Business Studies/ Business and People

Stakeholder Interests

All stakeholders have different types of interests

Customers - Price , Quality , Opening hours

Employess - Pay , Working Conditions , Job Security 

Government - Enviroment , Competiton 

Shareholders - Profit , Share price , Local Community , Job , Saftey 

Suppliers - Price 

Banks - Repayment of loans 

Business Objectives

Mission Statement - This is a summary of what a business is aiming to acheive 

Survival - To keep going and survive as a business even when sales are poor

Profit - When income is more than money spent

Growth - Increase the number of shops /  selling more goods

Break even - Cost and income are the same

SMART Objectives 

Specific

Measurable

Achievable 

Realistic

Timely

Enterprise - Something that is a part of a partiuclar persons character, They have an enterprising personalty and the ability to build and do well within a business

Entreprenuer- A person who has many if not all of the enterprsing qualities.

Primary Sector- The word primary means first. In business activity the primary sector is the first part of production for example Farming and Mining 

Secondary Sector - Business in the secondary sector will use the raw material from the primary sector and manufature products. 

Tertiary Sector - This is the third stage of production,  The tertiary sector uses manufactured materials and sells them in store. 

Wheat - Flour - Bread - Sold in shop

Primary Secondary Tertiary 

Sole Trader -  A soletrader is an idivual owns and runs a business on their own. A sole trader will have unlimited liabilty. Unlimted liabilty is when the own isresposnible foor everything and can lose  everthing inlcuding house car.

Parntership - A partnership is a type of ownership which can have between 2 - 20 partners , a partnership will have limited liabliably . Unlike unlimited liabilty Limited Liablty you can only lose what you put in.

Limited Company - Is a business that is owned by its shareholders who have bought shares from the company ,  run by directors and has a seperate leagl identity from its owner. A certificate of incorporation must be issued before the business can begin trading as a limited company.

Public limited companies and Private limited companies are both types of limited companies.

Multinational Company - Is a large company which operates around the world.

Co - operatives - Business owned and run by the workers. Co-operatives are not a charity therefore run to make a profit, they also belive that nobody should be payed more than anyone else therefore they have no bosses. 

Social Enterprise - These are businesses/ charites that operate for the good and benefit the communtity. They can fuction for profit or not for a profit as long as the business continues to benefit the communtity or a social group.

Charity - A charity is a non-profit organisaton set up to provide help and raise money for those in need. Any profit made is called surplus not profit as charities dont run to make profits

Footloose - means a business doesnt have to set up in a certain location to do well

Merger - This takes place when two or more businesses agree to join together to become one larger business. 

Take-over - This takes place when one business buys control of another, buying enough shares to out vote shareholders

Internal recruitment - Recruiting employees from within the businesses 

External Recruitment - Recruiting employees outside the business 

Recruitment Agency - Specialist agencies in a specfic part of the job market for example finance , banking.

Employment agency - Anyone can sgn up even if you have no or very little qualifcations however you work for the agnecy not the company.

A contract of employment - biding agreement between the employer and the employee.

Express Terms - Terms that are clearly stated in the contract

Implied Terms - Terms that are not written down because they are deemed as obvious

On the job - Training in the work place

Off the job - Training outside the work place 

Induction Training - Introdcuing a new employee to the new work place 

Appraisal - Is making a judgement about an employees performance within a business over a period of time. Targets may have been achieved.

Piece Rate - Where an employee is paid for each item that they complete/ make.

Overtime - This is where an employee is paid at a higher rate to persuade them to work extra hours 

Commision - This is paid to employees who sell things. They are paid a certain percentage of each item they say on top of their wage.

Bonus - This is extra money paid to an employee for meeting their target

Salary - This is where a business agrees to pay an employee a set amount each year.

Time Rate - This is where an employee is paid an amount of money for the amount of hours they have worked

Fringe Benefit - This is when a business will provide activities or facilities that employees can use for free.

Profit sharing - A plan that gives employees a share of the profit on top of their wage.

Equal Pay - To make sure women and men are paid the sane price for the same job

Race Relations - To make sure people from different ethinc backgrounds gets paid same price for the same job

Sex Discrimation - To stop Men and Women being treated differntly in the work place

Health and Safety - This law makes it the responsibilty of the employer to protect workers in the work place

Minimum Wage - This law was introduced to stop employers exploting workers . It applies to people 18+ 

Employment rights - Employers must give employees a contract of employment within 2 months of them working.

Disability - This law was introduced to give an equal opportunities to disbaled people. 

Trade Unions -  A group of people you can join who help fight for your rights at work

TUC - Trade Union Congress -  A federation of trade unions in the UK repsenting the majority of trade unions 

Industrial Actions - Refers to the action workers can take to try and and acheive what they want from the employer. The types of industrial action are:

 Strike - All workers stop work for a period of time

 Overtime ban - do not work extra hours

 Work to rule - Only does what is required from them

Business Studies/ Business and People

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