![Syllabus
1. Business and its environment • Business structure
• Size of business
• Business objectives
• Stakeholdersin a business
2. People in organisations • Management and leadership
• Motivation
• Human resource management
3. Marketing • What is marketing?
• Market research
• The marketing mix
4. Operations and project management • The nature of operations
• Operations planning
• Inventory management
5. Finance and accounting • The need for business finance
• Sourcesof finance
• Costs
• Accounting fundamentals
• Forecasting cash flows and managing working capital
6. Strategic management • [No topics at AS Level]](https://image.slidesharecdn.com/businessstudies-240206163701-7c55b0f7/85/business-studies-for-students-of-business-2-320.jpg)
business studies for students of business
- 2. Syllabus 1. Business and its environment • Business structure • Size of business • Business objectives • Stakeholdersin a business 2. People in organisations • Management and leadership • Motivation • Human resource management 3. Marketing • What is marketing? • Market research • The marketing mix 4. Operations and project management • The nature of operations • Operations planning • Inventory management 5. Finance and accounting • The need for business finance • Sourcesof finance • Costs • Accounting fundamentals • Forecasting cash flows and managing working capital 6. Strategic management • [No topics at AS Level]
- 3. Assessments
- 4. Purpose of business activity Identify and satisfy the needs and wants of people Need –essential for survival; want- desires (Luxuries) Make use of resources/fop- inputs required by a business Overall aim of earning profit (revenue-cost) Produce goods/services Consumer goods and capital goods? (tangible- you can touch) Types of consumer goods? Durable (last over a period of time) and non durable (intangible) (don’t last. Perishable) Consumer services?
- 5. Resources/ FOP Land: land itself and its resources both (sea and land) Labour: Manual and skilled workforce Capital: not just finance but all the man-made resources example? Machinery, tools and equipment Enterprise: combines other fop into one unit. Managing, decision making, coordination & risk taking
- 6. Nature of economic activity Business activity involves concept of creating value/adding value Involves selling goods/services at a higher price than the cost of materials To add extra features to a product or process it further The customer is willing to pay more after the “value addition” Value added= selling price – cost of raw material (not all the costs) Native communities would exist otherwise (hunters and gatherers)
- 7. What a business needs to succeed Factors of production including Finance (capital) Planning Contacts Customers Suppliers
- 8. Economic problem Needs and wants difference Limited resources unlimited wants Scarcity wants are unlimited but the resources rrequired to satisfy the wants are limited Applies to rich and poor both Cant satisfy all needs and wants therfore choices are required How to make a choice? prioritize Including government, businesses, workers Opportunity cost- next best alternative foregone
- 9. Entrepreneur Qualities? • Innovation • Good planner and organizer • Commitment and self motivation • Multi-skilled –make, promote, sell and keep accounts • Leadership skills and motivate workforce • Self confidence • Risk taking • Optimist • Charismatic • Ability to bounce back
- 10. Entrepreneur: Challenges? • Identification of successful business opportunities Where does the idea come from? -own skills/hobbies -previous employment -conferences and exhibitions -market research • Finance -lack of own finance -unaware of grants and financial support -no trading record for banks, higher ir -business plan that does not convince a potential investor • Location -work from home -Not close to potential market -cause family tension • Competition and building customer base -already existing consumers -personal customer care -pre/after sales service
- 11. Why business fails? Lack of record keeping/ planning accurate and up to date records soft and hard copy back up should be done Lack of funds :cash and working capital (day to day transactions) cash flow forecast (inflows and outflows of cash) inject sufficient cash establish good relations with the banks Lack of expertise/skills leadership, management, planning, decision making, coordinating, marketing, sales Changes in business environment as Business environment is dynamic : Everything is changing ( demand doesn't stay the same . Fashions changes) Economic changes e.g inflation ( demand decreases and purchasing power of people decreases) Production/technical (techniques might be outdated) Competition’s behavior (try to drive you out of biz) Employees’ demands ( demanding higher wages) Legal changes (rules, regulations and law)
- 12. 3 sectors in business activity Primary sector: extraction of resources or involves changing natural resources into primary products Examples: Fishing, Mining, Farming, Forestry Secondary sector: converts the primary goods into manufactured goods Examples: Construction, Textile production, Processing Tertiary sector is the service industry. Examples: Banking, Hair cutting, Teaching Industrialization – moving from primarysecondary sector. Takes place in the developing world De-industrialization- moving from secondarytertiary sector. Developed world
- 13. 4 imp roles of the govt Economic growth measured by an increase in GDP (gross domestic product) output produced by a country in a given year in a given time period Employment generation. Will give them income and increase consumption/ demand in the economy. Govt will not have to spend on unemployment benefits BOP(balance of Payments)+ve- (X>M) & -ve(M>X). +ve will attract foreign exchange inwards and vice versa Control inflation- sustained and persistent increase in general price level in the economy
- 14. Role of businesses in the development of a country provide employment Economic growth/ increase the GDP/output of the country Improved standard of living Increase consumption by satisfying the needs and wants of the people Increased taxes for the government revenue Innovation and technological change Exports bring foreign currency if the products are sold outside the country Personal development and Social cohesion
- 15. Social enterprises They operate for the well being of the society Not charities Making profit is not the main aim Main aim is to solve social problems faced by people Profit is kept to provide more services They normally provide education and health Common features; -directly produce goods/service -social aims and achieve them via ethical (moral) ways -profit making for survival as they cant run on donations/charities Measure the aims of a business via Triple bottom line -Economically: profit for reinvestment -Socially: support for local and disadvantaged communities -Environmentally: protect env and mange business that way