AS Level Sat TUN oO 1 Enterprise (chapter overview ead | | | crepreres ae nga 0 economy + Se entra thaw ae bene tht not tp to | rae pol bt tobenft nce 4:1. The nature of business activity The Purpose of business activity Ins ume you new Scppng be ose where ou shop = ‘ses ae bagi product on spp Thee are my die bus bat thy ena ane fo eon tes atone ra pro (spn cis ods gen gs yor ck = The transformation process Gs npes ind sooo tensa wy per onan (at hope cone wa a Inputs Land cy por ce ih he ats Prterse safe oy cages The igaanee of bh aan np wl be arly igh inte pany sector ‘not of sce lable oases can aft how mh fa be pred or Bom may comes can pinyin the rami ose. Te rate of te premises cna "he wosing evuonent and people's mexnatn, Forex, stg ton oe wth arden pig Labour ft lll, hw meas (ep 9 etre) hs Wg {> wean the na ses nl tave aa inace on he ‘ice of ny bane What ls a lca? The ‘li ofthe wring he ang ne pratacton~ pone ‘nd Pubes pomete he suber So people abe = Capital he wort apa ny ening isang we a Te opp aly bates Tie cer aS ‘cplpoent sop ate al empls of cpl eqpmere. The Sour snd quay of eqipmenr is bate cn a serie Spacer owt yeh ie oy Intellectual capital Teena capil ino fe negene ote wr Ts eas te ayo devep ow es, nd ne ‘otion to oolens te px bss oppose, Success ‘oor otis depen on wha sore yor se Pat Bow Jou ‘ico white sy oa apa iv port, the uli of be a prod and herrea, tn cece yt, eet hve son ine ered hstreoues ne wed na produits proces tel whe a 2 ‘tin orb npr are mtn? ov erase nate cepa en eles Ty Poo Chins predic Mont ier crap manfacuces buy in ter pans, Outputs The etc ne my be te fom fond frvmever onesie eo, Tipped x rons une eek ar oc (pnp tp fn eo ‘Seal ood oe» ty sing pros «Sie gS son in Sopa oe Thb aa ene pons ena es {run somes tre seo pods ip oso tn many cates, ahsines provides 8 combiason of oot nt ‘Seconnent snd he way yo se ueted e seis) ‘om uj need fore. Am procs gods etry fom tbe enon pres for em, be comideng te eflecs of hee poset once ou, —__@ | Dabbawalla| I t ‘vey i rb I, an 25008 pope eet nhs (wie y tba Altmann ref tng Sona St i nolan noe The ch kd fon pevottone tnd uke os ing aon Te hrc usar ed up scene deter eon teen nthe no i meen Arf Se borlecolced wn lan tect oh pea hone Ti sie fie ot vey tine al on whey ores wh ln no tens png mang cro He wong aes, The pb ow tits eer a th eer an le urine wi yeu on our funey and em mek Questions 1 Pap he nacoaton proces ofthe baal ‘ems of npr ad ut. @ 2 Djonr bw you wal nee sf hs poses. it ————— For om pce here ea sr of per ine ttretion Prosi inking ies ata ening ‘pth he ea prac The author) Rowing took et Imagine,» cmpuer sd paper nd tr a 9 mage ‘anus fer ber Hey Por books The polis company ‘weed wih he toy sige mung =a Sng Ties, dtibuton bse and aed the memset toa ee of bok Bono nage of books aol em oa eal expense th store Aes ‘temadoratns hs gone othe ea fo he bors tnd in 2 Bk nd io the haa he ee oes Magra ne a oe pe usnees ned to eyes why want to pole Inset ange nd ly rot ey fe So hey ‘ote secon na fw types Sem or rode wide Tange of pods 2d serie? Bsns lo ned dele (Sith resus yw nee 9 pve he product he ‘Sida hy wot eh cuore Tse apa sero ‘otations ive here: How many pape are eee? What {le nese Wi ey te eins? Wha aera wl Be ‘ino What eupme? And e- BsesespendoRada Seep ofgmersing 2 poduct ht stoners ao ach hat ‘Bey wl pap me er han coo ose. 1.1 The nature of business acy Case Study Transformation processes ‘rere ae ny ie oon of wnfomain Teese ince 1 stage carers of mal oom ‘usenet For example nucle component and ald someting new wi on Berson ad oenrc Surgeane tke pple nd nprove th appentnce hoped. Donors, ds, phsoerps pias and ‘Cries a hulp ut pene ome peo ure ‘eco tbe oo sn ae bom ino sno 1 Coma the sion of eelean forsee Fee Expres snd Catay Poe sipty more tens people sound Googe els yo fd romntng at akency Ce = hele you ecm oer. a st pec ie Sa ee [B Thsscce sven nd coy forte de an Helps ‘hebuyer all be propery mare gs Changing ie one fates Wess buy in ‘stom sumer of peor Reale th uy oe Chey snl poder redies e mumber of anacons Sel makes he prose ple, sac: ape on Ope neste ipaenrcnaoensce Questions 1 Baan ie eo te Foden Expo anfomaton rome @ 2 Dans the posible seasons sya buses mi srew Sd chnge ts tafomaton pce. ua ‘wher desing is tasoration process bane pen most corer quesons sch steel of cp i be vie? Ae yo ling rodice hdd, tooo lions of na How mary Comer do You want tbe ale te hot qual of ence wb provide? How many poole Ply av csing no sh? Wi you ener you Protas t popes met Wa wl your poly Dele pole man tr ee? Tow wt you rode the ere? Wa you pole tonne a opt Wy se igh sag levels or ve ore suipment Wate of he proces wi te buses una or (eo and wt lesen wil be nord oboe fom aoe poise You may doaese manage the shop Youel bit gecenrs in yup employ Senso {othe fiance nde apelin to esi dee. You iy prose # geo oes but pf do he ge wer, 3youself and get omone dato proce he he Benen: ‘ema, yo may sare om yous ee Zr A Thee cect hve a at th en Desy ‘Become of omni your tes ‘The tannin posse ongoing ad dare. the ‘upc os price ot cepa or eed toe improved Your tare cng ngs anor the way you pres, ail then onto ests and feces, change un Cucge maya do 1 ect aos For exile ‘Moan conc abou teenie os inflece at frond a hows pode »Creating value ‘lu iscetd hen opts peal ae wor mare ‘fan he apts boop no ponie hen, Fer example, ans sacha Andy Wao Vncent va eth, Dad Hocney ad Rembraee wok te nanan, nd cana el roe amazing wks of a at tr milion f dlrs fr ore hn the cot the Sens wed wp tne poduon. They ested ate va the ‘azfoematon proces “ame Oley as cook, kes sda igeiss chart hte ard vege, thn ps he gee Ih nigu nay and comes up wth fart He hes Ing any eters aye bur eanfonshem & ‘po hat spe caterers, pcs out his estri ls Touts aod ns viewer fr eT srs Cleat bea ‘ened vee cg er eau and pena. “renga can be nein ways thay em 06 He esoae emp (Ste compere uy nem ad hen ae hem bier ‘hom aed ny hemo make en ook daresed whe he ‘Se ing, note ta ulin he pe. rd shat wa ins for 810 toe comes Sie ng Hand so Tunis pled Clo ne fret ened ob the pre abe wood ai ater (fathas ben clei fom = plate oo a then bated ~ is suppwe to beso pore becaase comes om in ‘Soule ate 70) es om South resin WHO enang ov ay und and teeoe ot enecumeg + Onecf tenn expen calles the words val hf Ti de rom oe hes tat ave been een ed ignte by common plz cvs pe of in. The ‘hes we te Hoe eae of set oles the le an ‘Spe beam The ban ae spose be mach set 4 [tthe digetn roast ing pasted hough he Shin hey ae banal fem te ange Boor ‘Te none ta a, Dts might Sn reduce he conf proding be peed Teas tng bck on wane ensrag he bes pice he spi ad aig sue at ister re ot ad. A cies tt ‘Toor cute ae ned be ead ove they ar 4 1 tzete he pred bene fe prod in dh ees te cuter Ts con be dough bailing te tran, developing s unsung popsiton CUS) oF (Sue the ay ue foray gn cy. oop “The baat exons fa been growing ft pea Sowden many ater econ wot the wot I 512, {er Naoal ate of Soenae and Soch! Reseach ESE sida ad esata fe U nem e__ ecneny The Rasa sce now worth 25 tion ib ‘tow Gompare th Us 248 aon mang eh ch Ugg scones ne a "nl ening an ccnamic bom eens bedtng (rm sree sting ood od oi ees. al terra Aneta coy a oe he ‘aed onsen nh a, aad Cb oh tas beni eran the Sand wee Bop nec Ya "Ws ssl of ad gs ees big dace he co offen he eran sow he woot ih ps odies ff Bar ar oa 90 salon ppl, i co Ques 1 Bilal vo pone rete wy the Ran eceneny righ pow. fst @ 2 Danan te posible ees fo Botan sess cf cpering nah oNing economy ————OWhat does a business need to do to succeed? “sucess ned be more compte liye achiw h aepends on (atelier or exanp, hat does prod do Bigot Longe nee hat ie being Sized eve othe comedon? ira combi of pace snd beef ar shown a Pine 1 tow or 2 compete 1 Urcanpnive Toes tht ey oa recy wate 0 eompetos It B be bene cee erly ow =u a be rote pice ow a wells enone ol kts roatve ALA pee ph, bso he bene fees ‘bar given be price the bene offered are eave low (or ‘Gea anor oy gv ts bene he pce igh ‘rte a Te pa sig a te onl hte nd how ding ths mare cheaply oan ‘antotalford we besuse competion wl soca fellow ther ad his uns they need oka ingen td lng aye ‘fering mows compete. Mary once fous useses Fave now depend an tne a esl oes ex aly ep way yeoman among prods ow es, Danimporan ng ok abot how site ths epost in the eng tem wel there bo te ‘hele enor an ens prot ts cs? Why do businesses fail? {Sty ong pwn ee ee Soph tg iret bovenng oa ‘sms wes hye ap oon ate ow ‘Some ep tho cpu othe yey mar ‘Sotuafocnae poco Weep tm vdg he ak nd "Lae tegen vabemsey inept ft meyetsa ey ah Ti * Dc cine Gen pr oie a ‘tears podrbrtve ot erm 2 uaa re yay be gods es frp fing ino ccna toc rn rind Wage sed wa ace of re oe te eye pl ae oe Mproyeg ed oc og ipee ete See 2oj hep me rape nd ean ‘Erne cabled busy akg it compac ca pceaed Enteprenut anaiae toate ek oceor sare Small businesses in South Africa Eni lledea mae 3 ew ea ie se igh pce ws at twoyenn eng n oh i Rereneceieque Snub fine vince woe Oe BES Epcepeneascre ange id dl = Cl pewrmneren tue pie os Set Thy dnl en wn eee sn fem meting ones oe met titan Stiorset ne bing abn norte Syne ey ren oh iintciacnce __ [anotae pon ar cnny ons ene SiccnamimeretcqnournchaSeareeancs | Cymer se MGTclevie inlet mee ere eee feces ot eos demsnd wo make art J SeieiSer trom tantesiaworstins Risk and reward SES ntact leno, dats aan Seeiaeearenre fons bbe los. Many new businesses fa. Look wt che main shopping ‘puncereimvitmuainatni 2 Seyi mecvapasne tntapaear ase TERESI Soaariacoceee © Soeeiteia et pmaaitenm me aso Suing sie ‘lenis amarante emt) ii Siiiier ceualetermc mectane eta anleiegla ae erent Soateerieee eine ace coma as at ats cee ote i et ne ote Sri ea cece SESIe atic gamers Sanya acpssrenncatit ae be tat an enrepreneurs undersandng ofthe markt ac co nape 60 percent frm buses a acourty fain re ‘te yrs OF hoe tat save arte 4 per cat ithe rent ee ya. nahn 400000 business start up on year ow many ‘nous you pectin bee ate tne yeas? 1.2 The role of an iEceneruee cme fete teachin degectpree entrepreneur oe a Thaerenu ay soetnes nderaes po Beas ig threo be dane’ They may beeen by dese 0 Entrepreneurs SEES pt tk tat te cc be scepter sone vio ig esto eo fa re on. owes [etc procera ew bunnes Enterprises the seed in ter evar om sig up sh a8 the Sonn ‘Sil nesdoe cha An comeprenor aes aden fan ong hi own buses These evade cn be ‘Gerke sea Erecpenees sce fe esoes axe ah! Fer example, YouTube was et pin Feb 205 by EhunCano the pects of cin hen ts par Cd ey, steve Chee ant Javed Karn The web le Sy povises proc serdce Hnepreneus ce em _ msi ies and mova TY clips, wel a rer posted Herne eo doing prone new roduc end sro, ger pubic e206 th oud of YOR sid