What is business management?(Details) Flashcards
Components of business as a system
-Inputs
-Process
-Outputs
-Feedback
Types of inputs
-Physical(e.g. raw materials, machines, etc.)
-Financial(money)
-Human resources(e.g. managers, employees, etc.)
Types of business functions/processes in business
-Human resource management
-Finance and accounts
-Marketing
-Operations
How do feedback loops occur?
They happen when the output of a system becomes an input to the same system
Types of feedback
-Positive feedback(pushes business further in the same direction)
-Negative feedback(pushes business in opposite direction)
Types of sustainability
-Sociocultural sustainability(people)
-Environmental sustainability(planet)
-Economic sustainability(profit)
Sectors of the economy
-Primary sector
-Secondary sector
-Tertiary sector
-Quaternary sector
Steps to starting a business
-Refining the idea(by using market research, getting feedback, etc.)
-Preparing a business plan
-Deciding on a legal structure
-Registering the business
-Finding a location(not usually needed for online businesses)
-Hiring employees(in some cases)
-Getting funding(many entrepreneurs just use their personal savings)
Purpose of SWOT analysis
Shows businesses their internal strengths and weaknesses, as well as external opportunities and threats
Purpose of STEEPLE analysis
Allows businesses to more easily analyse the external factors that affect them
Elements of a STEEPLE analysis(Hint; what STEEPLE stands for)
-Sociocultural factors
-Technological factors
-Economic factors
-Environmental factors
-Political factors
-Legal factors
-Ethical factors
Key concepts in business management
-Change
-Creativity
-Ethics
-Sustainability
