Essay on Business Principles

Principles for business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Characteristic of different business markets.....................................................................1
1.2 Nature of interactions between the business....................................................................1
1.3 how organisation's goal may be shaped by the market in which it operates....................2
1.4 Legal obligations of business...........................................................................................2
TASK 2............................................................................................................................................2
2.1 Business innovation..........................................................................................................2
2.2 Uses of models of business innovation............................................................................2
2.3 Sources of support and guidance for business innovation. ..............................................3
2.4 Process of product or service development......................................................................3
2.5 Benefits, risks and implications associated with innovation............................................3
TASK 3............................................................................................................................................4
3.1 Important of financial viability for an organisation.........................................................4
3.2 Consequences of poor financial management..................................................................4
3.3 Different financial terminology........................................................................................4
TASK 4............................................................................................................................................5
4.1 Uses of a budget ..............................................................................................................5
4.2 How to manage a budget..................................................................................................5
TASK 5............................................................................................................................................6
5.1Principles of marketing .....................................................................................................6
5.2 Sales process.....................................................................................................................6
5.3 Features and uses of market research...............................................................................6
5.4 Values of brand to an organisation...................................................................................7
5.5 Relationship between sales and marketing.......................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business principles are foundational statements that are adopted by an organization,
department or team to guide future decisions. An organization may publish its principles to the
public and a team may publish its principles to its organization (Ord and Fildes, 2013). Present
report will include characteristic of different business markets along with the nature of
interactions between the business. Further, Legal obligations of business are also discussed and
concept of business innovation, An effective sales process in defined which is followed by the
organisation to sell their products in market.
TASK 1
1.1 Characteristic of different business markets
Business markets are defined as all organisations that procure products or services that
are consequently used in manufacturing other goods and facilitating. Characteristic of these
business markets are as follows:
 Business to business market: The business to business market is when one business
simply sells its products to another (Wells, 2013).
 Industrial market: Industrial market consists of companies transacting business in hard
goods such as machinery, materials, vehicles and supplies.
 Professional services and Financial services : It includes the delivery of business needs
such as marketing, information technology, management consulting and payroll whereas
financial services include banking, insurance, commercial credit and lending, and even
sometimes tax planning.
1.2 Nature of interactions between the business.
An example of the nature of interactions businesses can have between each other could
be a baker decides he’s going to open up a factory that makes and sells bread, he then interacts
with a multi million pound company such as Virgin Atlantic who’re looking for another business
to make sandwiches for their flight meals (Spitzer, 2013). They would most likely test his
products then once they were happy with the quality of his bread they’d agree a contract with the
baker and both companies would hopefully find the deal profitable. This is an example of how
good interactions between businesses can lead to great results for both parties.
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1.3 how organisation's goal may be shaped by the market in which it operates.
Their radio goals are shaped by what their listeners want to hear, for example if they’re
playing 80s music but our listeners tell us they want to hear songs from the 1990’s then company
will have to aspire to play more 90’s music to accommodate what they want. For them as a
journalist if listeners say they want to hear more about a local sports team then me and my team
will have to aspire to offer better coverage of that team. Company focus has to be to give listener
a reason to listen to us and not another station and we do that by shaping of goals around what
they want.
1.4 Legal obligations of business.
At the time of starting a business there are a number of legal obligations company must
follow. Firstly the Corporations Act 2001 has all the requirements a business owner must abide
by in terms of the structure of his/her business, an example would submit their annual return
(Guitián, 2015).
If company decide to employee staff company will also have to follow several other legal
requirements such as the Anti Discrimination Act 1991 to ensure their staff are treated fairly.
Health and Safety is also an element when having a work force, it’s important to make sure they
comply with the Work Health and Safely Act 2011. Finally, if company’re leasing a property it’s
important to stick to the Retail Shop Leases Act 1994.
TASK 2
2.1 Business innovation
Business innovation is the creation of new value and wealth for stakeholders to increase
economic prospects. It is the creation of substantial new value for customers and the company by
creatively changing one or more dimensions of the business system (Guitián, 2015). In other
words, business innovation is the creation and adoption of something new that generates business
value. This includes new products, services, or processes, such as integrated supply chain
solutions.
2.2 Uses of models of business innovation.
Three models of innovation.
 Industry model innovation - this is where company create a new industry, move into a
new industry or redefine the Value Chain.
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