1.1 Introduction Flashcards
Business
process of making money by producing goods or services for customers to resolue a problem
Inputs
raw materia machinery
Processes
turning inputs into manufactured good or provisions of services
Outputs
provision of final goods and services
Good
something you can touch and manipulate (tangible)
Service
action of helping or doing work for someone (intagible)
Want
something that an individual desires to possesses
Need
something we cannot live without
Customer
person who makes the purchase
Consumer
anyone that consumes and uses a product or service
Consumer goods
products that are bought by individuals or households for personal use
Capital goods
goods that are used to make other goods, but are still considered finished goods
Factors of production
land,labor,capital,entrepreneurship
Role of human ressources
Hiring (recruitment) / Firing (dismissals)
Training
Workforce planning
Appraisals: evaluation of the performance
Role Fiance and accounts
managing the organizations money
Role Marketing
market research
advertising
branding
4ps of marketing:
- product
- price
- place
- promotion
Role of Primary Sector
industry involved in the extraction and production of raw materials
Framing/ mining/ fishing/ hunting
Role of Secondary Sector
Manufacturing or construction of products
output is sold to customers
Cars/clothes/phones
Role of Tertiary sector
providing services to the population
banks/hotel/insurance companies
Role of quaternary sector
involved in intellectual and knowledge based activities
generate and share information
expensive and highly specialized
Chain of production
production
manufacturing
Services
Consumers
Entrepreneurship
Traits of individuals who can run their own business
Willing to take risks by investing in a business
Entrepreneur= RISER
Risk taker
Innovative
Strategic
Enthusiastic
Resilient
Why do people start their own business?
Money
Autonomy
Challenges
Passion
Family Ties
Unfilled Market Opportunities
Making a difference
