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BM unit 1.1, BM unit 1.4, Sectors of Economy : - Coggle Diagram
BM unit 1.1
Definitions
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Capital Goods:
Physical goods that are used by industry to aid in the production of other goods and services such as machines and commercial vehicles
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Non-durable consumer goods:
include food, drinks and sweets that can only be used once.
working capital:
is the fund which is used for daily operation of business. that acts an important concepts in finance
Business functions
Human Resource (HR) Management:
identifies the workforce needs of the business, recruits, selects and trains appropriate employees and provides motivational systems to help retain workers and encourage them to work productively.
Manufacturing and production:
Manufacturing focuses exclusively on the conversion of tangible items like raw materials into finished productions, whereas production includes non-tangible items in the conversion process.
Human Resources:
- The aim of this business function is to manage human resources to help the business achieve its overall objectives
- It also draws up contracts of employment and covers the redundancy or redeployment of employees if these become necessary.
Accounting and Finance:
This function has responsibility for monitoring the flow of finance into and out of the business, keeping and analyzing accounts and providing financial information to both senior management and other departments.
Marketing:
This department is responsible for market research and for analyzing the results of such research so that consumer wants can be correctly identified.
Starting Business
Why Yes?
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-Make money idea, profitable
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Industralization
Benefits:
-Raised total national output (GDP), increases average standard of living
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-Value is added to products rather than exporting as basic, unprocessed goods
Threats:
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Depopulation in rural areas, problems for farmers in recruiting enough workers
May make it difficult for businesses to recruit and retain sufficient staff from expansion of manufacturing industries
Business import costs will vary and is unstable in exchange, therefore imports of raw materials and components are often needed, increase import costs
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CELL
Business Factors
Capital: The finance needed to set up a business. and used to continue operations or the man-made resources used during production
Enterprise: Driving force of business (without this businesses will fail to provide goods and services) These individuals are in charge of decision-making and managing
Land: Not only includes the land itself but all renewable and non-renewable resources of nature like coal, oil, etc.
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BM unit 1.4
Stakeholder
- is either an individual, group or organization who is impacted by the outcome of a project. they have an interest in the success of the project.
- A corporate stakeholder is a party that affects or can be affected by the actions of a business as a whole
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external stakeholder
those who do not directly work with a company but are affected somehow by the actions and outcomes of the business.
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Worker Participation
Advantage: Workers have real contribution to make business decisions, participation can motivate staff to work more effectively
Disadvantage: Managers believe participation waste time and resource, information can’t be disclosed to staff other than senior managers
Arbitration
Advantage: independent arbitrator will hear arguments from both sides, consider fair solution- reach compromise
Disadvantage: Neither stakeholder group will be likely to receive what is exactly wanted, costs may rise if arbitrator propose higher wage or better work conditions than employees original offering
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Stakeholders Conflict
Business decisions and activities can have both positive and negative effects on stakeholders, but it is rare for all stakeholders to be either positively or negatively affected by any one business activity.
It is also possible for any one stakeholder group to experience both negative and positive effects from the same business decision.
This is why conflicts of interest between stakeholder groups, with different objectives and interests, can arise.
Pressure groups
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Community based organizations are sometimes formed to collectively address issues of concern. Due to the strength generally associated with numbers, all these pressure groups are more effective than individual attempts against corporate threats.
Sectors of Economy :
- Secondary: Manufacture of Construction
Eg. Building, Processing Food, Manufacturing
Capital goods used to make other goods and services, consumer goods, utilities and construction
- Primary: Extraction, harvesting & conversion of natural resources (less developed countries)
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Eg. Transport, Banking, Teaching, Nursing, Legal Services, Accounting
- Quarternary Sector of 3; Research and Development, Information, Communication Technology (ICT), Consultancy