1.1 INTRODUCTION TO BUSINESS MANAGEMENT (Business Function (Economic…
1.1 INTRODUCTION TO BUSINESS MANAGEMENT
What is business?
organisation that uses resources to meet the needs of customers by providing a product or service that they demand.
Role of business
Identify the needs of the consumers
Purchase resources (inputs) to produce the outputs
-resources needed by business to produce goods or services
workforce of the business
renewable & non-renewable resources
finance needed to set up business and pay for operations
driving force of the business
-goods & services that satisfy consumers’ needs with aim of making profit
the physical and tangible goods sold to the general public.
durable (use repeatedly) and non-durable (use once)
non-tangible products that are sold to the general public
physical goods that are used by industry to aid in the production of other goods and services.
Manage human resources - achieve its overall objective.
Identify the workforce needs.
Recruits, select and trains appropriate employees
Finance & Accounts
Monitoring the flow of finance.
Providing financial information
Responsible for market research & analyzing the results
Make decision of the price & promotion.
Ensuring adequate resources are available for production.
Maintaining the production and quality levels.
Achieving high levels of productive efficiency
- firm engaged in extraction of natural resources so that they can used and processed by other firms.
Secondary sector- firm that manufacture and process product from natural resources
- firms that provide services to the consumers and other business
focused on IT business and information service provider
Obtain finance for the start-up
For the planning process to ensure company success
Can be used as the target that the business should aim for
Allow potential investors in the new business
Act as budgets and control benchmark for internal stakeholders
Used to apply for additional funding, attract additional partner or supply data to experts
Helps identify specific objectives and targets
Suppliers able to tell if it is worthwhile establishing a long term trading relationship with the business.
future projection of sales, profit, cash flow(At least 1 year ahead)
premises to be used, production facilities & IT system
Management team and personnel:
skills and experience of the entrepreneurs and the staff he intended to hire.
Marketing & sales strategy:
why entrepreneurs thinks customers will buy, how the business aims to sell
Description of the business opportunity:
details of the entrepreneurs, what to sold, why and to whom
: overview of the business and strategies
Def: a written document that describes a business, its objective and strategies, the market it is in and its financial forecasts.
Starting a business
Changes in the business environment
New competitors, legal changes, economic changes & technological changes
Making original business idea less successful.
Poor management skills
Not have experience in business skills and managing skills
Lack of finance & working capital
Lack of awareness of financial support & grant available
Lack of sufficient own finance
Lack of record-keeping
Accurate records is vital for taxes, bills and debtors
Have to offer better customer service
from older, established business.
4. Building a customer base
Establish itself in the market & build up customer numbers as quickly as possible
3. Determining a location
need to minimize fixed cost.
2. Sourcing capital:
business have to raise the necessary capital from bank or own savings.
1. Identifying market opportunities:
that will generate sufficient demand for their products/service
Impact of entrepeneurship
: Advanced in application of IT.
Firm’s survival & growth
: will take place of declining business so can balance out the economy.
:increase the gross domestic product of the country & tax revenues for the government
: entrepreneur employing other people,create additional jobs offer
Entra & Intra
Commitment & self-motivation
Belief in oneself
: someone within large corporation who turning an idea into a profitable product using ‘entrepreneurial talent’.
: someone who take the financial risk of starting and managing a new venture