MNB1501 - Business Management IA STUDY SUMMARY NOTES FOR 2022. Exchange – products & services for money or other goods/services o
Profit – reward for meeting people’s needs
• Countries have different economies o Market economy – business can
decide what to produce, how to produce & sel...
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
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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
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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
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