Business Market, Business Innovation and Business Budgeting : Report

Added on - 21 Jul 2020

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Principles of Business
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Characteristics of different business market.........................................................................11.2 Nature of interaction between businesses within a market...................................................11.3 Shaping of organisational goals by the market in which it operates.....................................21.4 Legal obligations of a business.............................................................................................2TASK 2............................................................................................................................................22.1 Definition of business innovation.........................................................................................22.2 Use of models of business Innovation..................................................................................32.3 Sources of support and guidance for business innovation....................................................32.4 Process of product or service development...........................................................................42.5 benefits, risks and implications associated with innovation.................................................4TASK 3............................................................................................................................................53.1 Importance of financial viability for an organisation............................................................53.2 Consequences of poor financial management.......................................................................53.3 Different financial terminology.............................................................................................5TASK 4............................................................................................................................................64.1 Uses of a Budget...................................................................................................................64.2 Management of a Budget......................................................................................................6TASK 5............................................................................................................................................65.1 Principles of marketing.........................................................................................................65.2 Sales process.........................................................................................................................75.3 Features and uses of market research....................................................................................75.4 Value of a brand....................................................................................................................85.5 Relationship between sales and Marketing...........................................................................8CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONPrinciples of business is an important concept that discusses about the rules that areapplied in a business organisation so as to develop them and improve their working as well sothat they achieve success in the market (Addo, 2014). It is very important for every company toapply some principles into them so that they can behave in an ethical manner inside anorganisation . This report will discuss about the understanding of business market, businessinnovation and growth, financial management and business budgeting as well.TASK 11.1 Characteristics of different business marketBusiness marketsare defined as all organisations that procure productsor services thatare consequently used in manufacturing othergoodsandfacilitating service for other consumers.They’re many different types of customer you can sell your products too but the main businessmarkets can be broken down into these 5 categories:Business to business marketIndustrial marketprofessional services and Financial servicesGovernmentHigh StreetThe business to business market is when one business simply sells it’s products to anothermeanwhile the industrial market consists of companies transacting business in hard goods.Professional services include the delivery of business needs such as marketing, informationtechnology, management consulting and payroll whereas financial services include banking,insurance, commercial credit (Backer, 2015).1.2 Nature of interaction between businesses within a marketBusinesses interact with each other in a variety of ways.Supply chain management (SCM) is the control of the supply chain as a process from supplier tomanufacturer to wholesaler to retailer to consumer. There are essentially three goals of SCM: toreduce inventory, to increase the speed of transactions with real-time data exchange, and toincrease revenue by satisfying customer demands more efficiently.
Logistics is the management of the flow of goods between the point of origin and the point ofconsumption, and usually involves the integration of information flow, material handling,production, packaging, inventory, transportation and warehousing (Deva, 2012).Advertising involves making the public aware of products and services through paidannouncements in newspapers and magazines, via radio, TV, billboards and the internet.1.3 Shaping of organisational goals by the market in which it operatesSetting goals is how you grow your company and achieve success. The process of creating goalsis influenced by many internal and external factors. Some of the factors are :-Competition-prompts invention as companies try to beat each other by creating newproducts and services to attract customers and increase sales.Price: If there are several retailers, each retailer will lower the price in an attempt to wincustomers. It is illegal for retailers to agree between themselves to fix a price. They mustcompeteforbusiness.Product range: In order to attract and satisfy customers, companies need to produceproducts that are superior to their competitors.Customer service: Retailers that provide customers with a helpful and friendly servicewill win their loyalty.1.4 Legal obligations of a businessWhen starting a business there are a number of legal obligations you must follow. Firstlythe Corporations Act 2001 has all the requirements a business owner must abide by in terms ofthe structure of his/her business, an example would submitting your annual return.If you decide to employee staff you will also have to follow several other legalrequirements such as the Anti Discrimination Act 1991 to ensure your staff are treated fairly.Health and Safety is also an element when having a work force, it’s important to make sure theycomply with the Work Health and Safely Act 2011. Finally if you’re leasing a property it’simportant to stick to the Retail Shop Leases Act 1994 (Gong, and Janssen, 2012).TASK 22.1 Definition of business innovationInnovation generally refers to changing processes or creating more effective processes,products and ideas. For businesses, this could mean implementing new ideas, creating dynamicproducts or improving your existing services. Innovation can be a catalyst for the growth and
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