Business
Exploring Business
Features of Businesses
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Features of Businesses
Features of Businesses
Structure and type:
- Sole traders are the simplest form of business, owned and run by one individual.
- Partnerships involve two or more people sharing the profits and liabilities of a business.
- Private limited companies (LTDs) are owned by shareholders who have limited liability.
- Public limited companies (PLCs) are larger entities where shares can be bought and sold on the stock market.
- Franchises operate under a franchisor’s established brand and business model.
Purpose and objectives:
- Profit maximisation is one of the main goals for businesses, especially in the private sector.
- Businesses may seek growth through increasing outputs, expanding to new markets, or acquiring other businesses.
- The objective of survival can be paramount for new, small, or struggling businesses.
- Many businesses put a high priority on providing quality customer service.
- Social objectives, such as promoting environmental sustainability, might be the aim of social enterprises.
Size and measure of success:
- Success can be measured through profitability, market share, growth rate, and other financial indicators.
- The size of a business can be determined by the number of employees, the breadth of its operations, or its total revenue.
- The market share indicates the business's competitiveness compared to others in the same industry.
Business environment:
- The micro environment includes internal and specific external factors that directly affect the business (e.g., employees, suppliers, customers, competitors).
- The macro environment comprises broader external factors that impact the whole industry or economy (e.g., political, economic, social, technological factors - also known as PEST factors).
- The SWOT analysis is a tool used by businesses to evaluate their Strengths, Weaknesses, Opportunities, and Threats.
Legal and ethical responsibilities:
- All businesses must comply with laws and regulations around trading, employment, health and safety, data protection, etc.
- Ethical responsibilities may include promoting fair trade, reducing carbon footprint, or engaging in corporate social responsibility (CSR) activities.