unit 1 people in business Flashcards
what is an entrepreneur
the entrepreneur is the one that spots a gap in the market for a good or service, takes on the risk-both personal and financial risk- of starting a business to make a profit
financial risk - risk of losing the money they have invested, through their savings or a loan
personal risk - risk of failure amongst their friends/ families, which could lower their confidence
what is an investor
they give the entrepreneur money, called capital, so that they can invest in the business to help to help it succeed. they expect to receive a return on their investment
dept capital - an investor like a bank may offer money to a business as a loan which is repaid in instalments with interest, and they take no ownership/control of the business
equity capital - an investor may offfer capital in exchange for shares in the business. they would then own some of the business, and expect to receive a reasonable dividend from the business’s profits
what is an employer
an employer hires people to work for them and usually pays a wage or salary
what is an employee
an employee works for their employer, in return for a wage. they are protected by employment law and would usually sign a contract of employment starting out
what is a manager
an entrepreneur may decide to hire someone to run a business for them. a a manger arranges the business’s resources, making business decisions to achieve the business’s goals set out by the entrepreneur set by the entrepreneur and help it succeed
what is a producer
a producer usually manufactures products to sell to consumers. they can use raw materials bought from supplier to create a finished product for sale
what is a supplier
a supplier sells finished stock or partly finished goods to a business. they may supply raw materials to be used to create products or supply stock for resale by the business
what is a service provider
service providers offer business important services that they may need to run their business. they will probably need things like electricty, broadband, light and heat and may also want a chip and pin terminal for paymnts so will need a business like Sum Up or Shopify to process paymets and a bank to keep them secure
what is a consumer
a consumer is a person that buys goods and services sold by a business for their own personal use. they can help an entrepreneur by taking part in market research giving out information on what they want from a product
what is an interest group
interest groups are organisations that represent the common viewpoint, objectives and goals of a particular group of stakeholders. interest groups are known as pressure groups or lobby groups. interest groups seek to influence decisions makers by lobbying, media campaigns, public protests , boycotts and possible legal action
IBEC - Irish business and employers confederation : lobbied the government to not increase the national minimum wage and represents employers in industrial disputes
ICTU - Irish congress of trade unions: interest group for employees- lobby government to increase the minimum wage for workers, and improve their working conditions
IFA - Irish farmers association : Irelands largest farming representative organisation, lobbying and campaigning in Ireland and Europe for improved conditions and incomes for farm families in Ireland
what is a co-operative relationship
parties/stakeholders working together towards a common goal. they act in a mutually beneficial manner - it is a win-win relationship
what is a competitive relationship
each party/stakeholder tries to win at the other parties expense. it is a win-lose relationship where parties pursue a mutually exclusive goal
describe the relationship between an investor an entrepreneur
in a co-operative relationship situation could arise if the entrepreneur requests more time to repay a loan during an economic downturn, and an investor agrees to allow them more time to reduce the chances of them going out of business and not being able to pay back the debt at all (win-win). this would be a co- operative relationship as both parties gain from the relationship
a competitive relationship (win-lose) may exist where an investor may want immediate returns eg a dividend and is not prepared to wait for higher future profits by retaining funds in the business in the business for further expansion where an entrepreneur might prefer
describe the relationship between supplier and purchasing manager
a co - operative situation(win-win) would arise when the supplier provides good raw materials, components and finished goods to the purchasing manager who pays on time and offers a fair price. they act in each others interests to both benefits
there may be a conflict (win-lose) between the two sides if the purchasing manager isn’t paying up within the credit period provider by the supplier for the purchase of the goods
what are the benefits of a competitive relationships between producers
lower prices- producers may lower their prices to attract more consumers to them. this is of financial benefit to the consumer who can swap and save between brands
higher service/quality- producers like Lacoste may try to increase the quality of their product in order to increase sales against their competitors ( tommy hilfiger) . customers may respond by becoming more loyal to the firm. consumers would benefit by getting a higher quality product from the manufacturer
greater choice/ range - producers like Nike or |Adidas may try to increase the range of products(increase choice) available for sale to increase loyalty amongst consumers. consumers would benefit, as there are more options available to them
improved aftersales service - producers like Sony or LG may try to offer better customer service to their consumers eg live chat on their webpage, more information on their products, customer care line… to outdo their competition. customers would benefit as they can find out better information on the product before purchasing an item like a TV
