Business Principles Report: Factors and Strategies

This report provides a comprehensive overview of key business principles and their practical applications. It begins by examining the business environment and the importance of innovation in achieving competitive advantage. The report then delves into various aspects of business operations, including market analysis, legal obligations, and the development of effective corporate goals. It explores business innovation models, government support for businesses, and the process of creating and launching new products or services. The report also discusses the significance of financial viability, including financial management, budgeting, and key financial metrics. Furthermore, it examines marketing strategies, including the 4Ps of marketing, the selling process, and the importance of market research and branding. The report concludes by highlighting the role of marketing in generating sales leads and the execution of deals by sales teams. The report draws on various academic sources to support its arguments, and provides practical examples to illustrate the concepts discussed.

Principles of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................1
1.3................................................................................................................................................2
1.4................................................................................................................................................2
TASK 2............................................................................................................................................2
2.1................................................................................................................................................2
2.2................................................................................................................................................3
2.3................................................................................................................................................3
2.4................................................................................................................................................3
2.5................................................................................................................................................3
TASK 3............................................................................................................................................4
3.1................................................................................................................................................4
3.2................................................................................................................................................4
3.3................................................................................................................................................4
TASK 4............................................................................................................................................5
4.1................................................................................................................................................5
4.2................................................................................................................................................5
TASK 5............................................................................................................................................6
5.1................................................................................................................................................6
5.2................................................................................................................................................6
5.3................................................................................................................................................6
5.4................................................................................................................................................7
5.5................................................................................................................................................7
CONCLUSION................................................................................................................................7

INTRODUCTION
There are large number of factors which are present in business environment which
affects the business operations. It is the obligation upon management is to consider such factors
regarding preparation of effective strategies which helps in attainment of sustainability in their
operations. Innovation is important technique which helps to bring necessary changes in
organisational structure (Addo, 2014). Through this large number of benefits are gathered by the
organisation. It helps in attainment of the competitive advantage, improved market share, higher
profit abilities etc. Financial viability is important for every kind of organisation. It provides
strength to the different departments of organisation regarding performance of different
functions.
TASK 1
1.1
The world of business is an extremely large place and there are plenty of ways to run a
success company and make a profit if you understand the market. They’re many different types
of customer you can sell your products too but the main business markets can be broken down
into these 5 categories:
 Business to business market: The business to business market is when one business
simply sells it’s products to another.
 Industrial market: Industrial market consists of companies transacting business in hard
goods such as machinery, materials, vehicles and supplies.
 Professional and financial services: Professional services include 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 (Backer, 2015).
1.2
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. 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. This is an example of how good interactions between
businesses can lead to great results for both parties.
1.3
Setting goals is how you grow your company and achieve success. The process of
creating goals is influenced by many internal and external factors. To understand the basics of
developing effective corporate goals, you need to be familiar with the key factors that shape
effective goal setting. This will help you address the limitations and challenges that can occur
during goal development (De Felice and Graf, 2015).
1.4
When starting a business there are a number of legal obligations you must follow.
 Corporations Act 2001: Requirements a business owner must abide by in terms of the
structure of his/her business, an example would submitting your annual return.
 Anti Discrimination Act 1991: To ensure your staff are treated fairly
 Work Health and Safely Act 2011: Health and Safety is also an element when having a
work force, it’s important to make sure they comply with the requirements of this law
 Retail Shop Leases Act 1994: if you’re leasing a property it’s important to stick with the
requirements of this law.
TASK 2
2.1
Business innovation is the creation of substantial new value for customers and the
company by creatively changing one or more dimensions of the business system. 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. It
helps to improve the working lives of your staff, improve your profits or improve your products
it’s something that will have a positive impact on your company.

2.2
Models of business innovation can help you identify opportunities to grow your business,
generate new creative ideas, find and successfully enter into new emerging markets and create
new systems and rules that will take your business forward.
 Identify growth opportunities: Tapping into an entirely new customer opportunity with a
completely new business model that changes the competitive landscape.
 Successfully enter emerging markets: re-conceiving business models that recognize the
unique unmet needs of consumers in these markets, profitably and efficiently (Guitián,
2015).
2.3
The government are constantly focused on improving business in the UK and offer help
to those businesses who’re in need. Here you can get support to get improve and grow your
business through ways of business innovation. Often local authorities also offer businesses help
to get going. Barnsley council offer a business start up plan which helps local people set up their
own innovative businesses.
 R&D tax credits: This is the single biggest government scheme supporting business
investment in R&D and innovation. Claims totalled £1.2 billion in the financial year 2011
to 2012.
2.4
In order to create a product or service you firstly must come up with an idea. The next
step is to consider is their a market for your product, do people want to buy it? Then you must
create strategic plan to decide how you’re going to sell your product. The next step is to create a
prototype of your product and test it with your target audience. Once you’re happy that your
products works and it’s what your target customer wants on the market then you must promote
and finally launch your product to the market.
2.5
Benefits

There are many benefits to innovation but there are also many risks. The benefits can include
increasing your profits, helping to personalise your services, finding new business opportunities
or even giving you an advantage over your competitors.
Risks
The risks can be your new product is not accepted by the market, your company becomes
dependant on the new product or it may take heavy investment with little reward if the product
fails to be a success.
Implications
The implications of innovations can include the expense cost of creating new ideas or products,
sometimes small companies may even have to look at expanding to innovate and also resource’s
play a huge part in success (Ramadani and et. al., 2015).
TASK 3
3.1
Financial viability is extremely important in any business because making financially viable
decisions can determine whether your business is successful or not. Making sure something is
financially viable simply means to ensure it’s profitable and you can afford it. An example in our
organisation would be we purchased an IPhone for the news team to use as a recoding device as
well as a phone. That means it was financially viable to invest in the IPhone even though it cost
the company at the beginning.
3.2
Poor financial management is patchy financial planning, chaotic bookkeeping, over investment
(buying too much too early), and lacking any reserves. The latter could see your business
flounder as soon as you need to make an unexpected outlay or you have a quiet period. The
consequences of poor financial management for your business are clear: you may struggle to pay
your bills, get into debt, and eventually be forced to shut your business down.
3.3
Turnover – The amount of money a company has taken over a period of time.

