1. Chapter one: People in Business
A business is an organisation set up to provide goods and services to potential customers.
Commercial business – main aim is to make profits
Non-commercial – main objective is to provide a service.eg)GOAL,Concern,

2. Stakeholders The central players in a business
They are the different groups of people who are affected by how a business is run.
A decision made by one stakeholder can affect others.
They include:
entrepreneurs
employees (E’ees)
employers (E’ers)
consumers
Investors/shareholders
suppliers
service suppliers
the government
The local community/society
Interest groups

3. Entrepreneurs Risk takers
They are the people who use their initiative and take a personal risk in starting a business.
They see a commercial opportunity in the market/some need that needs to be filled.
They turn their idea into a business
They raise finance, get organised and set about producing goods/services.
Example: Pat McDonagh-Supermacs
John O Shea -GOAL

4. Investors
Are the people who provide a business with finance it needs- Banks, Gvt agencies, or relatives.
Owners capital-provided by the owners or by venture capital companies, who become part owners in the company and receive part of the profits
Loan\debt capital-provided by banks, repaid with interest.
Grants-provided by Gvt agencies-Enterprise Ireland, Co. Enterprise Boards. Does not have to be repaid
In return for their investment, investors expect to receive regular interest payments or a share of the profits.

5. Producers/Suppliers
Producers are the providers of g&s. They transform raw materials, machinery, finance and human effort into finished products for sale.
Suppliers are the businesses who supply the raw materials and services to keep the business operating

6. Employers
Are the people/org’n who recruit staff to assist in the production of goods and services, in return for a wage.
Happy, hard working staff are needed for the long term success of the business.
A Human Resource Manager (HRM) is appointed to ensure good industrial relations.

7. Employers rights & responsibilities
Recruit & select e’ees according to Employment Equality Act 1998
Dismiss employees fairly according to Unfair dismissals Act
Give direction and instruction
Responsibilities
To provide a written contract of employment to each e’ee.
Pay a fair wage in return for a fair days work
Provide safe working conditions
Obey all employment laws

8. Employees : Are the people who are recruited and are paid a wage in return for their skills.
Rights
To join a trade union
Fair wage in turn for a fair days work
Safe work cond.
Treated equally
Holidays and holiday pay
Receive written contract of employment
Responsibilities
To do an honest days work in return for a fair wage
Not to damage e’ers property
To obey terms of their contract
To carry out e’ers instructions -lawful

9. Trade unions
Are organisations set up to represent the interests and rights of employees by speaking and negotiating on their behalf with employers.
Functions:
They negotiate pay and working conditions for its members.
Represent members in any conflicts they may have with their employer.
((Closed shop agreement-where e’ees can only join one particular union in a workplace. This is legal.))
Examples
ASTI: Association of secondary teachers in ireland
SIPTU: Services, industry, professional, technical union
IMPACT: Irish municipal public and civil trade union
INTO: Irish national teachers organisation
INO: Irish nurses organisation

10. Consumers
Are the people who buy the good or uses the service for their own personal use (not for resale)
They aim for top quality at the lowest price possible
They want guarantees and a reliable after sale service
They want choice.
Business survival depends on consumers therefore its important to keep them happy/satisfied. Dissatisfied customers will take their custom elsewhere- causing knock on effects on stakeholders such as e’ees losing their jobs and suppliers losing orders.

11. The Government A stakeholders on behalf of the public
It sets laws that must be obeyed by businesses i.e.) The Sale of Goods & Supply of Services Act 1980
Gvt agencies give grants, training and advise to new & existing businesses i.e) Eolas and Enterprise Ireland
Gvt agencies monitor and enforce laws i.e.) The National Consumer Agency
Ensures there is fair competition in different industries.
The company must pay businesses taxes to the Gvt – PRSI, Excise duty, Motor tax,
The businesses acts as a tax collectors for the Gvt – PAYE,VAT.

12. Interest Groups
Interest groups are NOT stakeholders, as they are not directly involved in the running of the business.
Their role however can have an impact on each stakeholder b/c their actions may influence some business decisions

13. Interest Groups
Are representative organisations which represents a particular group of people who have similar needs/objectives.
They try to achieve results and influence decisions by applying pressure to other organisations, such as the Gvt or a particular business.
They include trade unions, business and trade associations, consumer and environmental pressure groups.

14. Interest groups in Ireland
Business and Employers interest groups– IBEC Irish Business&Employers Confederation,
ISME-Irish Small and Medium firms Association.
2. Employees interest group
ICTU-Irish congress of trade union,
SIPTU Services industry professional technical union
3. Suppliers interest groups
CIF Construction industry federation,
IFA Irish farmers association,
ITAA Irish travel agents association,
SIMI society of Irish motor industry
4. Consumers interest groups
CAI Consumer Association of Ireland.

15. Interest groups persuade groups by
1. Negotiate directly: ICTU is a permanent interest group that tries to influence the gvt on wage levels, taxation, and gvt policy.
2. Generate negative publicity: and they encourage consumers not to support certain firms for example environmental groups encourage consumers not to support firms that do not sell reusable products,
3.Lobbying: one of the main aims of i/g. This involves trying to influence decision makers usually through a high profile, organised campaign of discussions and public media.
4.Boycotting:where the i/g use the strength of its member numbers to boycott(stop supplying/shopping) a particular supplier. ie) The IFA’s members boycotted meat processors until a major problem over prices was resolves in their favour.

