Business Theory

Economic growth is measured by changes in the size of a nation’s income. There are a variety of ways to calculate national income, the...

A multinational company is one that operates in more than one country and typically operates in a number of major global markets. The three...

Opportunities in the business environment are those factors that provide possibilities for a business to expand so as to make more sales and profits....

Consumer protection is the process of defending consumers against unscrupulous practices by producers and sellers. Over time, case law in this country has developed...

Businesses grow for a number of reasons including to take advantage of a gap in the market, gain a competitive advantage over rivals, and...

Globalisation is a result of the world becoming increasingly interconnected due to the hugely increased trade and cultural exchange. The biggest companies are no longer just...

There are a number of ways that businesses and individuals can make payments to others. Typical methods of making payments include cheque payments and...

Banks provide a number of important financial services to business: Loans Provide businesses with expansion capital. A secured loan is one that is guaranteed by some...

The finance department of a business takes responsibility for organising the financial and accounting affairs including the preparation and presentation of appropriate accounts, and...

There are a number of ways of raising finance for a business, below we examine the sources and uses of finance. The type of...

Two of the most important financial statements for a business are the Profit and Loss Account, and the Balance Sheet. The Profit and Loss...

Businesses need finance for their day-to-day activities and in order to grow and change over time. Businesses must respond to their external environment in...

Demand and supply for goods and services The demand for a product is the quantity that buyers will be willing to purchase at a given...

Businesses exist in a competitive environment. For example, supermarkets are in fierce competition with each other to provide the best possible value for money...

Selling through websites is the fastest-growing method of trading worldwide, we will discuss the impact of eCommerce on business activity. There are two primary...

Market planning is the process of developing and implementing a plan to identify, anticipate and satisfy consumer demand, in such a way as to...

Creating strategies that meet customer needs in the marketing mix, when marketing their products firms need to create a successful mix of: the right product sold...

Customers are people who buy products and services from other people (usually companies of one sort or another). What customers think, and feel about...

Operating activities (or operations) are the ongoing activities that a business is involved in - e.g. processing a customer's order in an Argos store,...

Organisations are structured in such a way as to aid and control business activity. Typically business activity is organised around a systems approach in...

Methods of production, two major processes should come together in the preparation of a product or service for the market: Market research to find out...

Organisations have a formal structure which is the way that the organisation is organised by those with responsibility for managing the organisation. They create...

Organisations change over time in a variety of ways. There are a number of ways in which they might change: 1. From small companies to...

The location of a business is where it is situated e.g. in Central London, Silicon Valley, etc. Where to locate a business is a...

Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. However, the...

Transfers and termination of employment The Human Resources Department of an organisation typically oversees the transfer of employees within an organisation, as well as the...

Remuneration consists of the rewards that employees receive from their work. Employees that work for modern companies and other major UK companies will receive...

Directors, Managers and Supervisors all have responsibilities in the workplace as do grass root operatives. Directors are individuals with a legal responsibility to the...

Over time a body of law or legislation has developed governing employer/employee relations and the rights of employees and employers in the workplace. The Employment...

Remuneration (pay), incentives (such as bonus payments) and job satisfaction are all important in creating motivation at work. Remuneration and incentives The sum paid for a...

Developing a plan including external influences Developing a plan including external influences in order to set out a route map to help in achieving business...

Businesses come into contact with a range of external organisations, including: Competitors Suppliers of services e.g. transport and communications suppliers Providers of assistance e.g. advisory bodies such...

Economic growth is important if businesses are to grow and prosper. It relates to growth in the output of the economy as a whole....

A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as long-term...

Organisations are structured in radically different ways ranging from relatively fixed structures with positions, rules, and established chains of communication to dynamic structures in...

A business plan is a description of a business and its plans for the next one to three years. It explains what the business...