Business Theory

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

There are a number of laws that protect the customer against the actions of unscrupulous manufacturers and sellers. Particularly important are the Sale of Goods...

In the modern world, businesses are increasingly affected by the actions of international competitors as a result of the globalisation process. Globalisation occurs because...

Regulation means providing rules and frameworks for business and other activities. Some aspects of business activity are self-regulating - for example, the Advertising Standards...

For centuries Britain has been a country that relies on international trade. We purchase goods and services from other countries and in return, we...

Before creating business plans or making decisions, it is important to 'scan' the external environment. This can be achieved through a PEST analysis, i.e....

A budget is a plan, which is set out in numbers. It sets out figures that an organisation like a company hopes to achieve...

A budget is a plan, which is set out in numbers. It sets out figures that an organisation like a company hopes to achieve...

Insurance is the business of taking on other people's risks. The UK lies at the heart of the world's insurance market. We were one...

There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business....

A forecast is an estimate of future figures based on experience. You can make forecasts about all sorts of events e.g. the weather, the...

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

When you raise the price of most items, people will buy less of them. For example, when one airline raises its price, air passengers...

International marketing involves recognising that people all over the world have different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that...

International marketing involves recognising that people all over the world have different needs. Companies like Gillette, Coca-Cola, United Airlines, BIC, Cadbury-Schweppes and Nissan have...

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...

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...

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...

Productivity is the efficiency with which a firm converts inputs into outputs. Since staff represent the largest cost for many firms, labour productivity has...

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...

Quality is often defined as 'fitness for purpose'. In other words, a product that meets the needs and requirements of its consumer. In his...

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...

Some firms use anti-competitive practices in order to improve their own position in the market at the expense of rivals. The net result is...

The chain of production consists of the various stages involved in the production of a particular product. The chain of production for furniture may include...

In the past large sections of the workforce worked on full-time permanent contracts. This was typical of most large British companies. Since the 1980's...

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

Every organisation made up of more than one person will need some form of organisational structure. An organisational chart shows the way in which...

The UK economy is characterised by a relatively high level of flexibility in work patterns when compared with our continental neighbours. The work force...

Today people are often the key resource of a firm and their employees can make up at least two-thirds of all costs. Well-managed training...

Recruitment is the process of identifying that the organisation needs to employ someone up to the point at which application forms for the post...

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...

A business plan is a description of a business and its plans for the next one to three years. The plan sets out the...

The main types of business organisation in the private sector are illustrated in the chart below: Criteria For Judging The Success Of Business Businesses come in...

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

The main types of business organisations in the private sector in the UK are: sole traders partnerships companies franchises. The sole trader The sole trader is the most common form...

The basic economic problem is that resources are scarce relative to the purposes for which they could be put. As a result, choices have...