Session: Introduction to Business Management, Economics and Law
(BMEL)
What is a business?
Two categories:
1) Non-profit making (schools, hospitals, charities)
2) Non-profit making (manufacturers, retail, banks etc)
• You may be most familiar with the latter. Also, in the UK many non-profit
organisations have become more of a combination of profit and non-profit making
ventures.
• In this module, we mostly look at profit-making businesses.
• When businesses make a profit, they reinvest so they can grow, develop, expand
and diversify.
• They operate to increase the wealth of their owners.
• Making a profit is fundamental!
Business in context
1) Context of a business: Organisation.
This looks at the strategy of the business. Strategy is the brains of the business. How
are individuals organised to carry out business? I.e. they need specific skills that are
beneficial to production.
- Production
- Sales (need people to convince to buy)
- Marketing (very important now; using celebrities)
- Customer service (dealing with customers face to face who need help/service)
- Administration (good IT skills needed)
- Research and Development (R&D - this is usually well paid)
- Finance (Well paid jobs but can be unpredictable)
Page 1 of 6
, Strategy= also known as corporate strategy. Looks at overall aims and objectives of
a business into the future, as well as methods used to achieve goals.
- Usually done by senior management; think about where business wants to go,
what markets it wants, methods to achieve things. Well paid jobs. Very
important.
- Businesses must also pay attention to stakeholders.
- Strategy determines direction of the business. Frames what management
things.
- Without a good strategy the business would not go anywhere.
- Senior management determines overall aims and strategies for each part of
the business
and decided how each part plays its role.
Business activities
• Manufacturing goods
• Distribution
• Selling products
• Advertising and promotion
• Maintaining records of income and expenses
• Managing the workforce
• Dealing with customers
• Developing and creating new products
All these activities have a specific need and all have an important role!
Some businesses are only involved in one part. E.g. DHL only does distribution.
Another might only do manufacture.
2) Context of a business: Input, the process and output
Page 2 of 6
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller haashimmirza. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.32. You're not tied to anything after your purchase.