16. How do businesses react to interest groups?
1. Positive response by meeting and agreeing with some of their wishes. This will help restore goodwill
2. Use public relations to persuade the consumer market that the aims of the interest group are unreasonable.

17. Relationships between stakeholders
Co-operative relationships-is where parties work together for their mutual benefit. Its a win/win situation. Every business requires all stakeholders to work together towards the common goal for the business to succeed.
Competitive relationships –is where parties in a business have different objectives. They are constantly disagreeing with each other. Its a winner/looses situation.

18. Examples of Co-operative and competitive relationships
Investors V’s Entrepreneurs
Co-operative –the entrep.will provide the investors with honest and complete financial information and a good return on their investment. The investor in return will be supportive of the entrep.and continue to advance necessary funds.

19. Competitive
Competitive -A competitive relationship will exist if the investor feels they are not being provided with honest and complete info and are not receiving a good return. The investor may refuse to give additional finance to entrepreneur.

20. 2.Consumer v’ s Producers
Co-operative – a co-operative rel’ship will exist if consumers feel the producer is providing high quality goods that are reasonably priced. Satisfying the consumer is vital and will lead to customer loyalty. The consumer also provides the producer (entrepreneurs) with market research information which will help them produce a successful product.

21. Consumers v’ s Producers
A competitive relationship will exist if the consumer feels the producer is providing poor quality goods and poor after sales service. The success or failure of a business depends on whether consumers are loyal to a business, if consumers become unhappy about some aspect of a business they may decide to boycott the products of a particular supplier, or take there custom elsewhere.

22. 3. Employers v’ s Employees
Co-operative relationship will exist if workers receive a fair wage, safe work conditions and recognition of hard work. Empowerment of employee involves giving responsibilities to e’ees to make decisions. This is good for staff morale and will increase motivation, and a better service to customers.

23. Co-operative (continued)
If a business is going through bad patch, e’ers and e’ees may work together to save the business. E’ees agree to a pay cut until business improves and e’ers may give them shares instead. In this way they both win in long term b/c the business does not go bankrupt but continues to provide profits and jobs. (aer lingus)
E’ers may have both a wages & bonus system in operation. As well as being paid a basic wage, e’ees are encouraged to work hard to reach agreed targets and get rewarded with a bonus. Some firms offer Profit Sharing schemes where an agreed % of profit is paid to e’ees.

24. Employer Employee Competitive Relationship
A competitive relationship will exist if e’ees feel their work conditions are unsatisfactory or if they feel they are not receiving adequate remuneration of or if they feel insecure in their jobs. E’ees want job security, whereas e’ers may want to make redundancies to save money. E’ees may want a pay rise whereas e’ers want to save money for future investment.

25. 4.Producers V’s Producers
A co-operative relationship will exist between producers if they are lobbying the gvt for changes in legislation or if producers are promoting goods with generic advertising. e.g.) National Dairy Council.
Car manufacturers will work together to design new battery powered engines that they all can use.

26. Producers v’s producers
A competitive relationship would exist between producers if there was an on-going competition in areas such as: sales to customers, quality of g/s, selling prices charged and employing staff.
Aer Lingus and Ryan Air compete with each other to win customers,when one announces a low fare the other fights back with a lower fare.

27. Dependent relationship
This means that the parties in business depend on each other in order to be successful. They cannot achieve their goals on their own. They rely on the other party so that they can be successful.
Consumers and producers
Entrepreneurs and Investors
Employee and employer

28. Dynamic relationship
This means that the rel’p between stakeholders is constantly changing, sometimes competitive sometimes co-operative.
(Local business in a town come together to organise a town festival
When employees buy shares their role changes to investor as well as employee.)

29. Resolving conflict between stakeholders
1. Talk it out - the simplest and quickest way to identify the issues and agree a solution. It helps maintain good communication and trust.
2. Negotiate a solution– means both sides make a series of offers and counter offers until they reach an agreement acceptable to both sides.
3.Conciliation-
This is where an independent third party, known as a ‘conciliator', is brought in to talk to both sides separately before bringing them together to help them appreciate the other sides position.
The conciliator doesn’t recommend a solution but her role is to help them reach a better understanding of each others needs so that finding a solution is easier.
The Labour Relation Commission provides a conciliation service.
Examples of Conciliators include a local politician, or a trade or business association representative.

30. Cont.
4.Arbitration
This is where both parties seek an independent third party called an arbitrator to be appointed to resolve the conflict.
Both parties in the dispute agree in advance that the decision of the arbitrator is binding.
Arbitration is provided by the Labour Court. (The Court of last resort)

31. How consumers benefit from competitive relationship between producers
Better price- consumers are offered lower price on g/s, which means they have more buying power, as producers compete with each other for customers. In order to win consumers over producers will lower their price over their competitors.
Better Quality products/services- consumers want high quality g/s and when producers are competing against each other for customers they will increase the quality of the goods they have to offer resulting in a better quality product for the consumer. Ie)River Island v penneys
Wider choice- consumers like a wide choice and variety of g & s so producers will provide them will this in order to get them into their stores and increase sale and profits on their rivals. Tesco v Centra
Improved after sales service: