- •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’
Insurance
Asset insurance. A large proportion of capital in a business will be invested in physical assets, such as buildings and machinery. Asset insurance aims to protect firms, through financial compensation, in the event of loss or damage to these assets. Because types of insurance and premiums vary, it is often worthwhile to seek the advice of a specialist insurance broker. Organizations will usually insure their assets against the following risks:
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Fire: damage to assets resulting from fire, flood, lightning, storms, riots, and vandalism.
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Theft: loss of assets through theft. Many businesses pay an extra insurance premium to cover assets both when they are on the firm’s premises, and when they are authorized to be removed for use elsewhere (known as all risks cover). In such cases, it is essential to make sure that a sufficiently high insurance premium is paid to cover the full replacement value of the assets.
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Disruption of trading: this covers the firm against loss of earnings from sales, usually as a result of claims under fire insurance cover. Fire and disruption of trading insurance, taken together, will pay for damage to assets, and compensate the firm for any loss of earnings due to damaged assets.
Firms are not required by law to take out asset insurance. However, it would be very foolish for a firm not to insure against this kind of loss or damage, given the high proportion of business capital that assets consume, and the difficulty of replacing them without financial compensation. Although premiums can be very high, the consequences of fire or theft for business can be devastating.
Public, product, and employers’ liability. Firms are required by law to insure for public, product, and employers’ liability. The costs are justified, because a successful claim for damages by a member of the public or employee could bankrupt a firm.
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Public liability insurance: firms must insure themselves against causing injury to a member of the public as a result of their business activities – for example, if a highly polished floor in a shop caused a customer to slip over and hurt oneself. Such insurance also covers loss or damage to customers’ property. This is an important safeguard for the public and for firms, because without it, a claim from a member of the public for damages could easily bankrupt a business. The insurance is important for the public, because it guarantees them compensation if the firm is at fault.
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Product liability insurance: firms must also insure themselves against claims by members of the public for damages due to loss or injury caused by the use of their goods or services – for example, if an electrical product catches fire and causes damage, due to an internal fault. This insurance also covers a business for the legal costs which might be incurred in defending itself against claims made against it by a member of the public.
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Employers’ liability: this provides protection against claims for compensation from employees involved in accidents at work.
Other types of business insurance
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Bad debts – caused by customers not paying sales invoices
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Fidelity guarantee – to protect against theft and dishonesty by staff
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Legal insurance – to protect the organization from prosecutions for breaches of the law, such as restrictive trading practices, river pollution, or unfair dismissal
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Motor – third-party insurance is a minimum legal requirement to protect passengers and pedestrians from injuries sustained through motor vehicle accidents