Summary
Summary Introduction to Business Management
- Course
- Bcom Business Management
- Institution
- University Of Pretoria (UP)
Introduction to business management. These notes cover the first 4 chapters within the textbook
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
Matthew EggettBusiness Management
Chapter 1
The business world and business management
Role of business in society
Involves human activity.
Production – transformation of resources into products and services.
Produce products and services, to exchange for money or for other products and services.
Mixers
flour Business
Bread
sugar (bakery)
labour Products
Transformation
Resource
s (Production) (Products/services for
exchange)
Sectors
Formal sector
o Large businesses – standard bank
o Listed on the JSE
o Responsible for most of South Africa’s economic activity
Informal sector
o Microenterprises
o Not registered + people involved live primarily on a subsistence or survival basis.
o Do not contribute to rates and taxes
1|Page
, Matthew Eggett
Society’s limited resources
Unlimited needs: Limited resources:
1. Physiological needs 1. Natural resources
SATISFACTION OF
2. Safety needs 2. Human resources
THE NEEDS OF
3. Social needs SOCIETY 3. Capital
4.Esteem needs 4. Entrepreneurship
5. Self-relisation needs (including management)
Natural resources
o Production factor of land
Agricultural
Industrial sites
Residential stands
Minerals and forest
Metals
Water
o The amount of natural resources any one country possesses is given, and is in most
cases, therefore, scarce.
Human resources
o A.K.A production factor of labour, include the physical and mental talents and skills
of people employed to create products of services.
o People receive wages for their labour.
o Size of labour force = size of the population, level of education and training,
promotion of women in the labour force and the retirement age.
Capital
o Represented by:
2|Page
, Matthew Eggett
Machinery
Buildings
Cash registers
Computers
Entrepreneurship
o Fourth factor or production
o Collective capacity of entrepreneurs, who are those individuals who accept the risks
involved in providing products and services for their society.
o If they are successful then the risk of investing their capital will result in profits if
they are successful. However, if they fail the may lose a lot.
Main economic systems
Market economy
o Most products and services demanded by the community are supplied by private
organisations seeking profits. It functions on the following assumptions:
Members of community may possess assets and earn profits on these.
The allocation of resources is affected by free markets.
Members of the community can freely choose between products, services,
places of residence and careers.
The state keeps its interference in the system to a minimum.
3|Page
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 MatthewEggett. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R150,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now