Eine'Sincun, cis Retard Berson of Vin and hi nest Gogh fr 8.65 bln Nora Bad eis in Erle iustzamno of eyGroop conenly haves for‘ an TO Ye ‘ow tusiestes se up many ler ones dng he "Fogo abe wih ny vr he eect rear st (Sree Soc paper eae eval nepene juste ood oa el won cet wold Nave ty2 high ewan om ik bat pice ew vents a ery ‘iy ecure tore so mn hgs at cn go wg. fhe many cess do nt een st launch Ere itso ey seas o e 0 man cash the poet Set ace aent Table Lt sr st aig LN farses 2 fa tessa niente |The pores eiercat TE) donegone curs | meet nese Meese aie thew ih hae pees them prin ot 1. [lk righ | use shane Mowe been | pera rata ‘Sedpactehal” | Beano yu nate at posh 9 55 pe cat aby oF ‘sng what sth pray of aon? Banyan Tree o “The mabmlnsie Ho Kwon ing th oe of Rayan “Tes loa chain of ary Dy sr i ‘ler ting soa Ho Koon Pg steno fod sey Cllrs, ad er pote apa he Vets ‘Wir He pent two mont nln Sngapore as aes ot coon beware Par etme fae ‘ae ese Me Ho contol wo wok a elt and med on one of Hong Ron’ lire swith his ‘ie ese ne ry buses 8 eas ater as ther ream i He ede bse ended odo sxeting ‘heres produce prod for ter ona He ses at pocicing fr thes meat you ha 9 bo preset od tes yor pecs mee naresna by he ita bars He moved the company te oe buses Ou seule to getcotemer iret the ote ey were going bald In Pale, Taian Srp dened tthe so ‘Saceime on cesng a dere! Woe of oa woud be ‘Ry spe wih wr er tan # Rs! wth oom Ths nae he Baya Tee and ou fom he oH neo econ ths teu waud nce mer Hesse se ‘hey soul or empl, tau arte su 2 ot we ‘hos besue being beat Aa agp of py nd they move Ata ces noth ie enor in Bore tented wee ‘anya Tie now he tl opt Meno nt Scythes. Questions 1 pain wo enema crt ight ave Bp sca Bayan Tee « 2 Dic th fies you hk makes ce creeper ba ———__—_—o Study tip Remeber tat any ecb has sk atahed atthe ey ueston wheter worth snag nt oy ‘oasis te protoby of any outcome ad ecce whe ‘heusnes shoul puss ay couse of econ gen ek irs Why become an entrepreneur? More hn 3 ton pope oF 12 ers of he population, vealed et up eso tom Rese ‘oasore nts ats fre 6 perce of Uk ats 60 the oes sting up tow snes an ely 2 of entre conten dg a Sona ve peop ot “Thee ae any arb bag a epee ‘You wl perience pet eng ef ston f your ide ‘suse Inapne bg able ok a= lage sie ted ks that you aed tnd ped Bow + You te your own bom ed up bog tl he 0 Dit ond Ten began epee may be he wy Fora. Seta up on your ov mens our bs 1 ‘2 has you wish Ti ca be alin od ean I edoe mean ose noni four des. ‘Ste people peer woking tes hey ie he Independence 4 You ep the ema yo wo nines fo smtone le ten the evar belo tem, You may ork ‘ey tel and very coy and get 2 bons Do he ‘jr evans wa ay goto the owners 7 a8 ‘ntepena ou seh avo ado any tear belo (you Tre dowel eth f anying gas mrng et soe yours awl 1 Ye ave mare conta of st you do an when ou oR crop wating omc Ane) Ye ft cde io boome nf enployes bene of dave ferme fee woking anon inpoved nance Semen ‘rds the sale, To eid oer rene Franca ec.Questions What qualities is an entrepreneur likely to need for success? sce ou ever dd.“+ pfeil nk ne ase ae king nerd ‘ks Oke sce enmepener ares ep yp {ppote tung teach age expig ese (hips maar anount of pesos apd novi ors {oe sage tothe eel ach cesion ones ‘acon br wo ney and ingl ieee {oe eset let he omeyreaeual poe Study tip The re may verre: enrprenes simple 19s oa) what aes an eneeprnet st 1. Hower stud sogethatrnyentepeness Noe ae ‘lies in carmen auch arblng nati neler. Why do governments like entrepreneurs? Conan emseprene Bacau they vp ne ‘user incon. Ts eas a epee: (rate bead bp toeptneploent wn te sana ( eiminaney and py es 1 Ste crap re exiting powder ad ove new proc an servos Tire ood fr eee ho semore cht and a ily ton obese, Given he enti of entero, aay gore Sewing hep eomepeneuo ap and row he Toes The role of business enterprise —in-the development of a___ business and a country uri ive kn i eo nw Ts tnora to tsaene Sd te coms ote beset ‘Smear epee loose pb ew an ac nye of dens Than ee ben rece (Si and tre bee ower pe ben competion Torte cn a1 wl erp ea moan wih ets eae ad eon rome nee Tegel my of usd por ‘Stain eng pride, Ts a 9 more chee, Sat guy sd lower presence How can governments help entrepreneurs? “Thee ae may asin hh goverment an ep cnepene Te ct prove 1 hice an fl natn phe gested er existe, new steer ay ave ne epee ok Sos eae appre ae le 4 Sing shar gran pt he alse coe [eglpraecoan rae Ha Fo enna pte proves ‘Sglprotcin ora heaton Thiente at vrs (Gh male pfs wihot ae eas ban len by ee. ge you need to re 250000 9 sar you buss. ‘he goer lode 3 per ct an yo sper cant Hr mach ney 3 yout eed 78807 The entrepreneurial culture acon alte neg ce fs accep sigh dn apc! tl it ‘ther vtec eaeape snl pope te oe ‘horn nea empl as pope sa et Sess pl ape em Titctoce ong cy ra neh nomen Yor bso ad e ny fx es oe spe ‘Rrscyourbue sn acne y atom papier cp os yo tala pte bot wi tn ans cce weston ge oe yelp ei omnes oBe ‘Re aubergine ean ao ave sito wages sn 5 of pe ‘Sepa baa Whe a nyt nd ay {Ra and pene onepemnrt oop Tnan ‘stom be homthe osutopenyourone Government help in Singapore 6 ‘ee area gowing abe gore opis xppot enueremantgn Sp whch sheng he (Shy mains epost eonar posion ne en. Te ‘ected aan fens lo de he sce en Segapre, he Coss ed event nd ons tye gorrunet reno eps Deters cr ff eens fhe poet ccna erm cate sak Sniper ah