mnb1501 Latest Summary.

MNB1501 STUDY UNIT 1: THE BUSINESS WORLD AND BUSINESS MANAGEMENT primary task of business management:  Determine how an enterprise can achieve the highest possible output with the least possible input, or  An examination of factors methods and principles that enable a business to efficiently and productively maximize profits Needs order  Self-Realisation  Esteem Needs  Social Needs  Security Needs  Physiological needs Overlap Physical and Psychological needs may overlap The need for self-esteem affects people who has already satisfied their lower order needs Limited Resources  Natural  Human  Capital  Entrepreneurship Management The economic principle A business’s effort to provide the greatest possible need satisfaction with limited available resources Main Economic Systems  Free-Market Economy o Within the free-market economy free competition and high social costs is true. o State interfere minimum o Main driving force is profit generation  Command Economy o Centrally Directed economic system – State owns and controls the communities resources or factors of production  Socialism o socialistic system the state does own and control many of the country’s principle industries such as transportation, health services and energy Non-Profit The economic principle applies to non-profit seeking business as it does to profit seeking business. pg. 1 STUDY UNIT 2: ENTREPRENEURSHIP Entrepreneur’s traits  Achievement motivation o Actions of intense, prolonged and repeated effort to accomplish something that is different o Work single minded towards goal  Internal locus of control o A persons need to be in charge of his/her destiny o can persuade and motivate other people  Innovation and creativity’ o Conceive and create new and unique products  Risk Taking o Taking risks in one way or another The Entrepreneurial Process The entrepreneurial process involves the following phases:  Abilities and skills: o Before entering the business world, any potential entrepreneur should first clarify whether he or she has the abilities and skills to do so.  Access to resources: o Access to Capital, time, energy and other resources to launch  Opportunity: o It is also important to assess the opportunity that the entrepreneur is pursuing.  Feasibility: o Feasibility Study: Once the opportunity has been identified and defined, the entrepreneur needs to find out if it can be turned into a successful venture. After the opportunity was identified,  Business plan: o Once the entrepreneur has some certainty about the feasibility of the venture, he or she needs to compile a business plan.  Manage the business: o Once feasibility has been established and resources have been acquired, the entrepreneur launches and manages the new business. Skills required for entrepreneurship  Strategy Skill o Consider a business as a whole and to understand how it fits within its marketplace  Planning Skill o Ability to consider what the future may offer  Marketing Skill