Business Theory

Big businesses command a lot of power and are able to choose between working in a way that benefits only the owners, and in...

The international environment is very important today. Globalisation, the process whereby businesses develop worldwide brands and products which they supply across the world, and...

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....

Before creating business plans or when evaluating existing ones it is important to 'scan' the external environment. This takes the form of a SLEPT...

Three main sets of decisions need to be made by the economic system - what to produce, how to produce, and how to share...

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

Banks like Abbey provide a number of important financial services to businesses: Loans provide businesses with expansion capital. A secured loan is one that is...

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

There are a number of documents that flow between a supplier and a purchaser when purchases are made. Initially, the purchaser will want to...

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

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...

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

When looking at the marketing model people often get confused between the marketing of a product and the selling of a product. Marketing is...

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

A market consists of all the consumers who purchase a particular type of good or service. The market may be subdivided into separate segments...

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...

All modern organisations engage in marketing so as to be able to please and win the loyal support of their customers. Gillette engages in...

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

Productive efficiency is measured by the number of units of output that can be produced from given quantities of inputs. Organisations depend upon the skills...

The term factors of production relates to the key factors that go into making goods. It is common practice to break these down under...

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...

The health and safety of employees in the workplace are major concerns for employers and employees. Detailed employment laws and legislation have been created...

Technology is the process of applying the finding of science and other forms of enquiry to applied situations. Production technology, therefore, involves applying the...

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

Trade unions are organisations formed, financed and run by their members in their own interests, and several have existed for over a hundred years....

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...

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

Effective communication is an essential part of a smoothly running business organisation. Communication involves the transmission of information from a source (or a number...

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...

Businesses require inputs of time, information, people, raw material, premises, capital, labour and paperwork. You can see from this list that considerable managerial skills...

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...

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...

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

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...

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