Principles of Business: Financial Viability and Marketing Report

This report provides a comprehensive analysis of the principles of business, using Virgin Atlantic as a case study. It begins with an introduction to the dynamic nature of the business environment and the importance of adhering to business principles. The report then delves into various aspects, including the characteristics of different business markets, the nature of interactions between businesses, and how organizational goals are shaped by the market. It explores business innovation, models of innovation, sources of support, and the product and service development process. Financial viability is discussed, including its importance, the consequences of poor financial management, and relevant financial terminology. The report also evaluates the use of budgets and discusses marketing principles, sales processes, market research, brand value, and the relationship between sales and marketing. The conclusion summarizes the key findings and the importance of these principles in the success of a business, like Virgin Atlantic, operating in the airline industry.

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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products or improving your existing services. Innovation can be a catalyst for the growth and
success of your business, and help you to adapt and grow in the marketplace.
Innovation can mean changing your business model and adapting to changes in your
environment to deliver better products or services (Ronen, 2014). Successful innovation should
be an in-built part of your business strategy, where you create a culture of innovation and lead
the way in innovative thinking and creative problem solving.
Virgin Atlantic need to determine various innovation in an association so that better and
effective working get promoted as well as management become able to accomplish all goals and
objectives.
2.2 Use of models of business innovation
There are different kinds of business models with each company having a model that is
dependent on the products and services that it produces (Ruggie and Sherman, 2015). While
designing a new model is not easy, it will help your business grow, improve product
development, meet customer needs and increase revenues. Its uses are as follows :-
 Business model innovations enable companies to find out how customers value their
goods and ways that clients can have new experiences. This model enables management
to determine the reason behind decrease and increase of sales.
 Companies use this model to protect their margins against competitors by finding out
their competition and coming up with new strategies for the business.
2.3 Sources of support and guidance for business innovation
Government are persistently based on upgrading business in UK and offer help to those
associations who're in require. Here you can move support to get improve and build up your
business through strategies for business headway. Consistently neighbourhood specialists in like
manner offer associations help to proceed. Barnsley board of trustees offer a business start up
mastermind which empowers neighbourhood people to set up their own particular imaginative
associations.
2.4 Process of product and services development
Product and service development need to follow suitable steps so that management
become able to enhance their procedure of innovation in market in an appropriate and effective
manner. Virgin Atlantic need to apply this model into business properly so that suitable working
get promoted:
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1. Idea generation– Brainstorming and coming up with innovative new ideas. See
generating ideas for new product and development.
2. Idea evaluation- Filtering out any ideas not worth taking forward. See screening of new
product and service idea.
3. Feasibility study- Considering specifications such as product design, market potential.
See researching new product and services ideas.
4. Strategic analysis- Ensuring your ideas fit into your business' strategic plans and
determining the demand, the costs and the profit margin.
5. Product development and testing- Creating a prototype product or pilot service. See
concept development and testing.
6. Market testing- Modifying the product or service according to customer, manufacturer
and support organisations' feedback.
7. Commercialisation– Determining the pricing for your product or service and finalising
marketing plans. See pricing proposed service or product.
8. Product launch– A detailed launch plan can help ensure smooth introduction to market.
2.5 Benefits, risk and implications associated with innovation
Innovation is not a easy thing for business ad thus, there are various aspects linked with it
(Ruggie, 2014). Thus, Virgin Group need to evaluate all benefits, risk and implications properly
so that better and effective operations get promoted in order to maximise productivity and
revenue.
There are many focal points to improvement yet there are also numerous risks.
Preferences can consolidate growing your advantages, redoing your organizations, finding new
business openings or despite giving you good position over your opponents. Perils can be your
new thing isn't recognized by feature, your association winds up detectably dependant on new
thing or it may take significant hypothesis with little reward if thing fails to be a win.