een aon ‘ing take is see eh boss, ase of doing busines unking 1 Singapore 2 Hog Kong st 3xew Zeabnd ‘ed Ste ‘Seance6 Norway 7 Usted ings Digger arte such ndonesis, Masa andthe Pippin [eae ued is pf he proces bung eepese, ‘iss oreo wn A Questions, ssrepreneurtip CT ———— AB... © New York ~ the most competitive city in the world Latin te wore ‘yer, ich lobe, id atone of ene wa a “cap recy nd omen Sanam ‘ snore uly ha rated te ee ies layup: moni a ten ‘Lani an apc pow taco sc ot ay sn sal br apy ‘cmp iy crac nn es ak Satis nehor pn nun be pont es (Sma ng i pr ing eo ee Questions 1 Hepa vo earns why New York may be good pce edo baen c 1.3 Socal enterprise I ————————f) Brazil's business labyrinth of ° bureaucracy oases spite i ft growth Ba emis a oy whee re ‘harehoier i called the dividends Te mote profi fa tans te bige the cvidens are kl tobe. Hach Ye ‘he sureeldets wll dee on he xno of divides 0 be pale per sae the more sates a peton the one Alves hey receive In Shares aa ao enc he ple of he snes. uo per fre pe he ove vine ih ah shares work oe ete S,by bung more ates, people (aa gto wre a hae 3 ga nlunes ovr war Sem actly docs anmeane ow hae han 5) pe ro ‘hese, hy coal the anes an he an See company pli compacts ms sve a Aaa Gener Mtg AGH 1 bio tbe rhode arid aod ever sharlar ‘ma eae a copy of he compaays Aa por Te ‘su Repr eet perma of he bis ore (bela year Are AGM te deen ad manaers ve ‘steve fhe conpinyspoeon an opens 27 ‘Seaton a ser gt he Th Uk, facil oss bk, pension de nine companies own ce conga hares These ‘reese y shares mie pro togh he dead civ dy cing the shares Higber pi te hey antes past tar profit ono comm ress Private limited companies Pate ied companies ave! afr te ames They ate ‘ed by suahcleand he ower can ane eons nov the shares tn he, Por sale, nny ‘ut nora peat ined copanies re ed yar: ‘whol hems of ares tah member fhe fay ht Fines ue ude’ do ot Seen Ont ‘Sar pete eed companies ant veneer aes fee they hve el hrm pray Public limited companies ‘bine compere ert mane One ois thywv ont cet tee pee Sohn scan cn begs oe ne se ‘Tuer Sl ple coupes cane i ae © ‘whneer sans to oy then Ta ca ease peoblens antes ‘em ar by op shares the bse aa ate a oer of Some ofthe tole may wan ort tae ‘akeover, ut tie caao: sp few sharon for eng ‘her eh ‘Another difence ete pl aed companies itt stores in pls aa be sve a he es. Ths 6 hy you cn sete sae pis of publ compares sed nthe ewspupen, tu not hse of pe companies. Moe samples Secome pic bn hey wat vere hae te seer ble ad ae ele lage sume of money. ae {ule companies bauer han mos pat companies. Fe owner of pate company dono need a ge sane va the ae cf sue aod wt mun oa one ther company hes hy petbly won no wt fo mae 2 ‘There 250000 staresn a crpany You hv 00 sae, ina peerage fh company do ou He? Cooperatives other fom bss know a oop {lope basses ones in et ‘Seto, wher they a corner employes ers {Thermerbe of comparative have ea vg gh and sori decry. one, uc omer or este, ‘an ore ot, cn hen by wong ‘ogeher shag the pote sa way keep a and eke eo Tater dan tenaig cue ovo a copesive sae pote song te meee. oon 19 mon pone ‘sound he wo ae emplpe by coopers, le ey “Thee ave ees fas of coer, uh ‘ployee cooperatives Toes car wen the bea coed eal ya te employees who wos thee. Eck tcployee save inthe buses desons nd sares lhe profs The atvange fis sat employes ny beimore meted o make the busiest ices becuse they are paromnes One fe protns howe 3 ha ‘cin aking ay bel everest exe Dot disses. Alo You canto sl shares hose siete Pres oie Race, wich igh it acest tof, 1 Community cooperatives Tee ted by menbes of ‘imeninny to roe slo sence aap fie us 1+ Rea cooperatives These os when seperti Fin ogshe A goup of inepender sores nay one Teper and oper der one bande Tha es hy (hn getter des om spies by bung tak td can ‘avenge[SEER re (Cooperative facts and figures How do franchises work? Discussion question Dominosbien The advantages of buying a franchise iy av nor aig power hn you wold have oh Yue rote te rn on 3 manor gal soe Ay ave fr You wih decion sch a ping. eons spline aod ening bead. Ts ld ede he i of someting tg wong bec tree more experienc, at power {sie ae ys war np ~ ‘on our own, Thi bese the pt da fox you © aelee Inte eg wher or ato g ead whee Ae ‘to tine twee yout ono bes nd oh tal The problems of buying a franchise Toe se obvi probes with upg che at ‘rudd have dons on your own Whe: yo re er of “ans ate dopends ons sues onde ems fonds of he oe ough one tthe aa bens of bag anche ‘sa aswel You became dependent on ces ad vulnerable iene ae poieas chew How much should you pay for a franchise? ily, te se towel cen peo payments cd a for me : Se at On tp a Maths moment ‘anc asx $1200 ee ah yar pr cat St pts ater lead ae se ald “our reanu hs yori 650000 Your cts fot neg ‘yon cc whe ance) $2000. Selling a franchise cigs he ac, rcing ao way of wowing tI ou wee ing ‘ogow tse on Yourown You would have ound € franchie, thn he cows of epening partir out fll (othe fans This may mae fos growth 0 0 Feuile Deas inv peices ie a ude thee om ‘ster: Dosis Pla, for example, fon 1980 ben nti nin a oo loge However, tough fecisag th busines gro © tec the wed erin pias dive. The onpacy 95 Dries rier hn as eg pops of ge bse. “The Ton ng Duss es pba bandwith 85 ‘Sonal orth werd inure n Qs Fane, ‘when be was a bor, Too! would walk home from school pest Iris tadesing lon ‘had mol where two ak sy changed when hs fhe moved te fay fo ene, Naa, then 2nd aoe by hs el mame of Gace, scmngs dept xanga ck a ihe Ie ‘hie but sat workings thers aeing bane “Tony sare in 1983 when Toad is rae \Szsano~o danged 5 ae Guy ~ deed 6 open ‘sown ona Capa, suet anon Ober bases meres apt fe he sos theese noe fhe podicton nd dacsion of produ ud nd ln Sze Staton Teepe. 