Introduction to business management
• every business decision has moral impactions
• these consequences can be significant for internal and external stakeholders and the natural environment.
What is a business?
traditional a business is an entity(organization) which tries to combine human, physical and financial resources into
processing goods and services to respond to and satisfy customer needs.
The production process
Inputs Process Outputs
Ex: raw materials, components, turning inputs into outputs the outputs or provision of final
machinery, equipment manufactured goods or into the goods and services.
provision of services
inputs: are the resources that a business in the production process; labor and raw material.
This process generates outputs.
the term; product can refer to both goods/services
• goods are physical products (cars)
• services are intangible products (haircut)
The role of business functions
• human resources: the human resources department is responsible for managing the personnel of the
organization.
• finance and accounts: the finance and accounts department is in chance of managing the organizations
money.
• marketing: the marketing department is responsible for identifying and satisfying the needs and wants of
costumers.
• operations: is responsible for managing the resources which are dedicated to the production and delivery
of product and services
Do changes in economic structures affect firms?
Changes in economic structure: the importance of each sector in a countries economic structure changes over
time.
Industrialization: describes the growing importance of the secondary sector manufacturing industries in
developing countries.
In developed economies the situation is reversed, there is a general decline in the importance of secondary sector
activity and an increase in tertiary sector. This is known as de-industrialization
Different Sectors:
❖ primary: resources based and extraction activities: fishing, farming
• every business decision has moral impactions
• these consequences can be significant for internal and external stakeholders and the natural environment.
What is a business?
traditional a business is an entity(organization) which tries to combine human, physical and financial resources into
processing goods and services to respond to and satisfy customer needs.
The production process
Inputs Process Outputs
Ex: raw materials, components, turning inputs into outputs the outputs or provision of final
machinery, equipment manufactured goods or into the goods and services.
provision of services
inputs: are the resources that a business in the production process; labor and raw material.
This process generates outputs.
the term; product can refer to both goods/services
• goods are physical products (cars)
• services are intangible products (haircut)
The role of business functions
• human resources: the human resources department is responsible for managing the personnel of the
organization.
• finance and accounts: the finance and accounts department is in chance of managing the organizations
money.
• marketing: the marketing department is responsible for identifying and satisfying the needs and wants of
costumers.
• operations: is responsible for managing the resources which are dedicated to the production and delivery
of product and services
Do changes in economic structures affect firms?
Changes in economic structure: the importance of each sector in a countries economic structure changes over
time.
Industrialization: describes the growing importance of the secondary sector manufacturing industries in
developing countries.
In developed economies the situation is reversed, there is a general decline in the importance of secondary sector
activity and an increase in tertiary sector. This is known as de-industrialization
Different Sectors:
❖ primary: resources based and extraction activities: fishing, farming
