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HomeBusiness Theory
Business Theory
International issues
The international environment is very important today. Globalisation, the process whereby businesses develop worldwide brands and products which they supply across the world, and...
Marketing and the law
Marketing is designed to achieve profitable sales. It involves the use of powerful tools to manipulate the decisions of individuals and of other firms...
How businesses are affected by international competitors
In the modern world, businesses are increasingly affected by the actions of international competitors as a result of the globalisation process. Globalisation occurs because...
Planned market and mixed economies
Three main sets of decisions need to be made by the economic system - what to produce, how to produce, and how to share...
Exchange rates
Money is demanded in order for it to be used to buy and sell goods and services. The same applies to international currency. Foreigners...
Influences on businesses
Businesses operate in an external environment in which as well as competition from rivals businesses have to take account of legal, political, social and...
Costing and profitability
Knowing the cost of an item, or activity makes it possible to calculate the profit of that item or activity. This is very important....
Understanding a balance sheet
The Balance Sheet gives a frozen picture of one instant of time. The other two financial statements show movements over a period of time....
The personal budget
A budget is a plan, which is set out in numbers. It sets out figures that an organisation like a company hopes to achieve...
Calculating costs of production
Costing is an important aspect of production because:
by knowing how much it costs to produce an item or to carry out an activity it...
Investment appraisal
One of the most important long-term decisions for any business relates to investment. Investment is the purchase or creation of assets with the objective...
Marketing techniques
A marketing strategy is an overall marketing plan designed to meet the needs and requirements of customers. The plan should be based on clear...
Market research
Market research involves collecting, recording and making sense of all the available information which will help a business unit to understand its market. Market...
The impact of eCommerce on business activity
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...
Competition
Competition occurs when two or more organisations act independently to supply their products to the same group of consumers.
There are two bases on which...
Elasticity of demand
When you raise the price of most items, people will buy less of them. For example, when one airline raises its price, air passengers...
Measuring customer satisfaction
Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can...
Health and Safety
The health and safety of employees in the workplace are major concerns for employers and employees. Detailed employment laws and legislation have been created...
The formal and informal organisation structure
Organisations have a formal structure which is the way that the organisation is organised by those with responsibility for managing the organisation. They create...
Production and resource requirements
Production consists of all those processes which involve converting inputs into finished outputs that can be sold in the marketplace.
In order to carry...
Continuous improvement
Continuous improvement is arguably one of the most important concepts in Japanese management, and is the main difference between Japanese and Western approaches to...
Aiding and controlling business activity
Organisations are structured in such a way as to aid and control business activity. Typically business activity is organised around a systems approach in...
Planning controlling and reporting
Planning, control and reporting are three important aspects of effective production. Production plans set out the targets, time scales and methods of production. Targets...
Human resources
Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. However, the...
Recruitment and selection
Recruitment is the process of identifying that the organisation needs to employ someone up to the point at which application forms for the post...
Human resource management
Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. However, the...
Staff training and development
Recruitment takes place from the point when a business decides that it needs to employ somebody up to the point where a pile of...
Skills and Competencies
Core competencies are the skills that allow a business to deliver a benefit to customers, and capabilities that are critical for a business to achieve a...
Human resources planning
Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. However, the...
Growth and decline of businesses
Businesses grow in a number of ways - e.g. by increasing sales and profits, employing more staff, operating from more outlets, producing on a...
Trends in ownership and control
The owner of a business is the person who owns the business - i.e. has put the financial capital into the business and takes...
Relationship between size risk and profit
In the 1970s and 80s size was very important to a successful business. Large organisations sought to benefit from economies of scale in order...
Aims and objectives
Business activity is focused on the achievement of business aims and business objectives.
A business aim is a goal a business wants to achieve. A...
Resources and assistance for a business
Businesses require inputs of time, information, people, raw material, premises, capital, labour and paperwork. You can see from this list that considerable managerial skills...
Industrial sectors
The main types of business organisations in the private sector in the UK are - sole traders, partnerships, companies and franchises.
The sole trader is the...