IB BUSINESS MANAGEMENT INTRODUCTION TO BUSINESS MANAGEMENT 1
IB BUSINESS MANAGEMENT INTRODUCTION TO BUSINESS MANAGEMENT 1. 1
What is a business? • A business is an organization that brings together resources to produce goods and services that are sold to customers. • Resources can be human, financial, or physical.
What are Human Resources? • Human resources are the people aspects of a business. ØDirect labor: produce the goods or services ØIndirect labor: support the running of the organization ØManagers: direct the organization
Financial Resources • Financial resources are the funds a business has to facilitate its organization. • Finance involves the : ØDay to day funds : wages, raw material ØLong-term finance: investment in plant or machinery ØRecording of business profits and asset value
Physical Resources • Physical Resources are the capital of the business. Physical Resources Buildings Fixtures and Fittings Equipment
So, in short, a business is: • Land (capital) • Labor • Raw material • Entrepreneur or enterprise Products (goods or services) Input Process Output
• The inputs are also called the factors of production. • . . DownloadsFour Factors Of Production- Practice Problems Included!. mp 4
Capital vs. Labor Intensive Production
The Role of the Main Business Functions • There are four main business functions (departments): ØHuman resources: responsible for managing people in the organization ØFinance: makes sure the business has the funds to operate and keep running ØMarketing: responsible for discovering, predicting, and satisfying the needs and wants of customers in a profitable way ØOperations: responsible for managing physical resources efficiently
Differences Between Wants and Needs of the Customers • budgeting 101
Business Sectors
Business Operating in the Primary Sector of the Economy Agriculture Forestry Fishing Mining
Businesses Operating in the Secondary Sector • Manufacturing Organizations
Businesses Operating in the Tertiary Sector Provide services to consumers or other businesses. Examples are: Restaurants Banks Retailers
Businesses Operating in the Quaternary Sector • Focuses on informational technology and intellectual activities
• . . Downloadsvideoplayback (5). mp 4
Impacts of Sectoral Change on Business Activity • Change in economic structure (primary to secondary, secondary to tertiary, etc. ) • Industrialization • When a country moves towards the manufacturing sector as its principal output and employment (primary to secondary) • Products become more refined and have more export potential • Raises the standard of education • Opens better job opportunities • Developed nation • Exploits the tertiary sector as the national output of employment • Further raises the standard of education
Entrepreneurship vs Intrapreneurship • An entrepreneur is an individual that sees a business opportunity and uses resources to grasp the opportunity in the form of satisfying a consumer want. • An intrapreneur is someone who works within a business in an intrapreneurial way to develop a firm’s products to attract new customers. • . . Downloadsvideoplayback (6). mp 4 • . . Downloadsvideoplayback (7). mp 4
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