Chapter 1 People in Business

Business is about people, not just customers and suppliers.

Stakeholders

Entrepreneurs
A person who takes the initiative and risk to set up a new business. See a
gap in the market for a good/service.

Producers/Suppliers
Entrepreneurs who supply the market with finished or nearly finished
goods.

Investors
A person willing to put money into a business venture to earn a return.
Would weigh up the pros and cons.

Service Providers
Organisations/people who provide a service to the public/business e.g.;
accountant/banks.

Employers
A person who hires another person to do work for them in return for pay.

Employees
A person contracted to do a particular job in return for pay.

Consumers
Person/Business who purchases goods and services from a seller in return
for payment.

Interest Groups
An organisation representing a particular body of people who have a
common interest i.e.: IFA Irish Farmers Association.

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Interest Groups

An Organisation which represents a group of people who have a common
interest and similar objectives or needs. They Lobby the Government,
Local Authorities & EU, they can form Pressure Groups.


Business Associations

IBEC (Irish Business & Employers Confederation)
Represents over 4,500 businesses, Influences Govt, EU, Trade Unions
& other Interest Groups on issues affecting Business eg. Tax,
legislation, wage agreements.

ICTU (Irish Congress of Trade Unions)
The majority of Trade Unions are members of ICTU, they represent
all unions in discussion s with the Govt, Employers, & other Interests
Groups.


Trade Associations

IFA (Irish Farmers Association)
Represents Farmers in discussions with Govt, EU, Trade Unions &
other Interest Groups. They can also investigate complaints.

ITAA (Irish Travel Agents Association)
Represent all Travel Agents in discussions with Govt, EU, Trade
Unions & other Interest Groups. They can also investigate
complaints.


Other Interest Groups

CAI (Consumers Association of Ireland)
Represents/Lobbies on behalf of consumers. Issues Consumers Choice
magazine.

Residents Associations
Represents residents of an estate/area in dealings with local council,
Garda etc.



Relationships between Stakeholders

Co-Operative Relationships

Where the parties work together for their mutual benefit and have the
same objectives.
Less time wasted
Business obtain better services
Good industrial relations
Customers remain loyal


Competitive Relationships

Where the parties have different objectives.
Leads to better goods/services
Better work among employees
Rivalry between employees over promotion
Closure of inefficient firms


Dynamic relationships

Where the relationship between two parties changes over time. A person
can always change their role within a business.



Solving Conflict

Non-Legislative


Talking
Negotiation (Offers & Counter Offers)
Conciliation (3
rd
Party opens communication & dialogue)
Arbitration (3
rd
Party opens communication & dialogue & offers a
solution)






Legislative

Law of Contract (Common Law)

Offer
Acceptance
Consideration
Intention to contract
Legal purpose
Legality of form
Consent to contract
Capacity to contract


When is a Contract finished?

Performance of contract
Frustration (if one party dies, insane, bankrupt)
Agreement (if both parties agree)
Breach of contract (either parties breaks a condition)

Condition
A clause in a contract, if this clause is broken the contract is over.

Warranty
A warranty in a contract is less important, if the warranty is broken the
contract does not necessarily end.


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