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PRINCIPLE OF BUSINESS INTRODUCTION

   

Added on  2020-06-04

11 Pages2930 Words190 Views
PRINCIPLE OF BUSINESS

Table of ContentsINTRODUCTION...........................................................................................................................2LO 1.................................................................................................................................................21.1 Characteristic of different business market...........................................................................21.2 Nature of interaction between business with a market..........................................................21.3 Organisation goal may be shaped by the market..................................................................21.4 Legal obligation ...................................................................................................................3LO 2.................................................................................................................................................32.1 Business innovation..............................................................................................................32.2 Model of business innovation...............................................................................................32.3 Sources and support business innovation..............................................................................32.4 Process of product and services development.......................................................................42.5 Benefit, risks and implications of innovation.......................................................................4LO 3.................................................................................................................................................53.1 Financial viability for organisation.......................................................................................53.2 Consequences of poor financial management\......................................................................53.3 Different financial terminology.............................................................................................61. Assets..................................................................................................................................62. Liabilities............................................................................................................................63. Expenses.............................................................................................................................6LO 4.................................................................................................................................................64.1 Use of budget .......................................................................................................................64.2 How to manage budget..........................................................................................................6LO 5.................................................................................................................................................75.1 Principal of marketing...........................................................................................................75.2 Sales process.........................................................................................................................75.3 Feature and use of market research.......................................................................................75.4 Value of brand.......................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................91

INTRODUCTIONBusiness management is very important for the organisation as it has direct relationshipwith its outcome. If company effectively manage its business activities and function then it canget the huge success in the market. The current project provides the effective knowledge aboutthe different business market. Business innovation, Model of business innovation and supportbusiness innovationLO 11.1 Characteristic of different business marketIn perfect competition there are multiple companies offering the same, or very similarproducts, and even though there are many competitors, none of them are big enough to influencethe price of any identical products. This is where there is a market structure where there are somebut not all the features of a competitive market. (Mitchell, R. K. and et.al., 2010) A competitivemarket is one in which a large number of producers compete with each other to satisfy the wantsand needs of many consumers. In a competitive market no single producer, or group ofproducers, and no single consumer, or group of consumers, can dictate how the market operates. 1.2 Nature of interaction between business with a marketB2B customer interactions are influenced by what are typically long and complex buyingprocesses and tend to be more relationship-based. Business-customer interactions occur over awide range of communication channels, such as phone, email, web, and text. These exchangesalso happen outside of organizational control such as conversations on social media. Althoughbusiness-to-business (B2B) companies use many of the same communication channels asbusiness-to- consumer ( B2C ) companies, certain characteristics of B2B customer interactionsdifferentiate them within the marketplace.1.3 Organisation goal may be shaped by the marketOur radio goals are shaped by what our listeners want to hear, for example if we’replaying 80s music but our listeners tell us they want to hear songs from the 1990’s then we willhave to aspire to play more 90’s music to accommodate what they want(Backer,2015). For me asa journalist if listeners say they want to hear more about a local sports team then me and myteam will have to aspire to offer better coverage of that team. Our focus has to be to give listener2

a reason to listen to us and not another station and we do that by shaping of goals around whatthey want.1.4 Legal obligation When starting a business there are a number of legal obligations you must follow. Firstlythe Corporations Act 2001 has all the requirements a business owner mustabide byin terms ofthe structure of his/her business, an example would submit your annual return.There are legalobligations for most small businesses (Baird and Baird 2017). They will vary depending on thenature of the business.To avoid problems in the future it is important to understand your obligations (Gonzalez-PadronHult and Ferrell, 2016). Typically, most business will have some legal responsibilities relating tobusiness structure and registrations, licensing , selling goods and services, contracts ,leasingpremises ,employing staff.LO 22.1 Business innovationBusiness innovation is an organization's process for introducing new ideas, workflows,methodologies, services or products. Innovation often begins with idea generation, wherein ideasare narrowed down during brainstorming sessions, after which leaders consider the businessviability, feasibility and desirability of each idea. Business innovation should improve onexisting products, services or processes; or it should solve a problem; or it should reach newcustomers.2.2 Model of business innovationBusiness model innovations have reshapedentire industries and redistributed billions ofdollars of value.Yet cases from well-established companies, like Apple,are rare. An analysis ofmajor innovationswithin existing corporations overa decade shows that precious few havebeenbusiness-model related. And a recentAmerican Management Association studydetermined thatno more than 10% of innovationinvestment at global companies isfocused on developing newbusiness models..2.3 Sources and support business innovationInternal sources of finance are critical for firms’ innovation activities. This includesnotably retained earnings, the profits accumulated over time which have not been returned to3

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