MNB1501 STUDY
SUMMARY NOTES
FOR 2022. This is a complete and an all-inclusive guide to MNB1501 - Business Management IA
Exchange – products & services for money or other goods/services o
Profit – reward for meeting people’s needs
• Countries have different economies o Market economy �...
Contents
1. Business world & business management ............................................................................................... 3
1.1. Key concepts .................................................................................................................................... 3
1.2. Role of business in society ............................................................................................................... 3
1.3. Needs & need satisfaction ............................................................................................................... 4
1.4. Main economic systems .................................................................................................................. 5
1.5. Need-satisfying institutions of market economy............................................................................. 7
1.6. Nature of business management & classification ........................................................................... 7
2. Entrepreneurship .................................................................................................................................... 9
2.1. Key concepts .................................................................................................................................... 9
2.2. Entrepreneurs & entrepreneurship ................................................................................................. 9
2.3. Role of entrepreneurs & small-business owners in society............................................................. 9
2.4. Entrepreneurial process................................................................................................................. 10
3. Establishing a business .......................................................................................................................... 14
3.1. Key concepts .................................................................................................................................. 14
3.2. Importance of geographical location ............................................................................................. 14
3.3. Legal forms of ownership .............................................................................................................. 14
3.4. Business plan ................................................................................................................................. 17
4. Business environment........................................................................................................................... 19
4.1. Key concepts .................................................................................................................................. 19
4.2. The organisation & environmental change ................................................................................... 19
4.3. Composition of business environment .......................................................................................... 19
, lOMoARcPSD|4433752
5.4.2. SA Initiatives & imperatives .................................................................................................... 27
5.5. Business case for CSR ..................................................................................................................... 27
5.6. Corporate governance ................................................................................................................... 28
5.7. Stakeholder & stakeholder engagement ....................................................................................... 29
5.8. Sustainable development .............................................................................................................. 29
5.9. Link between CSR & various business functions............................................................................ 29
6. Planning ................................................................................................................................................ 30
6.1. Key concepts .................................................................................................................................. 30
6.2. Why planning is needed? ............................................................................................................... 30
6.3. Managerial goals and plans ........................................................................................................... 31
6.4. The planning process ..................................................................................................................... 32
6.5. Setting organisational goals and developing plans........................................................................ 33
7. Organising ............................................................................................................................................. 37
7.1. Key concepts .................................................................................................................................. 37
7.2. Introduction to organisation .......................................................................................................... 37
7.3. Importance of organising ............................................................................................................... 37
7.4. Fundamentals of organising .......................................................................................................... 37
7.4.1. Specialisation .......................................................................................................................... 37
7.4.2. Departmentalisation ............................................................................................................... 38
7.4.3. Reporting relationships ........................................................................................................... 39
7.4.4. Responsibility & authority ....................................................................................................... 39
7.4.5. Co-ordination .......................................................................................................................... 40
7.5. Factors influencing organising & organisational design ................................................................ 40
, lOMoARcPSD|4433752
8.4.2. Behavioural theory .................................................................................................................. 42
8.4.3. Contingency (situational) theory ............................................................................................ 43
8.5. Motivation ..................................................................................................................................... 44
8.5.1. Basic model of motivation ...................................................................................................... 44
8.5.2. Maslow’s hierarchy of needs .................................................................................................. 44
8.5.3. Alderfer’s ERG theory .............................................................................................................. 45
8.5.4. Hertzberg’s 2 factor theory & job enrichment ....................................................................... 45
8.5.5. McClelland’s theory of needs.................................................................................................. 45
8.6. Groups and teams .......................................................................................................................... 46
8.7. Communication .............................................................................................................................. 47
9. Controlling the management process .................................................................................................. 49
9.1. Key concepts .................................................................................................................................. 49
9.2. Introduction to control .................................................................................................................. 49
9.3. Purpose of control ......................................................................................................................... 49
9.4. Control process .............................................................................................................................. 49
9.5. Types of control ............................................................................................................................. 50
9.5.1. Physical resources ................................................................................................................... 51
9.5.2. Financial resources .................................................................................................................. 51
9.5.3. Information resources ............................................................................................................. 52
9.5.4. Human resources .................................................................................................................... 52
9.6. Characteristics of an effective control system............................................................................... 52
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 EFT, credit card or Stuvia-credit 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SOLUTIONS2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R65,13. You're not tied to anything after your purchase.
