1.1 introduction to business management
- 2. Role of Business Input Process Output
- 4. Business Businesses exist to satisfy the needs and wants of people, organizations and governments Market Customers Market place
- 5. Adding Value Adding value is increasing price of the products by improving packaging or adding features It leads to profit making by allowing a business to sell its products for more than its production costs
- 6. Opportunity Cost This next best alternative foregone while making a choice is known as Opportunity Cost Because of the fact that choice involves opportunity cost, the factors of production have to be used in the most efficient way and therefore SPECIALIZATION
- 7. Division of labor The separation of a work process into a number of tasks, with each task performed by a separate person or group of persons.
- 8. Business Functions Human Resources (Personnel) Marketing Finance Production (Operations)
- 9. Human Resources Manpower Planning Job analysis and Job description Determining wages and salaries Recruitment and Selection Training and Development Employee welfare and motivation Labour management relations Performance Appraisal
- 10. Marketing Conducting Market Research Price Planning Customer Relationship Management Identifying New Business Opportunities Product Planning Distribution Planning Consumer Analysis
- 11. Finance Advice on the financial and tax implications of business decisions Management of wages Raising Finance Preparation and monitoring of annual budgets and forecasts
- 12. Production Production and planning Purchasing department Stores department Manufacture of products Design and technical support department
- 14. Primary sector Larger sector in underdeveloped & developing countries Less capital investment Less use of machinery Agriculture constitutes the major part
- 15. Secondary sector Takes the output of the primary sector and manufactures finished goods Important sector to promote economic growth and development Important source of income in developing countries
- 16. Tertiary sector Significant contribution to GDP in developed countries Provides key inputs to most other business Transformation of goods through providing services
- 17. Quaternary Sector The portion of an economy that is based on knowledge applicable to some business activity that usually involves the provision of services Examples: Consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields)
- 19. Sectoral change Refers to a shift in the GDP contribution from primary sector to secondary and tertiary sector
- 21. Reasons for sectoral change Cultural Changes Development of Markets Market orientation Rampant migration Focus on customer relationship management
- 22. Benefits of sectoral change Creation of more jobs Gradual movement towards Tertiary sector High capital investment towards Government Increase in country’s GDP Decrease in imports & increase in exports
- 23. Role of Entrepreneurship Bringing together the factors of production Contributes towards growth of economy Reduces unemployment
- 24. Intrapreneurship Giving opportunity to a person within a large corporation to take direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation
- 25. Start-up cost of business Premises Buildings Capital equipment Marketing costs Legal and professional fees
- 26. Factors to consider when setting up business: Business idea Finance Human resources Entrepreneurial skills Fixed assets Suppliers Customers Marketing Legalities
- 27. Reasons for starting business Growth Earnings Autonomy Security Hobbies
- 28. Challenges of start-up business Obtaining Finance Market potential Cash flow problems Customer Loyalty towards other brands Regulations Finding the right staff Uncertainty
- 29. Elements of Business Plan
Editor's Notes
- #3: Combination of human, physical and financial resources to create output
- #5: Difference between customer and consumer
- #15: Despite employing 51% of the workforce, it produces just 15% of the National GDP
- #16: Employing 22% of the workforce and contributing 26% of the nation’s GDP
- #20: Shift in the sector attributed to national output