Project on Principles of Business

Principles of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Characteristics of different business market.........................................................................1
1.2 Nature of interaction between businesses within a market...................................................1
1.3 Organisation gaol 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 Use of models of business innovation...................................................................................3
2.3 Sources of support and guidance for business innovation....................................................3
2.4 Process of product and services development.......................................................................3
2.5 Benefits, risk and implications associated with innovation..................................................4
TASK 3............................................................................................................................................4
3.1 Importance of financial viability for an organisation............................................................4
3.2 Consequences of poor financial management.......................................................................5
3.3 Different financial terminology.............................................................................................5
TASK 4............................................................................................................................................5
4.1 Evaluation of use of budget...................................................................................................5
4.2 Determination about how to manage budget........................................................................6
TASK 5............................................................................................................................................6
5.1 Principles of marketing.........................................................................................................6
5.2 Explain about a sale process.................................................................................................6
5.3 Features and use of market research.....................................................................................7
5.4 Value of brand to an organisation.........................................................................................7
5.5 Relationship between sales and marketing...........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is dynamic in nature which lead to get modify with a course of
time (Backer, 2015). Thus, it is important to follow all principles of business effectively so that
better and appropriate target get accomplish in an appropriate manner. This project study is
based on principles of business through which activities get done in an appropriate manner.
There are various business markets get determine whom need to understand by managers of a
company properly. With a course of time, business determine various growth and innovation
which need to understand by managers effectively so that appropriate financial management get
promoted. Principle of business will also lead to support sales and marketing of a company. This
project is based on Virgin Atlantic whom deals in Airlines.
TASK 1
1.1 Characteristics of different business market
Business markets are defined as all organisations that procure products or services that
are consequently used in manufacturing other goods and facilitating service for other consumers
(Bryman and Bell, 2015). They’re many different types of customer you can sell your products
too but the main business markets can be broken down into these 3 categories:
 Business to business market
 Industrial market
 Professional service provider
Business to business market take place when an association lead to deal with other
association so that an appropriate relationship could be maintain. Industrial market is a place
where rivalry is taking place among various industries which usually take place at wide level.
Professional service providers are those whom provide better and effective services to all their
users. Virgin Atlantic operate in such market where they deal with customers with an aim of
profit.
1.2 Nature of interaction between businesses within a market
An instance of nature of associations can have between each other could be a mixture
puncher picks he will open up a plant that makes and offers bread, he by then works together
with a multi million pound association, for instance, Virgin Atlantic who're looking for another
business to make sandwiches for their flight dinners. They would more then likely test his things
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then once they were content with nature of his bread they'd agree a concurrence with cake master
and the two associations would in a perfect world find deal gainful. This is an instance of how
incredible coordinated efforts between associations can provoke unprecedented results for the
two social occasions.
1.3 Organisation gaol may be shaped by the market in which it operates
Setting and framing of objectives is an important task for business through which
association become able to shaped all their market properly in which operations are taking place
(de Felice and Graf, 2015). Thus, goals which lead to shaped business of Virgin Atlantic are
stated as follow:
Competition -Prompts invention as companies try to beat each other by creating new
products and services to attract customers and increase sales.
Price: If there are several retailers, each retailer will lower the price in an attempt to win
customers. It is illegal for retailers to agree between themselves to fix a price. They must
compete for business.
Customer service: Retailers that provide customers with a helpful and friendly service
will win their loyalty.
1.4 Legal obligations of business
When starting a business there are different legal responsibilities you should take after.
Immediately Corporations Act 2001 has all necessities a business visionary must continue with
respect to structure of his/her business, a case would exhibiting your yearly return.
If you decide to agent staff you will moreover need to take after a couple of other real
requirements, for instance, Anti Discrimination Act 1991 to ensure your staff are managed
adequately (Guitián, 2015). Prosperity and Safety is also a segment while having a work drive,
it's fundamental to guarantee they fit in with Work Health and Safely Act 2011. Virgin Atlantic
need to interpret all these legislations properly into business so that they become able to operate
effectively and properly in order to gain effective competitive advantage as well as more
motivating employees.
TASK 2
2.1 Business Innovation
Innovation generally refers to changing processes or creating more effective processes,
products and ideas. For businesses, this could mean implementing new ideas, creating dynamic
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