Chapter 1 - Introduction to People in Business [Notes]

1. Business    [DEFINITION] Business: Any organisation set up to provide goods or services.    [DEFINITION] Commercial Business: A business which provides goods and services to make a profit for the owner.    [DEFINITION] Non-commercial Business: A business which exists to meet some need other than making a profit.

2. The Stakeholders Who are Involved in Business    [DEFINITION] Stakeholder: A group of people who are directly affected by how a business is run.        The stakeholders who are involved in business include...            [DEFINITION] Entrepreneur: A person who takes the initiative to turn an idea into a business.            [DEFINITION] Investor: A person who provides a business with the finance it needs.                The different types of finance that an investor may provide includes...                    [DEFINITION] Owners' Capital: Money invested by people or companies.[In return, they become part owners of the business, and are entitled to a share in future                                                                            profits.]                    [DEFINITION] Loan Capital: Money provided by banks or other lenders which has to be repaid, with interest, within a certain period of time.                    [DEFINITION] Grant: A gift of money that does not have to be repaid as long as certain conditions are met.            [DEFINITION] Employer: Someone who recruits staff to work for them.                Employers' rights include...                    The right to include employees when they need them.                    The right to direct employees to perform the work required.                    The right to dismiss employees fairly.                Employers' responsibilities include...                    The responsibility to provide a written contract of employment.                    The responsibility to pay wages as agreed in the contract of employment.                    The responsibility to provide safe working conditions.                    The responsibility to comply with all employment laws.            [DEFINITION] Employee: Someone who is recruited by a business to assist in the business in return for a wage.                Employees' rights include...                    The right to receive a written contract of employment.                    The right to be paid the agreed wage.                    The right to work in a safe and healthy workplace.                    The right to have the freedom to join a trade union.                Employees' responsibilities include...                    The responsibility to follow REASONABLE and LEGAL instructions.                    The responsibility to work for a wage.                    The responsibility to be honest and loyal in their work.            [DEFINITION] Manager: The person responsible for running the business and achieving its goals.            [DEFINITION] Producer: A business that makes products to sell to customers.            [DEFINITION] Supplier: A business that supplies the raw materials needed by the producer.            [DEFINITION] Service Provider: A business that supplies the services needed by businesses.            [DEFINITION] Customer: A person who purchases goods from a business for their own use or for resale to others.            [DEFINITION] Consumer: A type of customer who buys goods and services purely for their own use.            [DEFINITION] Society: They local community where the business is located, and to wider society, both nationally and globally.            [DEFINITION] Government:The local and national authorities that set the rules and regulations by which businesses must operate.

3. Interest Groups    [DEFINITION] Interest Group: An organisation that represents stakeholders who share a common interest or goal.    [DEFINITION] Lobbying: A deliberate effort by interest groups to influence decision-makers by promoting a particular point of view.    [DEFINITION] Business Interest Group: An interest group that represents the interests of businesses.        Examples of business interest groups include...            [DEFINITION] IBEC: The main organisation representing large- and medium-sized businesses in Ireland.            [DEFINITION] The Small Firms Association: Speaks for and advises small businesses.            [DEFINITION] ISME: Speaks for and advises small- and medium-sized enterprises.            [DEFINITION] Chambers of Commerce: Aim to protect and promote businesses located in their area.    [DEFINITION] Trade Association: A Business interest group that represents businesses involved in similar types of activities.        Examples of trade associations include...            SIMI            FDII            RGDATA            IAHS    [DEFINITION] Trade Union: An organisation that represents the interests of employees in a business on issues concerning pay or issue of employment.        An example of a trade union is...            [DEFINITION] ICTU: Represents the interests of all trade unions and their members nationally.    [DEFINITION] The National Consumer Agency: A State agency set up to ensure consumers are aware of their rights and that legislation protecting consumers is obeyed.    [DEFINITION] The Consumers Associations of Ireland: Represents and lobbies on behalf of consumer interests.    Environmental and Specialist Interest Groups

4. The Relationships That Exist Between the Different Stakeholders in Business[IMPORTANT TABLE]

5. The Difference Between Co-operative and Competitive Relationships    [DEFINITION] Competitive: This relationship is a win/lose one. It assumes that only one party can win, and therefore stakeholders must compete to gain a commercial advantage                                            over the other.        A competitive approach is suitable for dealing with...            Rival firms in the marketplace.        A competitive approach is unsuitable for dealing with...            Business stakeholders.    [DEFINITION] Co-operative: This relationship is a win/win one. 

1. Business

2. The Stakeholders who are Involved in Business

3. Interest Groups

4. Existing Relationships Between Stakeholders in Business

5. Co-operative and Competitive Relationships [Difference]