UNIT 1

PROFITS: 

• survival 
• provide for family 
• increase revenues

NON-PROFIT MOTIVES:

• be your own boss 
• help others
• work from home 
• ethical issues 

• They can gain good publicity  which might lead to greater profits
• used to make your business different 
• boost sales 
• to help others- making a positive contribution to the economy and local community.

AUTOCRATIC: 

• tell workers what to do 
• expect them to do as told 
• make all decisions 
• take ALL repsonsiblity for devcisions 
• effective when quick decisions are needed. 

• Size of business 
• the workers
• leader's personality 
• the task 
• the organisation 

Examined how managers view their subordinates (workers) and placed the managers on different categories theory X and theory Y 

THEORY X : MANAGERS BELIEVE THEIR WORKERS ARE: 

Workers are motivated by money 

They are lazy, dislike work and avoid it if they can 

An unsupervised employee will not perform properly or efficiently 

The average person prefers to be told what to do and to avoid responsibility, 

THEORY Y: MANAGERS BELIEVE THAT WORKERS: 

seek satisfaction from work and not merely financial rewards

effort is put into work naturally

most posess creativity and would like to incoporate into their work 

often accept and seek responsiblity

organisation and co-ordination of activities of a business in order to achieve the set objectives. 

using initiative to set clear objectives in order to motivate staff. 

External factors

Is the market slow/ dynamic?

where the company is on the product life cycle 

The competitiors of the business 

 INTERNAL FACTORS  

Organisation culture 

quality of staff, are they trustworthy 

Good working relationship with employees 

ethics are morally good 

Leadership styles can influence the frame work of ethics within the company. 

A market puts buyers and sellers in touch with one naother so that gooda and services can be bought and sold. 

the desire to own a good or service, this is backed by the ability to pay for it. 

FACTORS AFFECTING DEMAND 

• price
• competitions price
• the fashion/trend 
• seasonal products/ weather
• income- changes in demand of luxury items
• the state of the economy GPD)

amount company produce and deliver goods or services demanded by customers. 

FACTORS AFFECTING SUPPLY 

operating costs

price the market will offer

physical constraint 

changed in technology 

changes of taxed or subsidies 

find out the current size of the target market.

consider the future potential of the target market

find out market shares or existing companies/brands 

ways of undertaking market research 

primary research- research produced and researched by your self (accurate and reliable but time consuming and expensive.) 

secondary research- research found from magazines or from past research done by others,  ( convenient and quick but can be unreliable, out of date and inacurrate to what you need it for)

QUALITATIVE RESEARCH  

In depth research into motivations behind attitudes and buying habbits of conusmers- found by group discussions e.g. focus groups with in depth discussion people can be influenced by others :/)

QUANTITATIVE RESEARCH 

preset questions to a suitable sample of people to provide satisfactory valid data.- sampling froma calculated sample size and method, no bias and random and systematic

cost of missing out on the next best alternative when making a decision 

the money raised by the selling of ordinary shares in PLC BUSINESSES 

stakes in the business and the shareholders will recieve a dividend. 

Fixed costs- do not change with output 

variable costs- change with output piece rate, comission, materials)