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Varsity College BCOM Year 1 Business Management 1A LU 10
Varsity College BCOM Year 1 Business Management 1A LU 9
Varsity College BCOM Year 1 Business Management 1A LU 8
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University of South Africa (Unisa)
Business Management IA (MNB1501)
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,MNB1501 - ALL-IN-ONE EXAM PACK
All answers were researched using the study guide, prescribed book and memo’s
Please note that human errors are possible in this document.
TABLE OF CONTENT
Topic 1 : Introduction To Business Management
Learning Unit 1 : The business world and business management Page 3
Learning Unit 2 : Entrepreneurship Page 6
Learning Unit 3 : Establishing a business Page 9
Learning Unit 4 : The business environment Page 13
Learning Unit 5 : Corporate and social responsibility Page 18
Topic 2 : The Management Process
Learning Unit 6 : Introduction to general management Page 26
Learning Unit 7 : Planning Page 28
Learning Unit 8 : Organising Page 30
Learning Unit 9 : Leading Page 33
Learning Unit 10 : Controlling the management process Page 35
, LEARNING UNIT 1 : THE BUSINESS WORLD AND BUSINESS MANAGEMENT
1.1 The role of business in society
Transformation of resources into goods and services society needs.
Business cannot operate without society.
Needs and values of society influence what business does. i.e. protecting the environment.
Organisations influence behavior patterns of people in a particular society by developing new products. I.e.
Impact of cell phones, tablets etc. on social life.
Success of business has an impact on the prosperity of a society. i.e. mining towns.
1.2 Needs and need satisfaction
Humans have many varied and seemingly unlimited needs.
Society has limited resources to satisfy those needs, which requires a choice to be made about how best to
utilize the limited resources.
Most people have limited resources (money) to afford our unlimited wants, so we have to decide how best to
utilize the little we have to obtain the greatest satisfaction.
Decision to obtain the maximum benefit (satisfaction) with the limited resources = Economic Principal.
Consumerism = The social force that protects consumers from unsafe products and malpractices by exerting
moral and economic pressure on business.
According to Maslow, all humans have same basic needs, but not everybody strives to satisfy the same ones.
According to Maslow, once basic needs (hunger) are satisfied, we strive to satisfy the next level i.e. security
etc.
Limited resources in society :
Natural Resources (land, forests, water)
Human Resources (labour, physical and mental talents)
Capital (buildings, machinery, computers – Not for final human consumption)
Entrepreneurship (Individuals who accept the risk, also rewarded with profits for the risks)
, 1.3 Main economic systems
The world is divided into three basic economic systems :
The free-market economy
Socialism
The command economy
Free Market Economy (Free Enterprise System)
Products and services demanded by a community is supplied by private organisations seeking profit.
Members of a community may possess assets and earn profits from them.
Allocation of resources are affected by free markets.
Community can freely choose between products, services, place to stay etc.
Minimum interference from the state.
Right for individuals to possess property such as land, buildings equipment vehicles etc.
People are free to do with their assets as they wish (freedom of distribution).
Freedom of choice - producers can decide whether they can profitably produce products.
Command Economy
Alternative to Market Economy.
Known as communism.
State owns and controls resources and factors of production.
System of communal ownership. Individuals own no land, factories or equipment.
Socialism
Compromise between Free Market and Command Economies.
State owns and controls the principal/strategic industries (steel manufacturers,transportation,
communication, health and energy).
Private initiative controls less important and smaller maters such as trade and construction.
Strategic and basic resources should belong to every member of the community (Command Economy), the
rest operate within the Free Market Economy.
Mixed Economy
Includes a mix of both public and government control (capitalism and socialism).
Degree of private economic freedom with centralized economic planning and government regulation.
The prevailing economic system is South Africa is a Socialist-Oriented economy with a High degree of
government participation and control.
1.4 The need-satisfying institutions of the free market economy
The functioning of the South African economy is aff ected by need-satisfying institutions such as :
Business organisations
Government institutions
Non-profit-seeking institutions
Business Organisations
Also known as Profit Seeking Businesses.
Most are privately owned (Private Enterprises), but state can also own businesses.
State owned business = Public corporations (Transnet etc.).
Government Organisations
Do not operate on a profit-seeking basis.
Also known as Government Departments.
Provide a service to the community.
Obtain funds from Treasury (people pay for these services through taxes).
Non-Profit-Seeking Organisations
Owned by state and private organisations.
Do not strive to make a profit.
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