Nature of business and objectives

• Business- organization that combines inputs in processes to create outputs
• Entrepreneur- owner/manager of a business that brings together the other factors of production and undertakes risk by introducing new ways of making old products or new products in the hope of making a profit
• Primary Sector- cultivation of natural goods eg agriculture, fishing, mining
• Secondary Sector- manufacture of goods eg house building, car companies, ship building
• Terciary- distribution of goods and provision of services eg banks, transport 

• De-industrialization- number of people in primary sector has decreased since the INDUSTRIAL REVOLUTION, numbers working in secondary sector has decreased since the 1960's. These changes in economic structure is DE-INDUSTRIALIZATION.
• Finance-more people in terciary sector= more wages needed and more money to recruit primary and secondary workers.
• HR- less workers=less HR employees needed
• Marketing- more advertising needed for primary and secondary job vacancies.
• Operations Management- less operation managers will be needed because there will be less primary and secondary workers to manage.

• Service Based- decrease in primary secondary workers, more importing,decreased worforce available for businesses in first 2 sectors.
• Move from primary to secondary- primary sector firms need to invest in machinery and will see a decrease in job candates from school and their quality.

Sole trader- unlimited liability, controlled and owned by 1 person, need to register the business with the TAX AUTHORITIES (HER MAJESTY'S REVENUE AND CUSTOMS) long hours, hard work, need to be multi-skilled.

Partnership- DEED OF PARTNERSHIP, owned and controlled by 2-20 people, deed must follow the laws of the PARTNERSHIP ACTS and set out the rules by which the partnership will operate, easier to set up than a sole trader, unlimited liability unless the owners have taken advantage of the LIMITED PARTNERSHIP ACT (some partners have limited liability but the majority must have unlimited liability), must pay a REGISTRATION FEE through a solicitor.

Company- owned by SHAREHOLDERS, controlled by BOARD OF DIRECTORS, set up is hard as you need a MEMORANDUM OF ASSOCIATION ( set up by a solicitor)= includes: objevtives of the business, amount of share capital to be raised, voting rights of the shareholders. THE ARTICLES OF ASSOSIATION- info on the day-to-day running of the business. Memorandum of association and articles of association must comply with THE COMPANIES ACT. You must sign a STATUTORY DECLARATION to say you understand all of the COMPANY ACTS present and future. All documentation must be registered with teh COMPANY'S HOUSE, most directors also have shares, business has a SEPERATE LEGAL IDENTITY, specialize more than sole traders or partnerships, business functions have seperate DEPARTMENTS, shareholders have LIMITED LIABILITY.

Public Sector                                                               Private Sector

Owned and controlled by the government. Owned and controlled by private businesses.

Profit based

Vision Statement

(aspirational statement of what an organization would like to achieve in the long term future. It is a guide for future actions)

Mission Statement

(written declaration of a businesses core purpose and focus which remains unchanged)

Aims

(is something that will help a business's mission)

Objectives

(goal or target that will help to achieve an aim can be STRATEGIC OR OPERATIONAL)

Strategies

(somthing that will help a business achieve its objectives)

Tactics

(help business achieve their strategies)

Ethics are a set of values and beliefs which influence how individuals, groups and societies behave.

Ethical objective- statement concerning what a business should or should not be doing ethically. Helps them to achieve their aims

Help to:

• Increase sales and market share
• Self-satifying
• Sense of duty
• Improve reputation

Influenced by

• stakeholders
• co-operate culture

• Service Based- decrease in primary secondary workers, more importing,decreased worforce available for businesses in first 2 sectors.
• Move from primary to secondary- primary sector firms need to invest in machinery and will see a decrease in job candates from school and their quality.