Management and Business

Topics: Management, Strategic management, Business Pages: 22 (4047 words) Published: October 27, 2013

The Business world and business management

Primary task of Business Management:
Determine how and enterprise can achieve the highest possible output with the lease possible input. •Business can not operate without society
Transformation for resources into goods
Needs and values of a business influence what a business does •Success of a business has an influence on the prosperity of a business Unlimited needs
Physiological
Security
Social Needs
Esteem Needs
Self realisation

Overlap: Physical and Psychological needs may overlap
Consumerism: Is the social force that protects consumers from unsafe products and malpractices by exerting moral and economic pressure on a business. The economic Principle: A business effort to satisfy the great possible need satisfaction with the limited available resources. Limited Resources:

Natural Resources
Human Resources
Capital
Entrepreneurship

Main Economic System:
Free Market Economy (Capitalism)
Socialism
Command Economy

Free Market Economy:
Products and service demanded by the community is offered by a public organisation seeking profit •Minimum interference from the state
Cominity is free to choose between products, services, etc •Members of the community may possess assets and earn profits from them •Allocation of resources are affected by free markets
People can do with their assets however they wish
Command Economy:
Also known as communism
Alternative to the Market economy
State owns and controls the resources and the factory of production •Individuals own no land or factories
Productivity is very low
Socialism:
Compromise between the Free Market and Command Economy
State owns and controls the principle (Transportation)
Mixed Economy
Is an economic system that includes a mix of public and government control, or a mix of socialism and capitalism.

The need satisfying institutions of the market economy:
Business Organisations:
Mostly Private owned, but the state also owns some of them •Also know as Profit Seeking Businesses
Government Organisation
Also known as Government Departments
Do not operate on a profit seeking basis
Provide a Service to the community
Funds are obtained from Treasury (taxes)
Non-Profit Seeking Organisations
Owned by the state or a private organisation
No not Strive to make a profit
Just seek sufficient income to cover the costs
Sport Clubs

Pubic Corporations:
Owned and controlled by the state and not by a private entrepreneur •Offer products and service for a profit
Needs satisfying institutions

The nature of Business Management:
Economics: a study of how humans choose different ways of using their resources to produce products Task of Business Management: A study of principals that have to be applied to make a business as profitable as possible. Purpose of Business Management: The produce the most units of products or services at the lowest cost

ENTREPRENEURSHIP:
Characteristics:
Have innovative ideas
Take financial risks
Bring about change and growth in the economy
Find resources
Identify opportunities
Re-energise economies and creating jobs
Entrepreneur’s traits
Achievement motivation (ambition and competitiveness)
An internal locus of control (In charge of your own destiny, motivating people) •Innovation and creativity (production of something new)
Risk Taking (
Management skills required entrepreneurship
Strategy Skill:Ability to consider how business as a whole and how it fits into the market place •Planning Skill:Ability to consider what the future may offer •Marketing Skill Evaluate the offering and determine how they satisfy the customers need (pricing, promotion and distributions of products) •Financial Skill:Manage money

Project management Skill Ability to organise projects, set objectives and manage resources •Human Resources Skill Ability to deal with...
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