Post by Admin on Sept 7, 2017 19:15:35 GMT
Stakeholders
- Entrepreneur: A person who spots an opportunity in the market. They take the risk by setting up their own business to fulfill this opportunity.
- Investor: A person who provides the capital that is required by the entrepreneur in order to setup their business. In exchange, the investor expects a return on their investment with interest.
- Producer: A business that turns raw materials given by their supplier into finished goods. These goods are sold to consumers.
- Employer: A person who employs others to work for their company. They also provide the wages for the employees once they do a fair amount of work to earn them.
- Employee: A person who works for an employee to help them earn sales and profit. In exchange, the employees earns a fair amount of wages for the work they put in.
- Supplier: A business that provides the raw materials which the producer requires to finish or make their products.
- Service Provider: A group of people that provide support services to the business. For example, electricity companies provide the business with power.
- Interest Group: A group set up to represent the interests, views or goals of the various stakeholders. They achieve results by applying pressure or lobbying decision makers.
- Consumer: A person who buys goods and services off a business for their own use. In return, the business earns for a profit from consumers giving them money.
- Government: A Government can affect businesses by the decisions they make via laws and taxes.
Examples of Interest Groups
- IBEC: Irish Business and Employers Confederation
- ICTU: Irish Congress of Trade Unions
- CAI: Consumers' Association of Ireland
- IFA: Irish Farmers Association
Business Relationships
Co-operation within a business
Co-operation between businesses
Competition within a business
Competition between businesses
- Entrepreneur: A person who spots an opportunity in the market. They take the risk by setting up their own business to fulfill this opportunity.
- Investor: A person who provides the capital that is required by the entrepreneur in order to setup their business. In exchange, the investor expects a return on their investment with interest.
- Producer: A business that turns raw materials given by their supplier into finished goods. These goods are sold to consumers.
- Employer: A person who employs others to work for their company. They also provide the wages for the employees once they do a fair amount of work to earn them.
- Employee: A person who works for an employee to help them earn sales and profit. In exchange, the employees earns a fair amount of wages for the work they put in.
- Supplier: A business that provides the raw materials which the producer requires to finish or make their products.
- Service Provider: A group of people that provide support services to the business. For example, electricity companies provide the business with power.
- Interest Group: A group set up to represent the interests, views or goals of the various stakeholders. They achieve results by applying pressure or lobbying decision makers.
- Consumer: A person who buys goods and services off a business for their own use. In return, the business earns for a profit from consumers giving them money.
- Government: A Government can affect businesses by the decisions they make via laws and taxes.
Examples of Interest Groups
- IBEC: Irish Business and Employers Confederation
- ICTU: Irish Congress of Trade Unions
- CAI: Consumers' Association of Ireland
- IFA: Irish Farmers Association
Business Relationships
- Relationships between a business and its stakeholders can either be co-operative or competitive.
- A co-operative relationship occurs when they work together towards a common goal in a mutually beneficial way. This is a win-win situation.
- A competitive relationship occurs when both parties want the same thing but only one of them gets it. This is a win-lose situation.
Co-operation within a business
- Employees work in teams.
- Employees and employers agree on wages and work conditions.
- Producers listen to feedback from their customers.
- Investors give funding to entrepreneurs who keep them informed and rewarded.
Co-operation between businesses
- Two or more companies may form a strategic alliance. They will share skills, ideas, costs and profits.
- For example, General Motors and Citroen jointly developed the Opel Corsa and Citroen C3 cars.
- Another example is Swatch and Mercedes Benz coming together to create the SMART car.
Competition within a business
- Employees compete with other employees for promotion.
- Employees look for increased wages but employers want to keep costs to a minimum.
Competition between businesses
- Two producers or service providers may compete on prices, e.g. Ryanair and Aer Lingus.
- Consumers benefit from lower prices.