1.1 Introduction to business management Flashcards
A business
Any organization set up to provide goods and/or services.
Factors of production
To produce goods and services, a business needs to cimbine human, physical, financial, and entrepreneurial resources.
Value added
The process of creating a product that is worth more than the cost of the inputs used to produce it.
Consumers
The people who use a good or service.
Human resources
Human resource management oversees staffing(personnel) within an organization.
Finance and accounts
The function of the finance department is to manage the organization’s money.
Marketing
The marketing department is responsible for identifying the needs and wants of its customers, and ensuring the organization’s goods and services meet these demands in a profitable way.
Operations
Operations, or productio, covers the process of making products from the available resources of the business.
The primary sector
The first stage of production.
The secondary sector
To businesses engaged in manufacturing and construction to create finished, unsable products.
The tertiary sector
To businesses that focus on providing a service to consumers and other businesses.
The quaternary sector
To businesses engaged in the creation or sharing of knowledge or imformation.
Entrepreneurship
The term for the activity undertaken by individuals who take calculated risks and initiative in the start-up og a new business or commercial project.
An entrepreneur
Someone who is willing to take financial risks investing in a business idea.
An intrapreneur
Someone who develops new products or services within an organization, usually a large one, for the benefit of the firm and its employers.
A business plan
A formal document that details how an orgazination intends to meet its objectives.
The private sector
The commercial sector of the economy, mainly owned and run by private individuals and organizations that typically strive for a profit.
Public sector
Controlled by regional and/or national governments.
Sole tranders
A commercial business owned by a single person
Unlimited liability
Means that the owner of a business is presonally liable for all of its debts.
Partnerships
A commercial business organization owned by two or more people.
Ordinary partnership
There are usually between 2 to 20 owners.
Deed of partnership
To prevent potential misunderstandings and conflict, most pratnerships draw up a legal contract between the partners.
Companies/corporations
Commercial businesses with limited liability and owned by their shareholders.
A stock exchange
The marketplace where people and business buy and sell second-hand company stocks and shares, e.g. the New York Stock Exchange.
Cooperatives
Strive to provide a service and to create value for their members, rather than a financial return for their member-owners.
Microfinance providers
Microfinence gives these people, women in particular, the opportunity to become self-sufficient by providing small loans, savings and other basic financial services.
Public-private partnerships
Organizations jointly established by the government and at least one private sector organization.
Social enterprises
Organizations that generate revenue but act with community objectives.
Non- governmental organizations
A type of non-profit social enterprise that is neither part of s government nor a traditional for-profit business but run by voluntary groups.
Charities
Not-for-profit organizations that operate in an altruistic way with the objectives of promoting a worthwhile cause.
Aims
Long-term goals of an organization, formulated by the senior management team.
Objectives
The targets an organization is trying to achieve.
Strategies
How an organization intends to achieve its aims and strategic objectives.
Tactics
Short-term, smaller-scale or routine decisions about how an organization intends to achieve its aims and objectives on a day-to-day basis.
Internal factors
Those within the control of an organization.
External factors
Those beyond the control of an organization.
Corponate social responsibility
To refers to an organization’s duties to its internal and extrenal stakeholders by behaving in a way that positively impacts society as a whole.
A SWOT analysis
Management tool to assess where a business is at the present time and how it is affected by the external business environment.
The Ansoff Matrix
Management growth tool, first published in an article titled ‘Strategies for Diversification’.
Market penetration
Market penetration focuses on existing markets and existing products.
Market development
The growth strategy where a business sells its existing products into new markets.
Product development
A growth strategy where a business introduces new products into existing markets.
Diversification
Involves businesses marketing completely new products new products to new customers.
Stakeholders
Individuals, organizations groups with a direct interest in the operations and perfomance of a particular business or organization.
Internal stakeholders
Members of the organization, such as employees, managers, directors and shareholders.
Employees
The people who work within an organization.
Managers and directors
People hired to be in change of certain depaartments or operations within an organization.
Shareholders
Individuals or organizations that buy shares in a company, thereby owning a part of the business.
Customers
The clients of a business.
Suppliers
Provide the goods and support services for other businesses.
Competitors
The rivals of a particular business.
The local community
Interested in businesses acting in a socially responsible way.
Pressure groups
Organizations or groups of people who have a common interest.
Financiers
Banks and other creditors that provide sources of finance for businesses.
The government
A key external stakeholder of all the businesses.
Stakeholders
The stakeholder groups with a high degree of power and insteret.
Stakeholder mapping
A management tool used to determine the key stakeholders of an organization based on the varying degrees of power and interest of the various stakerholder groups.
Conciliation
To align the conflicting interests of different stakeholder groups.
Arbitrator
To assess the conflicting interests, with the stakeholder groups agreeing to accept the judgment of independer arbitrator.
Financial rewards
To employee productivity gains.