Ramifications of improvements can join cost of making new contemplations or things, as
a less than dependable rule little associations may even need to look at reaching out to enhance
and moreover resource's have an immense impact, if you simply have a little gathering of
employees who're all to an incredible degree possessed then it makes it in every practical sense
hard to progress reasonably (Vom Brocke and et. al., 2014).
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TASK 3
3.1 Importance of financial viability for an organisation
Financial viability is extremely important in any business because making financially
viable decisions can determine whether your business is successful or not (Wettstein, 2015).
Making sure something is financially viable simply means to ensure it’s profitable and you can
afford. An example in our organisation would be we purchased an I Phone for the news team to
use as a recoding device as well as a phone. It most likely cost around £300 but has helped us
gather hundreds of top quality interviews over the past 12 months, which will have hopefully
increased the amount of listeners we have and because of the increase in listeners more
companies will have decided to advertise with us so our revenue will have increased. That means
it was financially viable to invest in the I Phone even though it cost the company at the
beginning.
3.2 Consequences of poor financial management
When settling on a fiscal decision it's key to really consider what results might be if your
decision isn't financially sensible (Tasioulas, 2015). If an association consumes money on things
that are exorbitant however won't for the most part improve their business then they will soon
end up in heaps of commitment, they could need to impact cut backs or make to people
monotonous to get by as a business. That is the reason it's fundamental to exactly consider every
decision you make in business.
3.3 Different financial terminology
Certain financial terms often mean different things to different organizations depending
on their own particular accounting policies.
Assets: Anything owned by the company having a monetary value; eg, 'fixed' assets like
buildings, plant and machinery, vehicles and potentially including intangibles like trade marks
and brand names, and 'current' assets, such as stock, debtors and cash.
Balance sheet: It is one of the three essential measurement reports for the performance and
health of a company along with the Profit and Loss Account and the Cash flow Statement. The
Balance Sheet is a 'snapshot' in time of who owns what in the company, and what assets and
debts represent the value of the company.
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TASK 4
4.1 Evaluation of use of budget
A spending urges you to be dealt with concerning managing your records, the extent that
a business it causes you work out what money you can remain to spend on costs while so far
making a sensible advantage (De Felice, 2015). An instance of this in our association might be
we have a £100,000 spending anticipate a year and in that year we have to endeavour stay inside
that budgetary arrangement. Association may need to consume £20,000 on new radio rigging,
£40,000 on another person from staff, £40,000 thousand on oil costs across finished assembling
and a further £10,000 on building rent. In case that was case and they over spent by £10,000 it
would suggest that money would eat into associations benefits in this way its basic to endeavour
cling to your spending when possible.
4.2 Determination about how to manage budget
When managing a budget it’s important to leave some room for compromise, that way
you can allow for unexpected costs (Hayes, Wallage and Gortemaker, 2014). For example if you
work out that the next 12 months will cost your company £100,000 in expenses, it’s good to then
budget for a £120,000 so if some expensive equipment then brakes and it costs you £10,000
extra to repair it, you’ll not go over your budget. A budget can also change through out the year
depending on profits. The best way to manage a budget is to constantly keep an eye on what
you’re spending an review your budget regularly.
TASK 5
5.1 Principles of marketing
Exhibiting incorporates an extent of techniques that are used to find what customers
require, these are known as 4ps. They stay for Price Product Production and Place. These are 4
essential principals of advancing and one you find it will empower you to publicize your thing
successfully.
5.2 Explain about a sale process
Each company will have a slightly different way in how they sell their product.
Professional selling involves a series of seven distinct steps namely:-
 Prospecting is finding and qualifying potential customers
 Preparation involves preparing for the initial contact with a potential customer.
 Approach is the first face-to-face interaction you will have with the potential customer.
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 Presentation is actively listening to the needs and wants of the potential customer and
demonstrating how your product can meet those needs and wants.
 Handling objections is an important part of the process. Objections can be useful
because they tell the salesperson what to focus upon in addressing a prospect's concerns.
