B Canel

Why do businesses need finance? Businesses need finance , or money, to pay for their overhead costs as well as their day to day and variable expenses. Here are three situations when businesses need finance the most: Starting a business : Huge amounts of finance is needed to start a business which requires buying fixed assets, paying rent and other overheads as well as producing or buying the first products to sell. The finance required to start up a business is called start-up capital . Expanding a business : When expanding, a lot of capital is needed in order to buy more fixed assets or fund a takeover. Internal growth by developing new products also requires a notable amount of finance for R&D. A business in difficulties : For example, for loss making businesses money is needed to buy more efficient machinery, or money is needed to cover negative cash flow. However, it is usually difficult for these firms to get loans.  All all cases, businesses need finance for either capita...

What is organisational structure? Organisational structure refers to the levels of management and division of responsibilities within a business, which could be presented in an organisational chart . For simpler businesses in which the owner employs only himself , there is no need for an organisational structure. However, if the business expands and employs other people, an organisational structure is needed. When employing people, everybody needs a job description . These are its main advantages : People who apply can see what they are expected to do. People who are already employed will know exactly what to do. Here is an example of a Job Description taken from the book: When there are more than one person in a small business and they all do different things, it means that they are specialising in different jobs. Delegation Delegation refers to giving a subordinate the responsibility and authority to do a given task. However, the final responsibility still lies with the person who de...

What do managers do? All organizations have managers . They can come by the name of director, headmaster, etc... but they all perform similar tasks . These tasks are: Planning:  Planning for the future involves setting goals for a business. These goals give the business a sense of direction and purpose . Now the whole business will have something to work towards. Managers also need to plan for resources which will be needed. These are only two strategies managers use to keep the business running. Organising:  A manager cannot do everything by himself. Therefore, jobs must be delegated to employees. Employees need sufficient resources to complete their job, so managers need to organise people and resources effectively. Co-ordinating: Managers need to bring people together in a business for it to succeed. This is called co-ordination . If different functional departments do not co-ordinate, they could be doing completely different things which does not follow any common plan. Ma...

What is effective communication and why is it necessary? Communication is when a message transfered from one person to another and is  understood by the latter. We communicate everyday (by talking, by chatting, by texting, etc.) but we need to learn how to communicate effectively . Effective communication means that: "The information or message being sent is received , understood and acted upon in the way intended ." In business, ineffective communication or communication failure could result in serious problems.  Why do people within business need to communicate with each other? In business, if we do not communicate, we would be working as individuals with no co-ordination with anybody else in the business. The management, whose tasks are guiding, instructing and commanding subordinates could not be done because they cannot communicate with them. Here are some common messages found in the workplace: No Smoking (sign) You are fired because you are always late (letter) Do not ...

Motivation People work for a number of reasons. Most people work because they need to earn money to survive, while others work voluntarily for other reasons. Motivation is the reason why people work, and it drives them to work better. Therefore, managers try to find out what motivate workers and use them to encourage workers to work more efficiency . This results in higher  productivity , increased output , and ultimately higher profits . Nowadays, machinery is more common in businesses which results in increased productivity as well. However, the amount that a well motivated workforce can produce must still be recognised, since employees are a firms greatest assets! Motivation theories People work very hard when they are working for themselves. When they work for other people, less so. Managers have been looking into what makes employees contribute their fullest to the company and these studies have resulted four main theories of motivation. F.W.Taylor Theory: Money is the main mo...