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HomeBusiness Theory
Business Theory
Business in the community
The term business in the community relates to the relationships that a business develops with stakeholders in its external environment. In addition Business in...
Government and EU influences on business activity
Our national government as well as the European Union play a big part in influencing business activity today:
through taxation and spendingthrough laws, directives and...
Responding to social responsibilities and ethics
Businesses work in a wider social environment in which they have a responsibility to a range of stakeholders including the wider community.
The term Corporate...
SLEPT analysis
Before creating business plans or when evaluating existing ones it is important to 'scan' the external environment. This takes the form of a SLEPT analysis,...
Social and other opportunities and constraints
Opportunities in the business environment are those factors that provide possibilities for a business to expand so as to make more sales and profits....
External influences
Businesses operate in an external environment in which as well as competition from rivals businesses have to take into account legal, political, social and...
Profit and loss accounts, balance sheets
Two of the most important financial statements for a business are the Profit and Loss Account, and the Balance Sheet. The Profit and Loss...
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....
Constructing accounts
Accounts are records of financial transactions. Information that is used in accounts is initially entered into books of prime entry, which may simply be...
Use of personal income
There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business....
Opportunities and constraints in the business environment
Opportunities in the business environment are those factors that provide possibilities for a business to expand so as to make more sales and profits....
Sources and uses of finance
There are a number of ways of raising finance for a business, below we examine the sources and uses of finance. The type of...
Types of customer
Organisations will often set up different structures to deal with different types of customer customers. This is because they will often give some groups...
Marketing strategy
A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore a marketing plan designed to achieve marketing objectives. For...
The market its definition and structure
A market consists of all the consumers who purchase a particular type of good or service. The market may be subdivided into separate segments...
The marketing mix
The marketing mix is often referred to as the '4 Ps', i.e. product, price, place and promotion. To meet customers' needs a business must...
Marketing and sales
Marketing is the process of identifying, anticipating and then meeting the needs and requirements of consumers in order to make a profit. In contrast,...
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...
Responsible production
Responsible production involves the production of goods and services in an ethical way which involves the minimisation of waste and pollution.
In the past...
Technology
Technology is the process of applying new scientific discoveries and other developments to products and processes. If we look at the development of production...
Control of business activity
Control of business activity takes place at two levels - control from within the organisation and external control.
Internal control
Internal control involves the creation of...
Location
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...
Production process
The production process is concerned with transforming a range of inputs into those outputs that are required by the market.
This involves two main sets...
Stock control
Businesses hold stocks in a variety of forms:
raw materialswork-in-progressfinished goodsconsumablesplant and machinery spares.
The aim of stock control is to make sure that a business...
Communication negotiation and consultation
Negotiation involves discussion to make agreements where the parties involved have some difference of interest or simply negotiation of how a task or project...
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...
Methods of remuneration
Remuneration consists of the rewards that employees receive from their work. Employees that work for modern companies and other major UK companies will receive...
Investigating job roles
Organisations are structured in radically different ways ranging from relatively fixed structures with positions, rules, and established chains of communication to dynamic structures in...
Remuneration incentives job satisfaction
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...
Legal forms of business
There is a range of legal structures associated with different forms of business:
1. Sole trader businesses are the easiest to set up because there...
Business structure
Every organisation made up of more than one person will need some form of organisational structure. An organisational chart shows the way in which...
Business planning
Good business planning is an essential requirement if a business is to succeed. A business plan is a document setting out information about the...
Business strategy
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...
Business expansion
Business expansion presents potential benefits and drawbacks, some owners are even unwilling to take the risk of growing a business, instead deciding to stay small....
Measuring performance against objectives
Management accounting uses financial information in order to enable better decision making within the organisation. The format and content of management accounts will depend...