BUSINESS IB NOTES
Unit 1: Business organisation and environment
❏ 1.1 Introduction to business management
❏ 1.2 Types of organisations
❏ 1.3 Organisational objectives
❏ 1.4 Stakeholders
❏ 1.5 External environment
❏ 1.6 Growth and evolution
Unit 2: Human resource management
❏ 2.1 Functions and evolution of human resource management
❏ 2.2 Organisational structure
❏ 2.3 Leadership and management
❏ 2.4 Motivation
Unit 3: Finance and accounts
❏ 3.1 Sources of finance
❏ 3.2 Costs and revenues
❏ 3.3 Break-even analysis
❏ 3.4 Final accounts (some HL only)
❏ 3.5 Profitability and liquidity ratio analysis
❏ 3.7 Cash flow
❏ 3.8 Investment appraisal (some HL only)
Unit 4: Marketing
❏ 4.1 The role of marketing
❏ 4.2 Marketing planning (including introduction to the four Ps)
❏ 4.4 Market research
❏ 4.5 The four Ps (product, price, promotion, place)
❏ 4.8 E-commerce
Unit 5: Operations management
❏ 5.1 The role of operations management
❏ 5.2 Production methods
❏ 5.4 Location
, 1
GENERAL:
Change: The adaptation of the organization to accommodate the external business environment
- Firms usually implement changes to survive, expand or remain competitive (due to
arising external influences [changes in the economy or industry])
Culture: reference to the aspects within a contextual environment which influences firms in many
ways. It can be classified into internal and external culture
- The difference in cultures is one of many factors that lead to product diversification
- Internal culture: the way the firm operates, influenced by their aims and objectives
- External culture: traditional beliefs and ideologies of a country or region
Ethics: the values and principles that influence how individuals, groups and societies behave
- Something can be unethical but still legal
- Business ethics: the values and principles that operate in the world of business (social
costs, social benefits
Globalization: the process of interaction and integration between the people, firms and
governments of different nations driven by international trade.
- Expansion (exporting; hiring overseas labour)
Innovation: incremental or radical improvement to a business idea, or generation of new ideas
- An innovative solution is usually one that is not in the market;s expectations, but still
meets the demands of the market
Strategy: the set of long-term planning decisions that organizations make in order to achieve a
common goal in the interest of the organization and/or specific stakeholders
- Set of decisions that aim to achieve business objectives.
, 2
Unit 1: Business organisation and environment
1.1 Introduction to business management
A business: a decision-making organization involved in the process of using inputs to
produce goods (physical products) and/or provide services (intangible products).
THE ROLE OF BUSINESSES
To combine human, physical and financial resources to create goods and services to satisfy the
current and future wants and needs of people, orgs and governments.
- Some businesses focus on one activity, others engage in multiple activities.
Resource inputs can be:
Human: right quality & quantity of ppl required to make the product or provide the service
Physical: right quality & quantity of material/ machinery/ land to make the product or
provide the service
Financial: right quality & quantity of money to make the product or provide the service
Enterprise: entrepreneurship- it’s the business idea
Needs: basic necessities (food; water…)
Wants: what we desire
Unit 1: Business organisation and environment
❏ 1.1 Introduction to business management
❏ 1.2 Types of organisations
❏ 1.3 Organisational objectives
❏ 1.4 Stakeholders
❏ 1.5 External environment
❏ 1.6 Growth and evolution
Unit 2: Human resource management
❏ 2.1 Functions and evolution of human resource management
❏ 2.2 Organisational structure
❏ 2.3 Leadership and management
❏ 2.4 Motivation
Unit 3: Finance and accounts
❏ 3.1 Sources of finance
❏ 3.2 Costs and revenues
❏ 3.3 Break-even analysis
❏ 3.4 Final accounts (some HL only)
❏ 3.5 Profitability and liquidity ratio analysis
❏ 3.7 Cash flow
❏ 3.8 Investment appraisal (some HL only)
Unit 4: Marketing
❏ 4.1 The role of marketing
❏ 4.2 Marketing planning (including introduction to the four Ps)
❏ 4.4 Market research
❏ 4.5 The four Ps (product, price, promotion, place)
❏ 4.8 E-commerce
Unit 5: Operations management
❏ 5.1 The role of operations management
❏ 5.2 Production methods
❏ 5.4 Location
, 1
GENERAL:
Change: The adaptation of the organization to accommodate the external business environment
- Firms usually implement changes to survive, expand or remain competitive (due to
arising external influences [changes in the economy or industry])
Culture: reference to the aspects within a contextual environment which influences firms in many
ways. It can be classified into internal and external culture
- The difference in cultures is one of many factors that lead to product diversification
- Internal culture: the way the firm operates, influenced by their aims and objectives
- External culture: traditional beliefs and ideologies of a country or region
Ethics: the values and principles that influence how individuals, groups and societies behave
- Something can be unethical but still legal
- Business ethics: the values and principles that operate in the world of business (social
costs, social benefits
Globalization: the process of interaction and integration between the people, firms and
governments of different nations driven by international trade.
- Expansion (exporting; hiring overseas labour)
Innovation: incremental or radical improvement to a business idea, or generation of new ideas
- An innovative solution is usually one that is not in the market;s expectations, but still
meets the demands of the market
Strategy: the set of long-term planning decisions that organizations make in order to achieve a
common goal in the interest of the organization and/or specific stakeholders
- Set of decisions that aim to achieve business objectives.
, 2
Unit 1: Business organisation and environment
1.1 Introduction to business management
A business: a decision-making organization involved in the process of using inputs to
produce goods (physical products) and/or provide services (intangible products).
THE ROLE OF BUSINESSES
To combine human, physical and financial resources to create goods and services to satisfy the
current and future wants and needs of people, orgs and governments.
- Some businesses focus on one activity, others engage in multiple activities.
Resource inputs can be:
Human: right quality & quantity of ppl required to make the product or provide the service
Physical: right quality & quantity of material/ machinery/ land to make the product or
provide the service
Financial: right quality & quantity of money to make the product or provide the service
Enterprise: entrepreneurship- it’s the business idea
Needs: basic necessities (food; water…)
Wants: what we desire