 Closing involves identifying closing signals from the prospect that indicate it's decision
time
 Follow-up is building a long-term relationship with your customer for purposes of repeat
sales.
5.3 Features and use of market research
Factual looking over is basic when setting up a business or preparing to offer a thing. If
you don't know feature you're going into it's probable you won't feel that its easy to fight (Weiss,
2014). Way to deal with coordinate measurable looking over is to start by finding who are your
principal matches in publicize, some major competitors of business are British Airlines etc.. It's
basic to consider what your opponents do well at and moreover thinking about what they could
improve. If a business can do well at same things as its adversaries however at same time offer
something new and unmistakable by then it's most likely going to succeed.
5.4 Value of brand to an organisation
It is known that branding is the key to any company, whether they sell coffee or industrial
parts or clothing (Kompalla, Kopia and Tigu, 2016)). The value of a brand can be assessed as :-
 Branding provides a competitive advantage - Whether its a non-profit or a for-profit,
the organization needs to compete for resources, funding and talent, and audience
attention.
 Brands provide a stable asset - Products might fail, companies are bought and sold,
technologies change on a daily basis, but strong brands carry on through all these
changes.
 Brands provide economic value - The value of organizations is divided into two areas:
intangible and tangible assets—brands being intangible assets
 Brands set expectations - Often there are legal repercussions that bind people to fulfil
these promises, but more often than not promises and vows are maintained based on the
individual’s own moral and ethical code.
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5.5 Relationship between sales and marketing
Displaying makes potential clients by then it's movement of a business gathering to
execute deal. For example on Trax FM we may run an advancing exertion offering new
customers a discount in communicate arrangement, that in this manner will attract people to call
our business gathering and enquire about game plan which preferably bargains gathering will
then have the ability to change into wage
CONCLUSION
It get concluded from the project that principles of business are helpful in order to make
things correct and appropriate. There are various markets of business get evaluated by
management on the basis of which suitable decisions lead to be carried down. Moreover, it is
essential to include suitable growth for an association by determine appropriate innovation for
concern project. It is important to manage financial resources of a company in order to make
innovation more appropriate and creative. Although, before any innovation, budget need to
prepare by business properly so that sales and marketing get enhance.
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REFERENCES
Books and Journals
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.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Compact, U. G., 2014. Overview of the UN Global Compact. Recuperado de https://www.
unglobalcompact. org/ParticipantsAndStakeholders/business _associations. Html.
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.
De Felice, D., 2015. Banks and human rights due diligence: A critical analysis of the Thun
Group's discussion paper on the UN Guiding Principles on Business and Human Rights.
The International Journal of Human Rights. 19(3). pp.319-340.
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.
Hayes, R., Wallage, P. and Gortemaker, H., 2014. Principles of auditing: an introduction to
international standards on auditing. Pearson Higher Ed.
Kompalla, A., Kopia, J. and Tigu, P. G., 2016. An application of agile principles on business
strategies within IT-based industries and automotive enterprises. Zeitschrift für
interdisziplinäre ökonomische Forschung. (1). pp.112-122.
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. and Sherman III, J. F., 2015. Adding Human Rights Punch to the New Lex
Mercatoria: The Impact of the UN Guiding Principles on Business and Human Rights
on Commercial Legal Practice.
Ruggie, J. G., 2014. Global governance and “new governance theory”: Lessons from business
and human rights. Global Governance. 20(1). pp.5-17.
Tasioulas, J., 2015. Human Rights, No Dogmas: The UN Guiding Principles on Business and
Human Rights.
Vom Brocke, J. and et. al., 2014. Ten principles of good business process management. Business
process management journal. 20(4). pp.530-548.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Wettstein, F., 2015. Normativity, ethics, and the UN guiding principles on business and human
rights: A critical assessment. Journal of Human Rights. 14(2). pp.162-182.
Online
7 Essential Principles of Small Business Success. 2018. [Online]. Available through:
<https://smallbiztrends.com/2011/05/7-principles-small-business-success.html>.
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