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INTRODUCTION TO BUSINESS MANAGEMENT :fire: :explode: - Coggle Diagram
INTRODUCTION TO BUSINESS MANAGEMENT :fire: :explode:
1.1) INTRODUCTION
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Business= decision making organization/company which involve exchange of goods or services to satisfy needs & wants of people
Main input in business
Enterprise
Land
Capital
Labor / manpower
Main business function & roles
Finance and account
- manage money and asset
Marketing
- manage promotion and advertising
Human resource
- manage workforce
Operation
- manage production/process of products
Business sector
Secondary sector
- manufacturing raw product to finished goods / component goods
Tertiary sector
- manage service and retail process
Primary sector
- Harvesting of naturally available resource (fuels)
Quartenary sector
- involve intellectual activities/ innovation service
Impact of sectoral change
Industrialisation- open job opportunity
Developed nation - more focus on tertiary sector
Entrepeneurship vs Intrapeneurship
Entrepeneur
- founder/owner , high risk/reward
Intrapeneur
- employee of organisation, low risk,reward in paycheck
Starting business
Business plan ,
Purpose
report detailed aim and objective of business
meant for investor /bank in approving loan
Element of business plan
Product - details of product (price,suppliers)
Market - market profile,competition
Business- name,type,aim,objective
Finance- money, start up cost
Personnel - employee,skills
Marketing - marketin mix
Common step to set up business
Looks for market opportunities
Business idea
Business function
Business input
Problem faced by start up
Internal - lack of workforce, no land, product not appeal to market,lack of fund
External- terrorist, politcs/government, limited resource
1.2) TYPE OF ORGANISATION
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Sectors
Public sectors
- goods & service provide by government, free /small fee (hospitals, museum)
Private sectors- goal is to make profit, owned, run and financed by private entities
profit/commercial organisation
Partnership - company run by 2 or more individual which form partnership,
Characteristic
has silence partner (individual not involve in decision making but give money and earn profit),
Has deed of partnership
-Each member contribute money and resources
Disadv- slower decision making
Adv- Liability is spread
Company
Private limited company (LTD)
Adv- limited liability , has higher capital
Disadv- More restriction, higher corporate tax
Characteristic
shareholder limited to family,friends and business partner
share cannot be sold to public
owner and company are separated entities (limited liability)
Public limited company (PLC)
Adv- more capital raised from selling stock, limited liability
Disadv - more restriction, corporate tax
Characteristic
Share of company is listed on stock exchange &freely bought by anyone
Required to publish financial statement/position
LTD can change to PLC by making initial public offering
Sole traders
- business completely own and controlled by one person
adv -little legal requirement for start up
Disadv- unlimited liabilities
FOR PROFIT SOCIAL ENTERPRISE
Microfinance
Definition- loan service offered to individuals or group with no access to more conventional banking service
Cooperatives
Adv - Equal voting power among member
Disadv- More conflicts
Definition- organisation that jointly owned & run by its member who share profit & benefits