15. Oca 206 Discusston question ‘Do yu thnk the banat del apy To! Mio ‘woe efor ahr hese aso? ———t) Study tip ‘When shin faehises ou rest compares ay of ‘ring ron busine wth aerate Wa 8 is eens and caderages compas cher Wap of uring nt What wold trae whether sn il ‘hs eter tag are’? Franchise Daly Breads ening baker in nha ey ted to fant operates coy. Daly Brest 20 wor adn and ao wns gow i argo, yerod Dahan er cen he cy Why buy a Daily Bread franchise? (9 Theood ant bevege cn i gowig at te of 20 percents yar Ths ates good ue te. fe Turban fay ebb kh seas You hve ‘Dal eed ens ou a bse pane: 0 you cn sare {Jo ewan ides wi een be ane (Now aves empnsed tane “Thee been handeon aig nd por. What isthe profile of a Daly Bread franchiso0? 1 Por expense nthe hotel indy wou be wei nr hood havea dave fo sce and be gly tated doce. 1 You ned end ioe Deen Re Lace an 1815 es Cae ~ 10060 specs, bout 70D, 19 You waeo rep youl per nt ht nestor som. teaoae [upwm sas os oo k [up R IOI int poReus So Ae rm tn in Questions 1 Bagi why Daily Beal mig ance ts bans.) 2 ul yo bya nt i al Bread? 0 ——<$$$$0) Joint ventures ‘lovee oci wen snes cb oa pt {to ac foraly on echo a aie Fr exe, {nthe ar haury manber of uracren gh she ‘uch ents on oping ots bathe woul compar wih di bet moc ne mace Easy te bares my heh rc i for 8 ‘ene When eateng shew ma ene 3 cmp ay Setups wom vats oa inaoar ips coe {nd dev te netwas oes o drBteb pee. “Tue teoe foe eer aha | busses cam sae sly cues ad expand erence ica eh beh pare “Domes can caliber co pens te tay ‘Spent han hal peing gee aed mee) However may be tes sch a ‘tgeingca the dion of te of: ce may be ‘econ ove: he reat costo eh buses «crews onto deo sul be de od oh be oer «tee ve on wheter sd ow oo he vet. Changing legal structure sey ooo fr someone st yp in bse t3 ‘ele ner antenna eb a ph sedoan en hey to ale Rd fn lig sae ‘ean bens feed aby. ‘oopente as kd cory abuts mst ‘suv acres y a tnepend scouna (Cad ons ech pene bla of acces ch arvana pois ah «publi tise ens sch be aes of company nd anes of eco “Tas mean the Bins fs af prime company ae mete ‘penta hae os cle ener yor mato Ep oe ‘hogs pote ou would wane mint ane eer Test your learning Short answer questions 1 ol what iat the prima, sco and teria tas wih an sample cs burs eating bneschone 2 whats direc wen the pat sco and fuse? 3 2 Whatismeanty aparrastip? 9 pn one atari tape opi 4 whats meant 2 exund open ur eration! sn goer 155 of i Today hy prs Osan wre ‘ovetbermunbe on rab agi font "2 marks uid Uk So wwre aoa "uc a are org bv an utonng rata ‘so ees the Td mae 208 gh he equ Questions 1 Blan bw the Teco employee rpm or ‘Ritting ight hp heGaopeny to aces ejeive goa They 6 ny sed bec, a ——— el)Corporate social responsibility as a business objective For example my wants boos pos but ese ney be snaz of is nyt on cay 2 wl dhe eronmene {i pa ay bane fl ve in eponis © ther groups yaw Foreplay ‘slomatnbnemer aes povise shut tip a ‘he poets ob ken ome he wong event safe [AL hues shoal ave an cpt of acing ea, Homeve eaployec ive a good ea pth win the ongaiton ‘blo thas eponsty o xp people yw as ch ttkng 3 ong 8 psibie and ling cn oe money Seer tt sod iat ol coy inrove A busiest ht acs respeniy bles i capone ize do mews fo sxe tanto ew [! Intel sets itself social objectives {in Malaysia ice Including telephones and computers ‘more than 62000 "ar deat, we wil ret td een compu logy © Sineeniy Inia nla et tal he bec af enc he gy ollie he crams in which ey ea week ‘Smcas of achoing te mason Se 0 ce dade ‘economicsy-ceavamaged ciléen in Kull and Penang ‘en hey sat cool saben 196, he oan [evince new school bags forms, Ses and sig isa eet efor ard the region Toe, Intel Maio hs orn ME 95000 CUSSEB117 fo an Questions 1 sng exarples ea the fence bemesa isin toa bjeer co 2a) Mission statement, objectives, strategy and tactics be detained bythe owmee othe busines The son nul astenent an une objective, shther crthe mises of ptenge, or peep heel of wee sages hae Hen te esas cae De owt aio en mow ctstely Teanga pono? ‘cher an cbt is known a ste Percale ‘bashes wed wean prs by 30 perce ee este enegy nigh be urge oneness che‘ef Teco Inthe cases aboe. However hs seg ie ‘obs put io ston or empl dion fs tee oo ‘whchscunmar we urged Tasco ley tring Cha, [nat Tey to acleve te roth aban Hawee, (be deco vet be mae. In whee wl he enter eta? Wht rose wl be feed ic? The Shores tm son pli int contin emake up ie segy Zz] er} [eee [ome] fe @ The importance of business objectives unr cen su what he bes ato achive ‘Tas pov oa dao Eppes Eno wat they supposed ose aod ca thn ae ate ‘onsen saute reoices to se, Wado ope ‘yloyes dont kno the pisie ant dor tow how ‘ect wl be enc Th ad Jo of oa a ‘wee eof sous Objectives cn notte enplyees by pong ae 1 pies masue of cols popes a be evened Sonne he ore TE) lein ettemertsnte at el poo be, Dnebiecive sureties mason ese ‘Staapy ste orgie pina ae ected nes ‘Seer be erm cee gent egy 4.2 The role