Business Organization and Management: An Introduction. Mrs. Chandler. What is business?. What is business?. A business is an organisation that has been specifically set up to provide some kind of product or service to its customers. Name 5 businesses.
Business Organization and Management: An Introduction
What is business?
What is business? A business is an organisation that has been specifically set up to provide some kind of product or service to its customers.
Name 5 businesses
basic features distinguish business activities from non-business activities. Businesses are all owned. Businesses need to be set up under certain rules. Businesses need to keep records of what they do. Businesses need to operate within certain laws. Businesses have customers. Businesses can be small and be made up of just one person, or large, with thousands of employees. Businesses can be privately owned or be owned by the government.
Business or not Is the school a business? Is the government running a business when it provides services such as libraries or a police force? Is a charity, such as the Cancer society, a business when it sells nothing?
What Businesses Do Take Inputs Process/Manufacture Output Costs – Fixed and Variable Revenue Profit
Business Aims Make a profit Maximize Sales Be very competitive Provide charitable services Provide goods to local community
What is a profit? Profit is one of the rewards of setting up in business Profit is the money that’s left after you’ve taken away your costs from your sales revenue Profit = Sales - Costs Loss – When the costs/expenses are more than the sales/revenue
Goods and services Goods – tangible products such as computers, food, clothing, cars and appliances. Examples? Services – Intangible products (products that cannot be held in your hand). Examples?
Who are the stakeholders? Anyone who has an interest in the success of a business Customers Managers Employees Owners Local Community/Environment Suppliers Government Creditors Investors
The Business Environment The business environment consists of the surrounding factors that either help or hinder the development of businesses.
Today’s Dynamic Business Environment Technological Environment Information and technology Databases Barcodes The Internet Social Environment Diversity Demographic changes Family changes Competitive Environment Degrees of competition Components of competition Stakeholder recognition and empowerment. Legal and Regulatory Environment Freedom of ownership Contract laws Elimination of corruption Economic Environment Tradeable currency Minimum taxes Imports and exports Employment levels & productivity
Week 1 review
Check your understanding What is a business? Give three features of a business. What is a good and service? Give examples. What is a profit? Who are stake holders? What is the business environment?