- •Череповецкий государственный университет
- •Кафедра экономики
- •Современный бизнес
- •Contents
- •Введение
- •Unit 1. The effects of demand and supply on business
- •1.1. Markets
- •Test Questions
- •Case study ‘Understanding the Market’
- •1.2. The Operation of Markets
- •If social costs exceed social benefits, the decision to produce a good or service makes society worse off even if the producers make a profit.
- •If social costs are less than social benefits, the decision to produce a good or service will make society better off. Test Questions
- •Case study ‘Record Industry’
- •1.3. The Effects of Government Policy on Markets
- •Indirect taxes
- •Test Questions
- •Unit 2. The competitiveness of a firm
- •2.1. The Performance of an Industry
- •International Trade
- •International comparisons
- •2.2. Government Action to Improve Competitiveness
- •2.3. Government Action and International Trade
- •2.4. Business Competitive Strategies
- •Test questions
- •Case Study
- •Unit 3. Business Organisations
- •3.1. Types of Business Organization
- •3.2. Organizational Structures
- •3.3. Factors Influencing the Organisational Structure
- •Internal factors
- •Test Questions
- •Case Study ‘Business Organisation & Structure’
- •Unit 4. Administrative systems
- •4.1. The Purpose of Administrative System
- •4.2. Administration Functions in Business
- •4.3. Evaluating Administrative Systems
- •4.4. Information Technology in Administration
- •Test Questions
- •Case Study ‘Satellite Supplies’
- •Unit 5. Communications Systems
- •5.1. Why Do Businesses Need Communications System?
- •5.2. The Objectives of Communication
- •5.3. Verbal Communication
- •Internal communications
- •5.5. Evaluating Communication Systems in Business
- •Test Questions
- •Case Study ‘Can You Communicate?’
- •Unit 6. Information Processing
- •6.1. The Purposes of Information Processing
- •6.2. Types of Information Processing Systems
- •Information Technology: positive and negative effects
- •6.3. Evaluating Information Processing Systems
- •Test Questions
- •Case Study “Information Technologies in Business”
- •Unit 7. The principles and functions of marketing
- •7.1. What is Marketing?
- •7.2. The Objectives of Marketing
- •7.3. Implementing the Marketing Mix
- •Test Questions
- •Unit 8. Market Research
- •8.1. What is Market Research?
- •8.2. Sources of Marketing Information
- •Information requirements
- •Internal sources
- •8.3. Primary Research
- •8.4. Market Changes
- •Information on sales
- •Test Questions
- •Case Study ‘Sun Rush’
- •4M Brits shrug off gloom in sun rush
- •Unit 9. Marketing Communications
- •9.1. Targeting an Audience
- •9.2. How to Reach a Target Audience
- •9.3. Product Performance
- •9.4. Guidelines and Controls on Marketing Communications
- •Test Questions
- •Case Study ‘Marketing Communication’
- •Unit 10. Customer Service and Sales Methods
- •10.1. ‘The Customer Is Always Right’
- •10.2. Placing the Product – Distribution
- •Indirect distribution via intermediaries
- •10.3. Closing the Sale
- •Test Questions
- •Case Study ‘Company Handbook’
- •Unit 11. Production
- •11.1. What is Production?
- •11.2. Just in Time Production and Total Quality Management
- •11.3. Improving the Productivity of Labour
- •11.4. Health and Safety at Work
- •11.5. Reducing Pollution from Production
- •In the working environment
- •In the natural environment
- •Test Questions
- •Case Study ‘Production and Productivity Consulting’
- •11.6. The Costs of Production
- •Identifying business costs
- •Indirect costs
- •Insurance
- •Variable costs
- •Test Questions
- •Case study ‘Waterhouse Waffles’
- •Unit 12. Pricing decisions and strategies
- •12.1. The Pricing Decision
- •12.2. Cost-Based Pricing
- •12.3. Market-Based Pricing
- •12.4. Competition-Based Pricing
- •12.5. Problems with Demand- and Competition-Based Pricing
- •Test Questions
- •Case Study ‘What Price Promotion?’
- •Unit 13. Monitoring business performance
- •13.1. Accounting for Business Control
- •13.2. Budgetary Control
- •Variance analysis
- •13.3. Ratio analysis
- •Test Questions
- •Case Study ‘Business Performance’
- •Unit 14. Preparing a business plan
- •14.1. What Is a Business Plan?
- •14.2. The Purposes of a Business Plan
- •14.3. Legal and Insurance Implications
- •Insurance
- •14.4. Business Resources
- •14.5. Potential Support for a Business Plan
- •Some review questions
- •Unit 15. Producing a Business Plan
- •15.1. Business Objectives and Timescales
- •15.2. The Marketing Plan
- •15.3. The Production Plan
- •15.4. The Financial Plan
- •15.5. Conclusion
- •Some Review Questions
- •Case Study ‘Business Plan’
14.2. The Purposes of a Business Plan
Once an entrepreneur has a business idea and an agreed set of objectives, it is usual to set these out in a document known as a business plan. The plan will identify the objectives of the business, and detail how it intends to achieve them. It has been suggested that ‘a business that fails to plan is one that plans to fail’. There is no set format for a business plan. The structure and content will vary widely from business to business, depending on its size, the nature of the product, and the expertise of the writer. However, it is important for any business plan to consider the following five areas in some detail:
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Objectives
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How the business/product will be marketed
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How production will be organized, and the methods to be used
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Resource requirements (physical, human, and financial)
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Methods of finance
Producing a well-structured business plan is important for a number of reasons:
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It is a valuable exercise for the owner(s). It forces them to evaluate their business idea, market potential, and competition, assess their present financial situation, plan for the future, and set realistic output, sales, and profit targets.
