2.1 Intro to business management Flashcards
What is a business?
A business is an organisation that provides goods or services to customers in exchange for profit
What is business management?
The process of planning, organising and controlling resources to achieve the goals of a business
What is a good?
They are tangible, physical products that can be touched, seen, and stored. They are usually produced and then sold to customers
Examples: Clothes, electronics, furniture, books and food items
What is a service?
They are intangible and represent activities, performances, or tasks that are provided to customers. They are usually performed by people or systems to meet specific needs or to offer assistance
Examples: Haircuts, education, healthcare, banking, transportation, and entertainment
What are the main business objectives?
-Making a profit
-Increase market share
-Fulfil a market need
What is innovation?
When a business develops and applies new ideas that are an improvement to the good or service that is currently offered in the market - not an invention
What is making a profit?
Profit = revenue - costs
Therefore maximising profit means maximising revenue and minimising production costs
What is fulfilling a market need?
This is where a ‘gap’ in the market is filled.
For example, in Australia we have an ageing population, and there is an increasing demand for retirement communities. Seeing these opportunities, producers will take advantage of this demand. It can also mean providing something that has never been provided before
What is entrepreneurship?
The process of starting and managing a new business venture, taking on financial risks in hope of making a profit
What is innovation?
When a business develops and applies new ideas that are an improvement to the good or service that is currently offered in the market
Why is innovation important?
It drives growth, customer engagement, and long term success. It allows you to meet changing market demands, differentiate yourself from competitors and create value for customers, employees and stakeholders
What is a mixed business?
A business that provides goods and services
