Unit 1 intro to business Flashcards
What is a business
A decision-making organization involved in the process of using inputs to produce goods and/or services
Inputs
Capital, enterprise, land, labour
Processes
Human resources, finance, marketing, operations management
Outputs
Goods, services
Why do functional areas of a business exist
To carry out tasks to make a business organization operate effectively
These departments are interdependent
They are HR, Finance, Marketing, Operations Management
HR (Human resources)
Manages the personnel of the organization
What do personnel issues include
Workforce planning
Recruitment
Training
Appraisals
Dismissals
Redundancies
Outsourcing HR strategies
Finance and Accounts
Manages the organization’s money
Accurate recording and reporting of financial documents must take place to:
- Comply with legal requirements ie taxation laws
- Inform stakeholders such as shareholders and potential investors
Marketing
Responsible for identifying and meeting the needs and wants of customers
Key functions focus on the seven Ps of marketing
product
price
place
promotion
people
processes
physical evidence
Operations management
Responsible for the process of converting raw materials and component into finished goods
Operations management also applies to the process of providing services to customers
Business sectors
sectors of an economy in which businesses are classified according to the stage of production they are engaged in
Primary sector
businesses involved in the extraction, harvesting and conversion of natural resources
Secondary sector
businesses involved in the manufacturing or construction of products
Tertiary sector
businesses specialized in providing services to the general population
