MNB1501 STUDY GUIDE - Business Management 1A

MNB1501
STUDY GUIDE

,BUSINESS MANAGEMENT IA - MNB1501

STUDY GUIDE

TOPIC 1: INTRODUCTION TO BUSINESS MANAGEMENT

INTRODUCTION AND AIM OF THE TOPIC

The purpose of this topic is to introduce you to the business world and the principles of
business management. It examines the importance of business activities in society, the
role played by entrepreneurs, and the process involved in establishing a business. It
also introduces the business environment in which organisations operate and concludes
with an overview of corporate social responsibility.

Learning objectives

After completing this topic, you should be able to:

1. Explain the role of business in society and describe the place of business
management within the business world.
2. Identify an entrepreneur and discuss the contribution that entrepreneurs make to
society.
3. Explain how an organisation operates and describe the process of establishing a
business.
4. Define the concept of a business environment, identify its major components,
and explain the importance of environmental scanning.
5. Explain corporate social responsibility (CSR) and discuss what it involves.

CONTENT

Topic 1 consists of five learning units:

LEARNING UNIT 1:

,The business world and business management

LEARNING UNIT 2:

Entrepreneurship

LEARNING UNIT 3:

The establishment of a business

LEARNING UNIT 4:

The business environment

LEARNING UNIT 5:

Corporate social responsibility

LEARNING UNIT 1

The business world and business management

INTRODUCTION AND AIM OF THE UNIT

This learning unit examines the importance of business activities in society. It explains
how organisations operating in a market economy make use of scarce resources to
produce goods and services that satisfy people's needs. These resources include
natural resources, human resources, financial resources and entrepreneurial ability.

The unit also introduces the major economic systems found around the world and
explains how businesses operate within a market economy. Against this background,
the unit considers the meaning and nature of business management. Business
management focuses on the principles, methods and factors that help organisations
operate effectively and efficiently.

, The unit also provides a framework for understanding how the broader field of business
management is organised into different areas of study.

*Study Chapter 1, sections 1.2–1.9, in Introduction to Business Management (ITBM).*

Contents of the learning unit

This learning unit covers:

 The role of business in society
 Human needs and the process of satisfying those needs
 Major economic systems
 Institutions that satisfy needs within a market economy
 The nature of business management
 The classification and organisation of business management study material

Learning objectives

After completing Learning Unit 1, you should be able to:

1. Describe the role that businesses play in society.
2. Explain the different needs of people and how those needs can be satisfied.
3. Discuss the three major economic systems in the world.
4. Distinguish between institutions that provide goods and services for profit and
non-profit institutions.
5. Explain the fundamental nature and purpose of business management.
6. Understand how the subject matter of business management is classified.

KEY TERMS

The following concepts are important for this learning unit:

 Community
 Needs