1.1 Introduction to Business Management
The role of businesses
Business → decision-making organization involved in the process of using inputs to produce
goods and services
Goods → physical products (cars, computers, books)
Services → intangible products (haircuts, bus rides, education, healthcare)
Needs → basic necessities that a person must have to survive (food, water)
Wants → people’s desires, things they would like to have (new smartphone, vacation)
The main functions of business
Human Resources → responsible for managing personnel of the organization (workforce,
recruit, training, etc)
Finance and Accounts → in charge of managing the organization's money (recording of
financial documentation)
Marketing → identifying and satisfying the needs and wants of customers (product, price,
promotion, place)
Operations Management → responsible for converting raw materials into finished goods
ready for sale
Business Sectors
Primary sector → business involved in cultivation/extraction of natural resources (farming)
Secondary sector → construction and manufacturing of products (clothes manufacturer)
Tertiary Sector → providing services to the general public (health care, banking)
Quaternary sector → subcategory of tertiary, intellectual knowledge-based activities (ICT,
scientific research)
,The role of entrepreneurship and intrapreneurship
Entrepreneur → individual who plans, organizes and manages a business, taking on
financial risks in doing so
Entrepreneurship → the trait of business leaders who tend to be distinctive in their
temperament, attitude and outlook who drive the business
Intrapreneurship → the act of being an entrepreneur but as an employee within a large
organization
Intrepreneur → an employee who thinks and acts as an entrepreneur within a section of the
organization. Independent, proactive, creative and generates new ideas and innovations to the
organization.
Reasons for starting up a business (GET CASH)
Growth → benefit personally
Earnings → earn money if costs are outweighed
Transference & Inheritance → passing on assets/businesses to next generation
, Challenge → drives people to perform and give personal satisfaction
Autonomy → independence, freedom of choice and flexibility
Security → more job security for someone who is their own boss
Hobbies → some people may want to pursue their passion or turn hobby into business
Steps in the process of starting up a business (WOOOM!)
Write a business plan → document that includes goals and objectives for new business
Obtain start-up capital → starting a business requires money (own savings, loans)
Obtain business registration → registration and licensing requirements
Open a business bank account → owner(s) needs to set up a bank account
Marketing → potential customers need to know about the business and its products