of objectives in the stages of business decision- making Managing 4 buses vce ay floor dent. For example ecg on tects, deci th be way oF cng hse hc aerate pny tn, ud desing how ohn the enngy sour sd am cepa eat dungh se of appropiate ating te id decison hele ingot pa end mages Dessorakag ves «+ Senge objectnes Tis exert beat he sess fata can ony Be ged agate ejects tu were raking roi 10000 my be ppg he ee wn $9000 buco fe eps SSDI is Ingo ove rei an sea ee + Gathering information Defre ou scae wt yo es append hs our pins et ale nt Selecting saab strategy Having analyse ih inrmson oscar dae one Ses step Tor exam peg te + tig iy ie ct omen 1 Neviewing Ts i essara see how you have goo tod whan Yo an cone hee techies al spree root ou iy ens ne hger ote aes or oO © = & Figure Te pac ceonng How objectives might change @ over time ‘Orrin the oben of buses my change. Tic be ‘oe manyrenens bth eel (eee ene) ad exer (carne be btn Internally bss may have new ones snag sho want chee erent hinge. Pap thy wa ie Suan gro fee orexampi or ae re cre Abou te envied oe busines han eos ones.‘+ Rvemaly Pp the econ bs gone it dcne snd th ctin ees wo edie as pow ‘utp compe have eee te ade, wich ens econ anak sa comiuous proces which econ ee ‘ng lan and eve and acm obec eo Turning objectives into targets and budgets ‘he ove objecvs cf buns ead Be cade do ‘edepatetl oe en niles pple, Ug Sens though he craananion hele ears ereyone tring ond the sean Wi exch cetne ee he Tater of lw tobe aire and peck ciel lege sowing he ef he aes ht end oe ndetaer& an wlebow- voir che of ae {hatte 0 Shen tant be doe ‘ow ch ey ae ped, a 5, budge as to agen A us na Rul we ht mh ck ‘peed venta a ante expend Ts el ‘eh esi pacing. The de of te bgt Wl pnd on hte cbjosve a nat hare done osc ors) The communication of objectives and their likely impact on the workforce ‘he xing ebjecve th shuld be dei ston wh she peoe who lb response fo achieving hom Tis ‘heal tip sue th ees ae rite sd at he {ool oem hing en ae Foren an enplye they aye very alo eve cease they my oc nk ea or eve pose nan oeive cab vey moda bse proves a seas convo poe how wat they ing sn iy an ow the et al ef {ee bres en srs eee wee et tno thy be sone to for and soning at ne However oectes may deta the pen who cert. fan employes el they were seta ure: at ul ao rer rid nt have te ge to make pose they woud probably fel dened Ts means ow an abc sat an mat sores ele 0 or Remember tt sme of he busneses ou wi encounter Inquest pups my be ge oes a tht is ca po 2 dhatenge for the bias to commuiat carperate tjecties ear Ts problem canbe ore ses fe buses apetes in ferent counts wth erent languages and tine ones. How ethics may influence business objectives and activities thal betovurs era at eo bry cane, dren ems sae or woos trms of busines behaiow Fo exe, {Teheal bebavioue sll cigartes you know they fan casage peoples nt eel produce & 20d or sein if the procs of producing cages ‘he entconmen Is eet how asteizenae ‘hides oy becreen che’ lesion programs to gat the creo ponte the parr 0 buy them? Manger fice eta! ce al the tne in all eas oF busnese. Sometime the objectives of te boxes cn (emaly igh sleet ey might cede tell ting people some of te proemsta might cma ws the prot ey don ss Te ie bosses can leeds busines employes bere bya recent Jere ‘companies have sol people plies tit were uniely 10 ver pay ont or bak fave oot tld people hey cold be hang higher eins they change a3 ferent ype of teak seouat This beavour i usally den By deseo Ii bigh cp ithe to keep ab ot er bonesEthics at Texas Instruments (Tl) ‘ane of ec pd nding lary epee {ait emplos 34500 people wake. ‘Ts toad of deco etd a eis ein 1567 nt sppotad he companys frees deco secs decor ‘nd sal have de mary acon (tema tat bases ple an pace ae cotcnly goed vith eit pales (tea commons he xpecatons 1 prance multe hanes oseedinc ugh wh Shaolin may sa questions, yc concer a eck ‘shin of etal ites. ‘he companys wee mae sil poston dex ‘Oar halenge 810 poe ie cs employes may need Test your learning ‘Short answer questions 1a whats mart bya busines object? (Gowan earl Sete two features of good object Dene he em isn sateen ‘pian one beef a mutiatoral buses of awa men saterent. Whats meaty thet corporate espnsbiy? ny crpreteresponsbty portant tan ot expan sch? Wing earns, dsigush etocen satay anaes pan one poof tay a bs haters raw mares estas ight adopt 3 1 Whatare he sages inthe decsin-maing rcs? (3) stato ass wy itisimporart to avew ecsone a 1 Def he em ei. a 2 Goshen wy shessty eet ‘econ Bi tli ong manny segment make gh be apport econ gy We nat 0 ‘ue ey hve # le andestuning fell es ‘epson tt ove cr operons a el au oon ‘ther, papa and etl expec Sc hte eT mse nc Questions 1 apa wy Tens Insmen sou eee cova @ 2 Duca te ee fran agen Tea umes ‘pering with eheal bei ar ey cbc a lee inthe bonne 0 ————— ‘of coe, nel Sesvou doe ot ave to bee eee ‘is buamcens mt be lea tev ey pet en oye nso ow hy ach te pe Tse ay a ‘Bie cero employes what what teed ss coptbetehoue 9 Osine beter bust 2 Gekinone adantgew abuiesof tg abode 10 Bilan wo reason hy growing inset iecves ght change oie. oy Data response question Actterentbonk "New Zsa as fe major banks which ornate isbarkng rar yrs apo, Provide ak opened is fest ances In ckand a Nlngon ad et pty The new Barks Comper becbesncuce arn igh sec growth ad esabsting 20 bres