Business Management 1.1 – INTRODUCTION TO B&M
BUSINESS – An organization that uses resources to meet the needs of customers by providing
a product or service that they demand. They add value to the resources and make them
more desirable to the final purchaser.
Revenues (sells) (Cost of production) + Profit - Loss
CLASSIFICATION:
consumer goods (tangible) durable consumer goods (car) and non-durable consumer
goods (food)
consumer services (intangible)
capital goods (physical): aid in the production of other goods and services (machines)
FACTORS OF PRODUCTION (INPUTS)
Land – Resources of nature and site for building
Labour – Manual and skilled labour. Temporary/Permanent
Capital – Finance to set up a business and pay for its continuing operations and man-
made resources
Enterprise – Individuals that use the 3 inputs in order to produce goods and services. Risk-
taker, decision-maker and coordinators.
FUNCTIONS
HR Management: identify workface needs, recruits, selects and trains employees and
provide motivational systems to improve productivity. Manage employees so as the
business achieve his objectives
Finance and accounts: monitor the flow into and out, keep and analyze accounts and
provide financial information to the departments and senior management.
Marketing: market research to identify consumers’ wants. Decision of price, promotion,
sells and distribution. Ensure products are sold
Operations management: controlling resources for production, maintaining production
and quality levels and achieving high levels of productive efficiency. In service industries
the delivery of the services is okay, specific and understood by employees.
ECONOMIC SECTOR / BUSINESS ACTIVITY
Primary: extractive (raw materials)
Secondary: manufacture (construction) and process products. ADDS VALUE
Tertiary: services
Quaternary: IT (information technology)
STARTING A BUSINESS Sharing an idea
Necessity - Losing a job
Independence, flexibility and control
Business opportunity
Money
Challenge
Interest
Finding a gap
1
BUSINESS – An organization that uses resources to meet the needs of customers by providing
a product or service that they demand. They add value to the resources and make them
more desirable to the final purchaser.
Revenues (sells) (Cost of production) + Profit - Loss
CLASSIFICATION:
consumer goods (tangible) durable consumer goods (car) and non-durable consumer
goods (food)
consumer services (intangible)
capital goods (physical): aid in the production of other goods and services (machines)
FACTORS OF PRODUCTION (INPUTS)
Land – Resources of nature and site for building
Labour – Manual and skilled labour. Temporary/Permanent
Capital – Finance to set up a business and pay for its continuing operations and man-
made resources
Enterprise – Individuals that use the 3 inputs in order to produce goods and services. Risk-
taker, decision-maker and coordinators.
FUNCTIONS
HR Management: identify workface needs, recruits, selects and trains employees and
provide motivational systems to improve productivity. Manage employees so as the
business achieve his objectives
Finance and accounts: monitor the flow into and out, keep and analyze accounts and
provide financial information to the departments and senior management.
Marketing: market research to identify consumers’ wants. Decision of price, promotion,
sells and distribution. Ensure products are sold
Operations management: controlling resources for production, maintaining production
and quality levels and achieving high levels of productive efficiency. In service industries
the delivery of the services is okay, specific and understood by employees.
ECONOMIC SECTOR / BUSINESS ACTIVITY
Primary: extractive (raw materials)
Secondary: manufacture (construction) and process products. ADDS VALUE
Tertiary: services
Quaternary: IT (information technology)
STARTING A BUSINESS Sharing an idea
Necessity - Losing a job
Independence, flexibility and control
Business opportunity
Money
Challenge
Interest
Finding a gap
1