Gross Profit – The amount of money a company has made after allowing for the cost of it’s
product and the cost of selling the product.
Net Profit – Net profit is the actual profit a company has made after working expenses.
Debt – Debt is an amount of money that you owe to someone or a company.
Credit – Is the ability to allow a customer to obtain goods or services without paying for them
first but with the knowledge they will pay for them at a later date.
TASK 4
4.1
Track expenses
It is easy to forget where you spent that extra money last month or realize just how much you are
spending on certain expenses. Budgeting allows you to see these facts in black and white.
Set limits
Budgeting allows you to set limits on your spending. A budget helps you determine how much
money you should have going out each month based on how much income you have coming in
each month (Ronen, 2014).
Reach goals
Without a budget, you have no way of really knowing where each penny is going each month.
Set a time line in order to buy the item and determine a realistic amount to set aside each month
in order to afford it.
4.2
In order to manage budgets effectively and efficiently, it is necessary to:
 Monitor, control, and record all the finances (income and expenditure),
 Know how to minimise costs in the areas that you are responsible for,
 Be able to investigate or identify problematic areas and rectify them, and
 Efficiently manage and authorise expenditures.

TASK 5
5.1
Marketing involves a range of processes that are used to find out what customers want,
these are known as the 4ps. They stand for Price Product Production and Place. These are the 4
main principals of marketing and one you find out it will help you market your product
successfully. Thus Marketing can be categorized as a branch of business as well as a social
science. We buy goods (thus becoming the buyer/consumer) from a vendor (or producer/seller),
creating a transaction. In the past, marketing involved travelling salesmen, while in modern
times, marketing is more likely to involve television, the internet, and other forms of media
bombardment (Ruggie, 2014).
5.2
Each company will have a slightly different way in how they sell their product, for
example in a retail shop such as All Saints the staff may approach a customer when they come
into the shop and politely offer assistance, then will then allow you to shop and only help you
when needed but in other more high end retail stores staff may be told to personally assist each
costumer individually in order to try make a sale.
Selling is a process with distinct steps that should be followed in order to achieve
success. The steps include prospecting, preparation, approach, presentation, handling objections,
closing and follow-up.
5.3
Market research is vital when setting up a business or preparing to sell a product. If you
don’t know the market you’re entering into it’s very likely you won’t find it easy to compete.
The way to conduct market research is to start by finding out who are your main competitors in
the market, so as an example if you were setting up a mobile phone company you may want to
look at O2 or EE. It’s important to think about what your competitors do well at as well as
thinking about what they could improve on. If a business can do well at the same things as its
competitors but at the same time offer something new and different then it’s likely to succeed.

5.4
The brand of an organisation is it’s identity and it means everything. MacDonald’s,
Apple, Nike would never have been successful with out those famous iconic brands and logos.
Your brand is what makes you as a company, because once a customer likes your brand they will
continue to come back to buy more from you.
 the visual identity of the brand (logo, website and colours, are just some examples).
 advertising and communications
 product and packaging design
 in-store experience
 pricing
 sponsoring and partnerships
5.5
Marketing helps generate sales leads then it’s the job of a sales team to execute the deal.
For example on Tax FM we might run a marketing campaign offering new customers a discount
in air time, that in turn will attract people to call our sales team and enquire about the deal which
hopefully the sales team will then be able to turn into revenue (Schmithüsen and et. al., 2015).
Marketing encourages leads and builds relationships with potential customers through a
variety of strategies. ... Marketing develops a relationship between a large customer base and the
products and services the business sells. After Marketing has reeled-in the leads, it is up to the
Sales department to close them.
CONCLUSION
It has been concluded from the above report that, innovation helps the organisation to
accomplish their targets effectively. This will improves the profitability of organisation.

REFERENCES
Books and journals
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Backer, L.C., 2015. Moving forward the UN guiding principles for business and human rights:
Between enterprise social norm, state domestic legal orders, and the treaty law that
might bind them all. Fordham Int'l LJ. 38. p.457.
De Felice, D. and Graf, A., 2015. The Potential of National Action Plans to Implement Human
Rights Norms: An Early Assessment with Respect to the UN Guiding Principles on
Business and Human Rights. Journal of Human Rights Practice. 7(1). pp.40-71.
Guitián, G., 2015. Service as a bridge between ethical principles and business practice: A
Catholic Social Teaching perspective. Journal of Business Ethics. 128(1). pp.59-72.
Ramadani, V. and et. al., 2015. The context of Islamic entrepreneurship and business: Concept,
principles and perspectives. International Journal of Business and Globalisation. 15(3).
pp.244-261.
Ronen, J., 2014. On the invariance of accounting principles to business models: a discussion of
the Singleton-Green and Page articles.Journal of Management & Governance. 18(3).
pp.707-716.
Ruggie, J.G., 2014. Global governance and “new governance theory”: Lessons from business
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Schmithüsen, F. and et. al., 2015. Entrepreneurship and management in forestry and wood
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Routledge.
Tasioulas, J., 2015. Human Rights, No Dogmas: The UN Guiding Principles on Business and
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Vom Brocke, J. and et. al., 2014. Ten principles of good business process management.
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Online
Innovation. 2018. [Online] Available through<https://www.businessnewsdaily.com/5167-
innovation.html>./