UGBS 101 Introduction to Business Administration Session 2

UGBS 101 Introduction to Business Administration Session 2 – Definitions and Concepts Lecturer: Dr. Daniel Quaye, UGBS Contact Information: danquaye@ug. edu. gh College of Education School of Continuing and Distance Education 2014/2015 – 2016/2017 Dr. Daniel Quaye, UGBS

Session overview • The course provides a basic understanding of the concepts and definitions of business. • It gives a general understanding of the management issues in business as well as the types of business one can proceed into. Dr. Daniel Quaye, UGBS Slide 2

What is Business? • A business is an organized, profit-seeking activity that provides goods and services designed to satisfy customers’ needs (Bovee, Thill and Mescon 2010). • A business is any organization that strives for profits by providing goods and services that meet customer needs (Fry, Stoner and Hattwick 1998). Dr. Daniel Quaye, UGBS Slide 3

The objective of Business • • • To make a profit. Business is a way of life. Business provides opportunities for gaining other forms of satisfaction. Dr. Daniel Quaye, UGBS

Historical development of Business in Ghana • • • Business in Pre-colonial Ghana. Business in Post-colonial Ghana Business in Modern Ghana Dr. Daniel Quaye, UGBS Slide 5

Goods Producing Businesses vrs. Service Businesses Characteristics of Goods Producing Businesses • Goods producing businesses produce tangible goods by engaging in activities such as manufacturing, construction, mining and agriculture. • It is difficult to start a goods-producing business without substantial investment in building, machinery and equipment. • Goods-producing businesses are capital-intensive Dr. Daniel Quaye, UGBS Slide 6

Service • A service is defined as an intangible product, performance of which mainly requires human effort or work. • Examples include, banking, health care and restaurants. Dr. Richard Boateng, UGBS Slide 7

Characteristic of Services • • • Services are intangible. Service performance (delivery) and consumption are inseparable. Services are perishable Performing services is highly labour-intensive. Services tend to be heterogeneous. Services are performed rather than produced. Dr. Richard Boateng, UGBS Slide 8

The Economic and Social roles of Businesses • It is impossible to evaluate the overall contributions and importance of businesses. The simple reason for this being that their contributions vary. Some contributions that stand out though include; Dr. Richard Boateng, UGBS Slide 9

Cont. • They provide jobs • They introduce new products • They inject a considerable of money into the economy • They add greatly to the rich variety of goods and services available to consumers • Contribute to society’s values and stability • Are a rich source of new ideas and innovations in products and services, Dr. Richard Boateng, UGBS Slide 10

Reading materials • Introduction of Business Administration Distance Education Manual- Dr Daniel Quaye. • Madura, Jeff (2007), Introduction to Business Administration, South-Western College Dr. Richard Boateng, UGBS Slide 11