Business

• enterprise - a business that is set up to make a profit by selling goods or services to the public
• Business plan- a document that outlines the businesses objectives, how it will achieve them and how it will be financed
• Sale results- quantity x price
• Internal growth- the business grows from within, by increasing the number of employees, increasing the number of products sold, developing new products, or finding new markets.
• External growth- growth of the business through integration (acquisition or merges).
• Why do some businesses fail?

  strong competition, poor choice of location, or failure to invest in new technology.
• Corporate social responsibility- the idea that businesses should consider the impact of their activities on society
• Social enterprise- a business with social objectives that reinvest most of its profits back into the business or into benefiting society at large.
• Stakeholder- A person or group that has an interest in the business because they are affected by it’s activities.
• F.Taylor’s motivation theory- theory of the economic man- that people are only motivated by money.
• Maslow’s motivation theory- 5 levels of motivation- physiological, safety, love and belonging, self-esteem, and self actualization
• Herzberg‘s motivation theory- 2 factors that affect motivation: job characteristics and job demands
• Commission-payment to sales staff based on the value of the items they sell.
• Job rotation- increasing the variety in the workforce by allowing workers to switch from one task to another.
• Job enlargement- increasing or widening tasks to increase variety for workers.
• Job enrichment- adding more responsibility to a job to make it more interesting and challenging
• Quality circles- a group of employees who meet to discuss quality problems and work to improve them.
• Team-working- passing responsibility to perform tasks to workers lower down in an organisation charts.
• Subordinate- an employee who is under the authority of another employee in the organisation chart.
• Span of control- the number of subordinates reporting to each manager.
• Trade union- an organisation of workers aimed at improving pay and working conditions, and providing other services.
• Types of products

  • Consumer goods
  • Consumer service
  • Producer goods
  • Produoruus
• Price


  The set price at which the product is sold
• Place

  Where the product is made available to the customer
• Promotion


  The activities used to communicate the product to the customer
• Stages of product life cycle

  • Introduction
  • Growth
  • Maturity
  • Decline