ough he oy wi sist thee yes of vara, ‘Thebans minonatement ih set ats Conmimant toa igh andes of tre sce, T us prominent on tsetse na ean rh ably, Ire ts recuiment mate Posie Geharset outta denise fom shal by sdenig soniye copra ojees whic ieee Steyn tacts os not mest nbreses whose cons nog he ener tse hat sup amare. is ‘scaron neat buses Bs ages ae nh te ‘Subihesbans bus meg s dsncbe ne reeh "Sige at sop to wey Ne ens, ”1 Bane tems 23 corte bcs b act 2 Bie ara theres why Prien Bank consdes Is mon ster tbe portant. o 3 Discus te casa ard ash Provident Bank tootng thc comers cece Essay question Dis wheat sting ad montero ines jeies isa part fr buna tat ae gen 20) 110) 2 ast paper questions 1 Discus how the chats of @mentacung Busnes right be fected by eb ses ra Canta ral AS and nel ue Se, “hor fpr cso apes ne 2 tes te ex crea case study npg 22 arden arses heli ueston. Dosh ret o whch ers oral betes bg shee to) ambien aan Ane nesses ‘arora aaaPENSE] Section 1: Business and its environment 5 Stakeholders in a business ~ Roles, rights and responsibilities of the stakeholders[aaa ia aac came ee re ee Enis ete [bowen ieee —[eiepidmimc ee |opminomaoa | fencicysanas [reaceccerte’ | ponent Smiaies |motwcteen lt t Frcmad by mangement | Frames [steamed ig oon to Geersat [rp wine | Bp ‘hcssacuewe |en cmoben Cs ee ere Teresi rat | salys cess Sieloonmscac ss [tds sss er sac ses St nstponraa [arma ‘scree | Fimba—feremmiaisat | woremcesan fe Srnay fences |moatneay Sect) ees ‘orm bec eel Gold Fields Ghana engages c stakeholders Goleta ecu age roc of ol ae ‘henge peat sear emperor 3200 ces £500 inde eles ine moe Incheon ‘sos sa steno sakes The aim eo engage ‘han Up ysakehaes en operand acer “hose te inde seermentinae, meme of ‘he communi, nada ions, venir an he mei “The company i commie suse developen tar vane in wceconomic develope ees Se conminey wh pete fe iesmee fe ‘unto het ser ad siaon athe development A ess wat este lan hs rece beta costucted Py 12 Tha provides comme with aso ‘wee The copay ha sloop ll wher in 97 pct of th wertoce sre Chane Sure Adem Ore Questions 1 plan why employes and uses mh be old eke Gian mor aaiaeldo ry 2 Dias th exert which Gold eds Chaos muy ive eer belgie for! ta ——— 5.2. The importance and influence of stakeholders The interaction between a business's decisions or actions and its stakeholders “Any osines deco an inp on sabtolders Beagles Iabde be flowy 1 Bnpoyece may be fected by deco 0 onthe sn of Sasol wi eae the pro of the bia se peor 1 Spite may be afeces by anaes in ron ad bese ‘oom et bushes. “Th communy may beat the expen oi ia sel gerne Being eed an Senne (Te goverment ny be ated byte cretion ef moe obs ‘The mac of buses seri cna be postive esse Soames one pop nay bene aber may sll For ‘ramp + coon ot wage oul tbe popu ih ‘i ara ele ihe vent forth vests, Adesso ‘ait poaacing sad wold nbn the german, ‘cia oun Dt ay bent tbe come wre odicion now oes "Fateh dono elm changes they cin ke vous scene avo ec of them The allowing 8 eaipes, ‘acon thar may be len by aba. 1 Swholr a al her sirer anne lewhere 1 Dine can reir end maw cage mone fr buses1 Rnpayet con eave anwar tere 3 ou hy aye suite ao, wih ns they ce [Baur hoping og the bins change py Accountability to stakeholders ‘Accu it bi engi pe0 SNS Seal epnay ein nr ih buses The shareholder concept he Sse eh Ye ORES my tte oa ‘will not think they have any bliin 1 invest more in thee Te cu nel desu ose SEO sees (Milton Friedman (1912-2006) cooky, Ne Yad a aly 233 soveral ae scholarships He sud a a numberof nang "01946 Friedonn was appoimed Poesor of eons 2 In 977 sped 6, Frocnan son bagi oan seton fr Ns tins of a forms of government vente the ecnony Ths bright hn uo soe wth econo ch [ic cabrath, who spponed he eznomic ews developed oy Jo naynars Keynes, lesan was athe bal of is yowes a thee an 97s when be the emension of ree market economics zn te eduction of these a anaping th economy any of ews ted + meats sek esponsiltis by mht, ar example, eae at svernet Pcie ie es fa sore expnsve ue, ean se el sang noo the aj that pro nd then by une resoresas ieat Sanford Univer hong Prendes Regan on ezeooe Fe din Noventer 208 athe geo 94 —————nt) The stakeholder concept ‘open pach inom esr coe Inna woul ave py) wllend a beer qi supers nuh renter Rely by spit lp ou hen teeded Focusing on employees tees nd showing cence %Stakeholders ina business (Case Study Hitachi igure i Japan, ooding in Thala ad erga in “use ies iyi nats Tyo, whch the endures the company, was partly bay afeced by te “panes aaer These probiens ei dupe Be comany’s ‘ppl un bt the bles conned to seers good ‘aru The ange ble to siya och CGeanen wa ues aakcokdr, The copay as 2 {rod laoahip wah a eller sealer wou ach Samtomen, epi canal ovement od veoue prey soups. tn Deevs te enponat to bes goo corpo ener For exile ss ht ennmental er sucha ‘imate change we booming» poy and tere eres Swovencs ofthe elaosip tween bsneses and human rahe. The UntedNatons has aed companies to ake ot concbtons sxe, ail tough crpee cial, whan ee om he eionme bi abo seating ‘overy atl protecing human gh Hach iscagec odo pee ‘os to Coe on ines Got Questions 1 xp wo ways whi ci cou ca to be sed corporate cen 2 Des whee or ot woking Wh cakchldets ays Rises. ‘oa A ‘Abuses is made up of people na leet ins Sed sometnes ey eet vies on Way Waa 2 ‘lve anc how hey ti