2. Key Areas
• What is Business?
• Who are the stakeholders?
• How Business impacts its Stakeholders.
• Relationships in Business. (NB)
– Co-operative and Competitive
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3. What is Business?
Organisation set up to provide a good or service
to potential customers.
1. Commercial – Profit is the main objective.
2. Non-Commercial – Objective is to provide a
service. E.g. Bothar, Trocaire, Greenpeace,
GAA
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4. Who are the stakeholders in Business?
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5. Entrepreneur
An Entrepreneur takes the initiative and bears
the financial and personal risks in a new
venture. Taking the initiative means spotting the
gap in the market for a new product or service
and recognising that this gap can be exploited to
good advantage.
See handout 1
E.G …Coca Cola, Charge Card, Safety razor, Biro
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6. Investors
Generally hope to gain a return
3 Types of Capital:
• Equity Capital
• Debt Capital
• Grants
Investors take financial risk whereas Entrepreneurs take
commercial risk
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7. Employers
Hires another person to work in return for pay.
Do You rem’ from JC the dif between Work and Employment.
Employees
Recruited by business to assist in business in
return for pay
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8. Producers
Manufacture goods for the market
Suppliers
Supply raw materials needed by a producer
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9. Service Providers
Service providers are people/organisations
providing a service to the public or a business
Customers/Consumers
Purchase goods and services from a seller in
return for payment.
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10. Note
How do consumers benefit from producers
operating in competitive environment
• Cheaper products
• Improved Quality
• Choice and variety
• Better after-sale service
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12. Interest Groups
• Is an organisation representing a particular
body of people who have a common ‘interest’.
• Also called Pressure Groups
• E.g…ICTU lobbying Gov’ on wage levels,
taxation, and Government Policy.
• IBEC ISME CAI NCA
SIMI ITAA IFA IVA
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16. NB
Co-operative & Competitive
Relationships
Co-operative…
working together towards a common
goal/acting in a mutually beneficial manner.
(win/win)
Competitive…
Both go after the same thing but only one
gets it. Each tries to outdo or win over the other.
(win/lose)
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18. Note
Causes of Conflict in Business
• Directors Vs Managers
– Profit levels and use of profits
• Business Vs Customer
– Price, quality, aftersales service
• Leadership styles
– Autocratic…I don’t care what you think, just do it.
• Employer Vs Employee
– Wages, conditions, productivity
• Business Vs Suppliers
– Delivery, Quality, Credit, Discounts,
19. Non legislative Resolution
A non legislative approach to resolving conflict means
that the parties involved resolve their difficulties without
using a Law or an office set up under a Law.
Advantage: This approach if handled correctly can build
the relationship between the parties involved. They have
a better understanding of each others position and are
able to work in a more cooperative manner in the future.
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