WHAT ARE THE KEY BUSINESS TERMS?
WHAT IS BUSINESS?
In any activity by which a person or group of people aims to make profit.
Business is any activity by a person of group of people that involved in production of goods and services in other to makes profit. Goods are real raw material that are physical, touchable that result in profit e.g. books, furniture’s etc. While services are what we render to group of people or an Organisation in other to be paid, such as cleaning a house for someone or roofing a house are intangible.
1.1
KEY BUSINESS TERMS.
Business terms are the terms that help the standardisation and communication within a company, such as.
1} Business Aims.
2} Objective.
3} Strategy.
4} Cost.
5} Profit.
6} Adding value.
Business Aims.
According to Jim Rilley 2012.
Business aims – Is a massive term of any business also an independent registered charity Organisation. Is a goal an organisation want to achieve. The expansion of a business, increasing their profit, better quality and standards. For example, an independent registered called Refuge forum here in Nottingham aims is to support asylum seekers and refugees in Nottingham and Nottinghamshire by providing welcoming community center, offering professional impartial advice and support, likewise a ‘Just’ response to refugees and asylum seekers form Government and the host community (NNRF’2000).
Strategy: – Strategy is an overall goal of an Organisation long term plan of action designed to achieved particular goal or set of goals. That is meeting the expectation of its customers, and sustaining a competitive advantage in the market place. Strategy is a master plan and policy of any business, and without it there is no way the aims of an organisation could be achieve. (Kevin johnston 2018).
For example, Refuge forum put into places some strategies to achieve their aims for refugees and asylum seekers by, fundraising, go out to street to raise money, Anti-Destitution project, employability scheme – helping refugees into employment, children and family support, legal project – providing trained interpreters to help them and interpreting services – for those who cannot speak English. Etc.
1.2
HOW STAKEHOLDER CAN INFLUENCE THE OPERATION OF A BUSINESS.
Stakeholder- Stakeholder are individual or group of people that affect or affected by any achievement of the organisation objectives. (Edward Freeman’1984:46). Both internal and external stakeholder are very important to the success of any organisation with different interest and priorities. sometimes these can conflict.
Stakeholder (en). Svg.
HOW INTERNAL AND EXTERNAL STAKEHOLDERS CAN INFLUENCE THE OPERATION OF A BUSINESS.
1} Customers.
2} Employees.
Employees: – Employees are internal stakeholder, and it is very important that the company or an organisation places a great value on the contribution their employees makes towards their business operations.
Employees are the that provides the consistent services that help company attract and retain customers, which means employees are the face of any company, and motivating them with pay rise, bonuses, discount, voucher. Proper, regular training, and promotion will motivate, and help them to carry out their job effectiveness and better. With this they will be able to deliver a fantastic customer service. By making employees feel valued and happy will go a long way in responding and meeting their customers need. (Neil kokemuller 2007).
Customers: – Customer are external and key stakeholder of the company. Any business that brush aside the concerns of their customers will definitely find themselves losing out to their rivals. Customers are the strong hold, and the source of revenue, cash flow of the business. That is how important the customers are to the development of any business. Without customer, there will not be a business and that is why every organisation or business must understand their customers needs, wants and always try as much as possible to meet them in daily basis.
For example, I bought a pack of Crips from Asda for just 0.80p, on getting home open the Crips and it was too salty, could not even bit it. I went back to Asda to complained, not because of refund but to let them know how bad that Crips was for the children. They apologies, refund and give me another Crips. That shows how important are to any company.
2:1
ECONOMY SECTORS
Economy sectors are the sectors in which economy in firms operate. Sectors form a chain of production which provides customers with finishing goods or services. It can be categories into three which are:
1} Primary sector.
2} Secondary sector.
3} Tertiary sector.
1} PRIMARY SECTOR.
Primary sector is sector that involved the extractive /raw materials.
For example, rubber from trees, oil drilled from the ground, and food stuff from farmed.
2} SECONDARY SECTOR.
Secondary sector is a processing stage, where the products from primary sector has been converting or assembling into components, such as, furniture from tree, making
Chocolate from cocoa, making plastic from oil.
3}TERTIARY SECTOR
Tertiary sector is a commercial service that support the production and distribution process. For example, Advertising, teaching, transport, health care, retails.
HOW DIFFERENT BUSINESS SECTORS IN THE UK ECONOMY INTERACT WITH EACH OTHER.
All three economy sectors are linked together as a supply chain. Business sector of the UK economy depends on one another, without primary sector, there would be no secondary and without secondary, tertiary can never come to an existence.
For example: Wool for fabric or jumper, fabric have to pass through all the sectors before it gets to the customers. Extracting wool from sheep is primary and it will go through series of processing in the factory which is secondary before passing through to tertiary. The manufacturing will take the raw sheep wool material and combines them to produce a higher value-added finished product jumper that can be worn. By spun the raw wool to form a better-quality wool, then be threaded and knitted to produce jumper,
Again, three sectors are interdependent on each other. A primary sector provide the base of all economic activities in the UK, it involved in natural product which will get from Agricultural, like fishing, diary and forester. The secondary will process is and lastly the tertiary sector will be the one to provide the final service. They are all depends on each other, if the agricultural production supply low raw material to the secondary sector to process will also be low, and as a result of this the demand for services as a tertiary sector will also likely to be low. So, if material suffers, the manufacturing or processing will suffer to and this will lead to low demand of the services. All sector are equal
THREE EXTERNAL FACTORS FACING THE UK BUSINESS SECTORS
1} Social factor.
2} Technology factor.
3} Legal sector.
Legal Factor: Trade law and labour law in the UK will be something to think of if planning to have any business here in the UK because there are some set of law that against certain type of business and any company that want to locate their business in the UK must abide under the Law of the United Kingdom .The best way to protect and preserve your business or company from possible legal attacks is knowing the legal factor of United Kingdom.
For example, the law and regulation of importing goods and weapons are varies from one country to another and any company that wish to trade in that kind of business will need abide to the regulation and communication according to that particular country. Selling alcoholic to under under 25 is illegal in UK but it might not in in another country.
Social factor: The changes that can affect your business, such as, social culture, religion, age distribution and demographic. For example, selling acholic in Dubai or selling children shoes in China, even here in the UK. The birth rate in the UK is falling, according to Nicola Haines, So, selling shoes in some parts of this country may affect demand for type and size of shoes needed over the longer term.
THE IMPACT MY CHOSEN EXTERNAL FARCTORS CAN HAVE ON THE OPERATION AND PERFORMANCE OF ORGANISATION IN BUSINESS SECTOR
Technological: There is no doubt that new technology devices instrument have transformed the performance of Organisation in the business sectors, most especially UK business environment. Those operating in the retails sector nowadays operate with internet system that allowed all the firms to develop online business model, people can now order anything online and get it deliver to their house without move an itch, there is click to collect that gives you the opportunity to order online and collect at the store, also there is self-check-out in all the retail store now across the global. Amongst these are technology development which have allowed retailers to interact with customers using social networking site like, Facebook, twitter, and Apps like Amazon, ebay and gumtree. They are now seen as key ingredients in developing a successful marketing strategy for development of any organisation. (Zarrella’2010)
Legal: Any organisation in the business must comply to the lagal standard of any country their business is located. For exaample, UK law minimum wage legislation, flexibility shift legislation policy, and equal opportunity can all have impact upon the sector.
Social: There are many social changes taking places in the global world right now which may have a high level of impact upon the performance of food stores and fashion retails like, Next, Asda Primark and Tesco. Increased cultural diversity
