1.1 Introduction to business managment

decision-making organization involved in the process of production of goods and services.

are the resources that a business uses in the production process (labour and raw material), these generate outputs (products).

are the basic necessities that a person must have to survive

are people’s desires - whats they would like to have

Human resources - managing personnel and organization - workforce planning, recruitment, training, appraisal, dismissals, redundancies, outsourcing human resource strategies. Finance and accounts - managing the organization’s money, keeping track and reporting financial documentation for legal requirements and informing on the financial position of the business. Marketing - identifying and satisfying the needs and wants of customers - market research, test marketing, advertisement & branding Product - goods and services meet customers requirements Price - pricing strategies Promotion - making sure customers know about a product Place - goods and services are convenient for customers to buy Operations - responsible for the process of converting raw materials into finished goods.

businesses involved in the cultivation or extraction of natural resources, -Large percentage of output and employment in less economically developed countries (LEDCs) -There is little value added in primary production (the difference between value of inputs and the value of outputs)

firms that turn raw materials obtained from natural resources into processed products. -It’s the wealth creating sector because manufactured foods can be exported worldwide to earn income for country -Value is added to the natural resources during production

A tertiary sector is the firms that provide services to consumers and other businesses i.e. retailing, transportation, banking, finance, insurance, health care, leisure, entertainment etc. -Most substantial sector in employment and as a percentage of gross domestic product (the value of the country’s output each year) in MEDC’s

where businesses are involved in intellectual, knowledge-based activities that generate and share information e.g. ICT, R&D, consultancy services, scientific research. It exists in MEDC’s as it requires a highly educated workforce.

the link through the business sectors which tracks the stages of an items production, from extractions of raw materials used to make the product all the way through to it being delivered to the customers. The sectors are interdependent.

refers to a shift in the relative share of national output and employment that is attributed to each business sector over time.

Land - any natural resource Labour - human input, workers Capital - products that are made to produce Enterprise - people who have ideas, take risk and get paid for managing above three

owners or operators of an organization who manage, organize and plan the other three factors of production (land labor capital). They are risk takers who exploit business opportunities in return for profits

is the act of behaving as an entrepreneur but as an employee within a large business organization. Intrapreneurs work in an entrepreneurial capacity, with authority to create innovative products or new processes for the organization.

1.Growth - the value of a business owned by the entrepreneur grows 2.Earnings - they can pay themselves as much as they want 3.Transference - inheritance of family business to children 4.Challenge - high fliers need a challenge to reach their potential 5.Autonomy - some personality types prefer to maintain control of their own lives 6.Security - being your own boss can give a better sense of job security 7.Hobby - lifestyle choice to do something you love or compliment other commitments

1.Write a business plan - goals and objective of business and outline of how they will be accomplished, use of the 4 factors of production 2.Obtain startup capital - internal and external sources of finance and how it will be allocated 3.Obtain business registration - establish legal status and any licenses 4.Open a business bank account - to allow income and expenditure 5.Marketing - market research and 4Ps

Lack of finance Cash flow problems Marketing problems Unestablished customer base People management problems Legalities Production problems High production costs Poor location External influences

is a report detailing how a business sets out to achieve its goals and objectives, It helps financiers,& stakeholders in assessing opportunities and risks that may be reflected in a business plan and see their own potential gain and success of business. It must contain:

The business - legal details (name and address), costs, track records of the entrepreneur, type of business organization, aims and objectives The product - details, evidence of success, where and how it will be products, suppliers, costs, pricing strategies The market - number of customers and sales forecast, market segments and profiles, growth, competitors The finance - sources, security, cash flow forecast, profits and losses, financial health, forecast rate of return The personnel - number and type of employees, organizational structure and HR, payment systems The marketing - market research, 4Ps, USPs