest.
People in Business What is a stakeholder?
Any individual or group, that has a stake in the business.
Who do you consider a stakeholder in a business?
What is the difference between a shareholder and a stakeholder?
Analysis of Impact on Stakeholders
High Profi
ts
Shareholders
Management
Employees
Customers
Community
Groups
Environment
Producers
Analysis of Impact on Stakeholders
Low Profi
ts
Shareholders
Management
Employees
Customers
Community
Groups
Environment
Producers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees •Good pay and conditions•Secure employment•Opportunities to develop
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees •Good pay and conditions•Secure employment•Opportunities to develop
•Skills and qualifications•Hard work and motivation•Honesty and reliability
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees •Good pay and conditions•Secure employment•Opportunities to develop
•Skills and qualifications•Hard work and motivation•Honesty and reliability
Managers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees •Good pay and conditions•Secure employment•Opportunities to develop
•Skills and qualifications•Hard work and motivation•Honesty and reliability
Managers •Good pay and conditions•Secure employment•Laws that are easy to understand•Resources to do their jobs
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Entrepreneurs
•Profit and success•Finance and support•Skilled managers and employees•Minimal risk
•Goods and services•Employment and wages•Taxes•Share in profits•Interest on loans
Investors •Profit on investment•Possible share in the ownership
•Finance
Employers •Honesty•Reliability•Motivation and hard work
•Pay and conditions•Training•Promotional opportunities
Employees •Good pay and conditions•Secure employment•Opportunities to develop
•Skills and qualifications•Hard work and motivation•Honesty and reliability
Managers •Good pay and conditions•Secure employment•Laws that are easy to understand•Resources to do their jobs
•Management skills•Ability to lead, motivate and communicate with staff
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society •Local jobs•No damage to local community, wider society or the environment•Support and sponsorship
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society •Local jobs•No damage to local community, wider society or the environment•Support and sponsorship
•Favourable public opinion•Socially responsible brand image
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society •Local jobs•No damage to local community, wider society or the environment•Support and sponsorship
•Favourable public opinion•Socially responsible brand image
Government
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society •Local jobs•No damage to local community, wider society or the environment•Support and sponsorship
•Favourable public opinion•Socially responsible brand image
Government
•Public opinion on its side•Tax revenue for government•Goods and services for society
Stakeholders Wants V’s Offers
Stakeholder
Wants Offers in return
Producers •Reliable suppliers•Loyal customers•The highest possible prices•Profitable business
•Products of the right quality
Suppliers •Reliable customers•Payment on time•The highest possible prices•Profitable business
•Products and services
Customers •Quality goods and services•Fair and affordable prices
•Payment for goods/services•Loyalty and repeat business
Society •Local jobs•No damage to local community, wider society or the environment•Support and sponsorship
•Favourable public opinion•Socially responsible brand image
Government
•Public opinion on its side•Tax revenue for government•Goods and services for society
•Tax incentives•Grants, business advice and support•Infrastructure and services
Case Study Jack Welch – ex-CEO of GE (General
Electric) writes an opinion piece on ‘whose company is it?’
Read the following document, and highlight five key points that ‘Neutron Jack’ makes.
Case Study
Read the two documents and write a 300 word opinion piece with the following heading
“who is a company for – not legally speaking, but philosophically? Some people say it belongs to the shareholders, others to its employees. Still others say a company exists for its customers’ sake. What do you think?”- Tomohiro Horibe, Saitama, Japan
Relationship between StakeholdersThe relationship between stakeholders in a business may be described as being either co-operative or competitive. Co-operative:
Here, a harmonious relationship exists between the stakeholders because they are in agreement with each other.
Competitive: Here, a difficult relationship develops between
the stakeholders because they are in disagreement with each other
Dynamic, and Dependant
Relationship between Stakeholders1. Investor and Entrepreneur
Co-operative Relationship: Can rely on each other: This is when the
entrepreneur relies on the funds of the investor to start or expand his business and when the investor relies on the entrepreneur to provide a good investment.
Good return: This is when the investor is puts the investors funds to good use and the investor is happy with the return he is receiving on his investment
Relationship between Stakeholders1. Investor and Entrepreneur
Competitive Relationship: Problem with Return: This is when the investor is
unhappy with the return he is receiving and threatens to withdraw his funds.
Problem with Restrictions: This is when the investor imposes restrictions on how the entrepreneur can use the funds.
Problem with Information: This is when the investor looks for more information about the business than the entrepreneur wishes to disclose.
Relationship between Stakeholders2. Entrepreneur and Supplier
Co-operative Relationship: Can rely on each other: This is when the
entrepreneur relies on the supplier to provide goods or materials, on time and at a reasonable price, while the supplier relies on the entrepreneur to provide a market for his products.
Relationship between Stakeholders2. Entrepreneur and Supplier
Competitive Relationship: Problems with prices: This is when the entrepreneur tries
to get goods at the lowest price and best terms, while the supplier will try to maximise prices and terms in his favour.
Problem with delivery: This is when delivery deadlines are missed.
Problem with payment: This is when the supplier does not get paid on time.
Problem with quality: This is when the entrepreneur is unhappy with the quality of the materials received from the supplier.
Relationship between Stakeholders3. Employer and Employee
Co-operative Relationship: Can rely on each other: This is when the employee
relies on the employer to provide him with a job, while the employee relies on the technical or specialist knowledge of the employee.
Fair wage: This is when the employer pays a fair wage to the employee and offers bonus schemes, productivity deals and profit-sharing schemes as rewards.
Voice: This is when the employer gives the employee a voice through delegation, works council, directors etc
Relationship between Stakeholders3. Employer and Employee
Competitive Relationship: No pay rise: This is when the employee looks for a
pay rise, which the employer refuses to pay. Low work rate: This is when the employee becomes
lazy, his work rate slows down or there is a problem with absenteeism or lateness.
Lack of involvement: This is when the employees want to be involved in decision making but the employer fails to communicate with them.
Redundancy: This is when the employer needs to downsize the workforce and must let people go.
Relationship between Stakeholders4. Producer and Consumer
Co-operative Relationship: Reliable goods and services: This is when the consumer
relies on the producer to provide the goods and services he requires, and when the producer relies on the consumer to buy his goods to keep him in business.
Loyalty: When the consumer is happy with the goods supplied and the prices charged.
Good complaint procedure: When the producer deals with consumer complaints quickly and effectively.
Good Listening: When producers listen to consumers and act on their comments, suggestions and complaints.
Relationship between Stakeholders4. Producer and Consumer
Competitive Relationship: Price discrepancy: This is when the consumer looks
for low prices and high quality, while the producer wants high prices and low costs.
Bad service: This is when the producer provides goods of poor quality, late delivery or poor after-sales service.
Protest: When consumers become unhappy about some aspect of the business; eg. Pollution, child labour, and decide to boycott the products of the business.