Business Studies

Objectives:
P.I.G.S - Profit, Increased Market Scheme, Growth, Survival 

Social Enterprise:
Voluntary / not for profit and social enterprise

Interdependance:
Without the raw materialsthe product can't be made and if there are no products made there is nothing to sell. Vice Versa.

Limited Liability - Can't lose personal possessions, can only lose what you put into the business.
Unlimited Liability - You are responsible for all debts, you can lose house and possessions.

PLC (Public Limited Company) - LIMITED LIABILITY, Shares can bebought o n the stock market  by the public, the original owner can lose control of the company if 51% of the shares are owned by one person.
LTD (Private Limited Company) - LIMITED LIABILITY, Sell shares to family and friends, more likely to stay in control of the business.
Sole Trader/Prorietor (One Owner) - UNLIMITED LIABILITY, No new investment, you have to reinvest profits if you want to expand.
Partnership (2 - 20 Partners) - UNLIMITED LIABILITY, Easy to set up with a deed of partnership, workload is shared.
Public Corporation - Change the LEGAL IDENTITY of a business, this will give you UNLIMITED LIABILITY.
Multinational Companies - Benefits: Managerial economies of scale, production economies of scale, reduced overheads, greater profits etc. Drawbacks: Less comunication between head office and individual stores, customer service could suffer.

Integration:
Horizontal - eg. Morrisons taking over Sainsbury's.
Vertical - eg. A cheese manufacturer will take over a dairy farm.
Lateral - Subsidiary companies join together that produce similar but related products eg. eBay and Skype.
Diversification - Expanding into different markets with different products.
Merger - The process of bringing 2 firms together once they have come under common ownership. Not hostile.
Takeover (acquisition) - Where 1 business acquires a controlling interest in another business. For a takeover there is a change of ownership with the acquiring firm becoming the legal owner of the sold business. Can be hostile.
Location:
Access to Labour - Population, how skilled the area is, cost of labour.
Availability of Land - Cost, community views.
Availibility of Resources - Closeness to raw materials.
Suitability of Infastrcture - eg. Roads and rail links etc.
Availibily of Grants - Regeneration grants from the Goverment.
Footloose - Businesses that set up in an area near a University, seloling small technical equipment, do not need footfall customers, can move easily eg. Microchip companies.

Recruitment:
Internal Recruitment - advertising and employing someone who is already working within the business. (promotion)
External Recruitment - Advertising and employing someone who would be a new employee for the business.
Process of Recruitment:
Identify Job Vacancy - Draw up a job description listing the details of a job
Person Specification - Lists the personal details eg. qualifications, past experience, skills.
Advertise the Job - Type of job
Recieve Applications - How have the applicants applied.
CV - Includes: name, address, contact details, personal statement,skills, qualifications, experience, 2X referees.
Letter of Application - 2 sides of A4 can be an answer to a question posed by the business or why you think your'e suitable.
Application Form - Ask for similar things as your CV 
Shortlisting - Human Resources will draw up a short list and invite them for an interview.
Interview - A panel of employees will set tasks/ask questions to find the best person for the job. THEY MUST ASK THE SAME QUESTIONS TO EACH CANDIDATE. Some companies will set tests, group activities or presentations for the interviewees.

Training of Workers:
Reasons why workers need training are new members of staff, new equipment, new procedures, new role etc.
On the Job Training - Whereworkers are given training within the business with another member of staff.
Off theJob Training - Where workers are trained away from the business by external trainers.
Staff Appraisal - The importance of staff appraisal and life long learning.

Monetary Methods of Motivation - Non Monetry Methods of Motivation

Overtime - Job Rotation

Saleries - Job Enlargement

Piece Rates - Job Enrichment

Commission - Team Working

Bonuses - Award Schemes

Legalisation imposed on a business:
Minimum Pay
Employment rights: Gender;race;age;disability;sexual orientation.
Equality Act
Health and Safety
Working Time Directive
Redundancy 

Trade Unions:
Work to Rule - Only doing what is in your contract and showing no good will.
Overtime Ban - Refusing to take on additional hours to get work completed.
Strike Action - Refusing to work for a period of time.

ACAS is a publicly funded independent organisation that aims to promote better employment relations.

Single Union Agreement is An agreement between an employer and a union such that the union will represent all the workers at a particular workplace.

Organisational Structures:
Tall Structure:
A tall structure has lots of layers and you have a better chance of promotion within a tall structured business but there is longer lines of communication so it is slower to get your message across however easier to get your messageto your subordinates and a longer chain of command.
Flat Structure:
A flat structure has less chance of promotion as there are less layers but a greater chance of delegation of tasks. It is harder to communicate with subordinates but easier to communicate from top to bottom.
Span of Control - How many a person is responsible for.
Chain of Command - How many layers.
Delayering - Used as a way to reduce costs.
Departments:
Human Resource
Finance
Production
Marketing
Research and Development

Business Change:
Internal Growth
Integration with onther business
Changes to Products/Services
Changes in the way that their Products and Services reach the Customers
Changing Work Patterns:
Part-Time Work
Full-Time Work
Flexible Working Hours
Seasonal Work
Communication:
Formal - Letters/Meetings
Informal - Memos/Texts/Email/Phone Calls
Verbal  - Telephone/Face to Face/Voicemail
Non-Verbal - Email/Text/Letter/Body Language
Barriers of Effective Communication - Language used, poor internet connection, loss of signal, local dialect etc.

ICT
Internet - People can work on the move/from home/change the hours they work to reach an international market.

Robots - Can replace worker and reduce costs but increase unemployment.

Computer Programmes - Allow businesses to track and target customers, make stock control easier, accurate production figures and sales figures and make business predictions.

Email - Can speed up communication rather than waiting for a letter or important document.

Profit Share - Promotion

Fringe Benefits - Leadership Styles

hhhhhhhhhhhh  Working Environment