Unit 1: Business Organization and Environment

• What is a good?

  • A good is a tangible item
• What is a service?

  • A service is a intangible item
• What is a need?

  • A need is for survival (scarcity)
• What is a want?

  • A want is a luxury (choices)
• Who do businesses satisfy?

  • Stakeholders, owners, employees, customers, suppliers, governments, banks and the environment.
• How do businesses satisfy?

  • Making profit, selling goods/services, provide jobs, purchase raw materials and pay tax
• What is Unlimited Liability?

  • The owners are totally responsible for the business. If the business fails, any debt is paid using owners own money. E.g. House or Car
• What is Limited Liability?

  • The owners are only responsible for their share in the business. If the business fails, they only lose the money they spent to get their share.
• What is Say's Law?

  • The production of products creates demand
• Shrinkflation

  • Where a manufacturer keeps the price the same but the product smaller
• Steeple Analysis


  • It is an external analysis tool but is just a snapshot in time
  • S - Social
  • T - Technological
  • E - Economic
  • E - Environmental
  • P - Political
  • L - Legal
  • E - Ethical
• Limitations of Steeple analysis


  • Markets are dynamic - the findings can be outdated
  • Extremely difficult for MNC's (Multi National Corporation)
  • Extremely expensive (to keep up to date)
• Usefulness of Steeple analysis


  • Helpful planning tool to prepare for the future
  • Investment opportunities
  • Workforce planning