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To identify resource requirements. For example, the plan will set out the business experience and skills of the owners, how many workers they will need, the skills they require, equipment and vehicle requirements, the size and location of suitable premises, and types and amounts of materials. Business start-up costs will also be identified, and the amount of external finance needed.
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To support an application for finance. A bank will insist on seeing a business plan before deciding to lend the owner(s) money. A plan will identify the key factors that will determine the success of the business, and how much of their own money the owners are willing to invest in the venture.
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To monitor business performance. The plan allows the business owner(s) to compare actual figures against projections. Forecasts of output, sales, cash flows, profit and loss accounts, and balance sheets can be compared against outturn, usually every month or every three months.
14.3. Legal and Insurance Implications
Business law
An entrepreneur setting up a new business must have an understanding of the basics of business law. This is because being in business brings a wide variety of legal and other responsibilities which, if ignored, can be very costly and disruptive to the running of the organization. If a business does break the law, it is not an acceptable defense to plead ignorance. The major categories of law which affect businesses are as follows:
Employment law. The relationship between employers and their employees is regulated by a number of laws. The main ones in the UK are:
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Industrial Relations Act 1971
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Race Relations Act 1976
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Employment Protection (Consolidation) Act 1978
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Employment Act 1980
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Equal Pay Acts 1970, 1983
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Sex Discrimination Act 1975, 1986
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Wages Act 1986
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Employment Act 1989
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Trade Union Reform and Employment Rights Act 1993
Together, these acts give employees the right to:
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A written statement of terms and conditions of employment
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Guaranteed payment of wages and an itemized pay slip
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Statutory sick pay
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To return to the same job after illness
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Redundancy payments
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Maternity leave for female employees and the right to return to the same job afterwards
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Non-discrimination on grounds of sex, race, marital status, religion, and Trade Union membership
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Protection against unfair dismissal
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Time off for public duties
Health and safety. A number of laws have been in existence for many years to protect employees and members of the public from health and safety hazards at work. These include:
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The Factories Act 1961
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The Offices, Shops and Railway Premises Act 1963
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The Fire Precautions Act 1971
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The Health and Safety at Work Act 1974
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Control of Substances Hazardous to Health Regulations (COSHH) 1988
In January 1993, six new Directives of the European Union came into force concerning health and safety in member countries. The so-called ‘six pack’ of legislative measures cover:
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Management of health and safety
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Provision and use of work equipment
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Manual handling operations
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Workplace conditions
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Issue of personal protective equipment
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Use of display screen equipment
Health and safety legislation in the UK requires employers ‘to ensure as far as is reasonably practicable, the health, safety and welfare at work of all staff’. Positive steps to prevent accidents and to promote health and safety must be taken by all organizations. Employers must:
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Develop and display a written policy on health and safety
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Maintain a safe working environment
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Provide safety equipment and, where appropriate, clothing free of charge
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Keep detailed records of accidents, and make regular assessments of health and safety risks in the workplace
All new businesses need to consider very carefully how they will ensure health and safety at work. The penalties for negligence on the part of employers can be very severe. New entrepreneurs should seek advice on health and safety before setting up in business.
Environmental protection. The Environmental Act 1990 and a growing body of European law on the environment regulate the behaviour of firms in the UK, and this is supported in Britain by the Inspectorate of Pollution. Taken together, these laws control many thousands of different industrial processes, which might, if uncontrolled, cause noise or chemical pollution in the air, land, or water. Local authorities are also required by government to monitor some 30,000 industrial processes for unacceptable levels of pollution.
Firms breaking anti-pollution laws may be subject to heavy fines. Therefore, it is essential for new businesses starting out to establish whether or not any of their production processes are likely to contravene the law, and, if so, what it would cost to put this right. For example, does the business result in hazardous waste by-products? How can waste be kept to a minimum, and how can it be disposed safely?
Consumer protection laws. A body of laws exists to protect consumers from misleading claims by producers and from the sale of goods of poor quality. These include:
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Food and Drugs Act 1955
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Weights and Measures Act 1963
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Trade Descriptions Act 1968
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Unsolicited goods Act 1971
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Consumer Credit Act 1974
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Consumer Safety Act 1978
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The Sale of Goods Act 1979
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Foods Act 1984
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Consumer Protection Act 1987
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Trademark Act 1994
Together these acts make it illegal to:
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Prepare or sell food in unhygienic conditions
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Use false or misleading weighing equipment
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Give short measure
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Give false or misleading descriptions of goods and services
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Send goods to customers who have not ordered them and then demand payment
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Not provide consumers with copies of credit agreements
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Not provide correct and full details of credit arrangements
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Sell goods which might be harmful to consumers
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Sell goods that are not of merchantable quality
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Sell defective goods that may cause damage or harm to consumers or their property
In addition a number of laws exist to control anti-competitive behaviour by firms, such as colluding to fix prices. These are:
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Monopolies and Trade Practices Act 1948
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Restrictive Trade Practices Act 1956
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Fair Trading Act 1973
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Restrictive Practices Act 1976
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Competition Act 1980
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Monopolies and Mergers Act 1965
Most of these laws will apply to large well-established firms who are able to dominate markets, known as monopolies and oligopolies. However, even small firms may be able to dominate the supply of a good or service to a local market and use this power to fix high prices and deter new competition.
Additional laws regulate opening times for shops and public houses, and forbid the sale of cigarettes, alcohol, and fireworks to children.