soul be active Ay jo ‘econ ey ake ome eter an thes wns ‘fs iethetoe ct et wah postion fom some saietlde rer decson wl veve fien sakehldes20d l casi tects td th ave power Do angst ‘wert linen othe Do mags edo en te? ‘Won wl happen manages goes Thar sa fe ‘manager obsess ns otk bo i eve ome ‘Awalored works th unload, or expe, say etic to negate fo mot enon ae parton In secon mating han nl employs cov ont OF Mages yar to ame aon on er wh ‘os pr cnt th onpany compar wh one who as {per ea ey supple of boeness mae cope: Wl hve ae iueso tan he applet os component at Fy Ue boa n ousna of torr So he mre ered ‘eal ge tbe more manger nea ple ‘ato, te mre ey He or ape wih hen ad ee ‘pcos theme they ae het buen 2 managers Thee feet alder can be shown ig sche nop aes ae ce | ti | ee we a Sgr 3: in ap oho sites ew Crops in guna Dare iy indence deci a "They tered in wat i og en in the snes ane vee powell eg mh eon), mange wll seo Soep shir happy ‘Bp compartn, sachets in usa: Aen vey ‘esr a oe poet (ep yur mil vey soe ‘rls nensgend, you do ot eso ways aba he ap. How conflict might arise from stakeholders having different aims ‘One ofthe sues when deg wih aka atte ‘righ conficy might a be pb pe lof he ‘pospeal of tte, or eagle 1 tovescr my push or lower cos ores he rsa evar ap thie may ldo ewe ome pa rer plo. in odurin met come dean fo cheaper pos She Bess ay reese oceper pot fies ‘rene o peg the cel era. 1 Inererto meat goeraner dea mare cvtonnenlyfendy operons prone he buete "ay change ts prodacion ste, lng per ces tnd higher prs for ees Abuses sy bv te dilrent oranda Compromise on eas,5.2 The Inpotance and influence of stakeholders Foxconn changes its working | practices 1 eceat years working condtions have nroved enoraaosy a facones owned and oped by Foxconn STamaorbatd econcs gant and Aple's Biagex spp. ‘report note hat Ronco ha eae changes! {sd eater promised implement. 8 a res working tions have rove sabsanaly ts wo fciois In Sheranen snd Cheng, where mautsrars Applet |Phooes and ade. swe cng ovine, a aged bah an ‘iy semen Forsna fsb prove the Ss the ‘chines wed iis coer owed reptie a in, ‘uured all equipments propery maine! android ‘ple bre al engl, “Tee changes hve alowed pons inthe of woes comeing seo dangerous wea cons a exes overine, Focom employees wee eps work nevenge of 56 hoses wk we Chins aw oly lows 3 emu of 8 tou Teconn find th wrk te wag on he iid lyybeceen 16 and 25 pent ing ase say of ou $235 Gn Yuu, This ste ike cease Into Year ‘sich as es doled sis. Test your learning Short answer questions 1a orfre te wm staahllee a explant he Uk gerne might be aan oukmaise 5 Doisn pow tunes aneploes hove ‘spores oon anor 5 Disingush berwcen the responsbitas that buses franfocuing chat nd terpenes mht oe toc comunity, 6 2 state two posite tat snes ay hve ‘orssupales, cy » slain one ay econ ola eters sels {fa econo dose 10 per et fis sogs 0 Irae peaty. 1 suze two geste spensbitis the san ‘orerert s buneses. in aw ne adeno an clive ot ‘posh ht feo one seme Questions 1 lea wy some of Fasc steels might so ve pow ole cnge atthe company hes cemented 2 Daas whet’ Fowcoa hasten he ht ecson Oy ‘ucducig tee changes. a —————Y How changing business objectives might affect stakeholders Astnechjpcves ofa badness age tis ony wel afer be ‘aya sukeoles. For example gee emp on ‘vce ss ny kad wo ore once fr toc a5 ‘ve td Mire pening and four on cylin, eng Sh les mse a8 potion Osan or hero 7 leet sive orci coe i vem ning, ‘wee ad eer Selene A fet on ter GUHA [eo bees einen of pin. On te oes ad reer [rosary menage Sat bk ring and car develop nd ene en hey mig sho train ard push down ces sop. ‘ister dilemma ecto all sakes emunensy pec at atin ange when ‘apr arte decs uy Bele jn Oe ay be at ‘beter sone bmi anya pombe 6 & orfne he term scl etsy. B 1 li ene isn wy a bss right ws 0 ‘sential bane B 7 har wy 3targemartacur might epionee ety meagre bec of sare, deaitseutererssruans 8 8 a state two esos yess might sh tobe couraletotonayees. a 2 Blaine way nweich aera be scone olsen B 9 usng earls ela te deren beeen the Sakae andthe stro cones, ® 10 cits te senile tof hott decom wince irprca seat on two os skal gous. (5) Data response question -Acang of pprosch ‘utan Tees ts ha crane be Re ‘management io has deed to lerma2 ange poles ‘herent rst the rents lof esl ath han ”Eb sictiies ia bsnss ‘ells shrtoles. he option pls bs on the Satie anap os sgn oral the Campanysstatenades, Th cmpayha aed emplayee woge cur he rot few yeas at atin nes af he cat ae ft {cto npr wore codes nasa has fled Spies ore fount ce oreo encourage eng ‘esis aso events antacting process > ‘nbn te pact fhe camo enol the fealcormay, ‘The conpayhas ong wasten of manufactur wees a ‘hereon na good reputation Ws pol ao ‘Sattler hae ected sare dtifacon# Gn ota or th st fe yen. ‘uestons 1 ain ho tome hotter B be skahoder concept BL 2 ley else Beals to Mata est of melanin pales aston he setae nce. (6 » 13 ics th se fran aps Nita ets id retainhg sero appech based one setae Cenc 0) Essay question Dus whet ti peas es re tintin pany osu ts slates ly 0) Past paper questions 1 ics ow the tects of sake oupsina ofan bons mah sin conf. eo) ‘rarne Gea 8 2 fend te oes Wel cs tty on age 212 and hen rane He oowig istin Fouts how stkehdes inthe fam, cher han oe, right acto eprops onan wih Winds. (1) ones eran Sara Ln ste "T” Pp 2 Gad oat 203