B100 An introduction to business and management
Block 1
Readings 1–11
By Anja Schaefer, with contributions from Chris Cornforth
,This publication forms part of the Open University module B100 An introduction to business and management. Details of
this and other Open University modules can be obtained from Student Recruitment, The Open University, PO Box 197,
Milton Keynes MK7 6BJ, United Kingdom (tel. +44 (0)300 303 5303; email ).
Alternatively, you may visit the Open University website at www.open.ac.uk where you can learn more about the wide
range of modules and packs offered at all levels by The Open University.
The Open University, Walton Hall, Milton Keynes MK7 6AA.
First published 2015. Second edition 2017
Copyright © 2017 The Open University.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, transmitted or utilised in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from
the publisher or a licence from the Copyright Licensing Agency Ltd. Details of such licences (for reprographic
reproduction) may be obtained from the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London
EC1N 8TS (website www.cla.co.uk).
Open University materials may also be made available in electronic formats for use by students of the University. All
rights, including copyright and related rights and database rights, in electronic materials and their contents are owned by
or licensed to The Open University, or otherwise used by The Open University as permitted by applicable law.
In using electronic materials and their contents you agree that your use will be solely for the purposes of following an
Open University course of study or otherwise as licensed by The Open University or its assigns.
Except as permitted above you undertake not to copy, store in any medium (including electronic storage or use in a
website), distribute, transmit or retransmit, broadcast, modify or show in public such electronic materials in whole or in
part without the prior written consent of The Open University or in accordance with the Copyright, Designs and Patents
Act 1988.
Edited and designed by The Open University.
Typeset by The Open University.
Printed in the United Kingdom by Hobbs the Printers Limited, Brunel Road, Totton, Hampshire SO40
3WX
ISBN 978 1 4730 03323
2.1
,Contents
Reading 1: What is a business? 5
Introduction 5
1 Defining the meaning of business 5
Summary 7
References 8
Reading 2: Different types of business 9
Introduction 9
1 Classifying businesses by size 10
2 Classifying businesses by industry sector 12
3 Ownership structures and legal forms 13
4 Examples of different businesses 15
Summary 17
References 18
Reading 3: Businesses and other types of organisation 19
Introduction 19
1 The differences between organisations in the three sectors 20
2 Hybrid organisations 22
Summary 24
References 25
Reading 4: What is management? 26
Introduction 26
1 What managers do 27
2 What others think managers do 29
Summary 32
References 33
Reading 5: The external environment of a business 34
Introduction 34
1 Sociological factors 34
2 Technological factors 35
3 Economic factors 38
4 Environmental factors 40
5 Political and legal factors 42
6 Ethical factors 44
Summary 44
References 45
Reading 6: Business, society, stakeholders and ethics 46
Introduction 46
1 Business and society 46
2 Stakeholders 48
3 Business ethics 51
Summary 53
Reading 7: The business functions 54
, Introduction 54
1 Human resource management 54
2 Marketing 55
3 Accounting and finance 56
4 Operations 58
5 Information management 58
Summary 59
Reading 8: SWOT analysis 60
Introduction 60
1 Strengths, weaknesses, opportunities and threats 60
2 Conducting a SWOT analysis 62
Summary 67
References 68
Reading 9: Organisational structure 69
Introduction 69
1 Types of organisational structure 70
2 The importance of structure 71
3 Formal and informal structures 74
4 Dimensions of structure 75
5 Virtual organisations 77
Summary 79
References 80
Reading 10: Organisational culture 81
Introduction 81
1 Definitions of culture 82
2 Elements and types of organisational culture 84
3 Informal elements of culture and subcultures 87
4 Factors influencing organisational culture 89
Summary 91
References 92
Reading 11: Values and beliefs 93
Introduction 93
1 What are values? 93
2 Different value types 94
Summary 97
References 98
Acknowledgements 99
Block 1
Readings 1–11
By Anja Schaefer, with contributions from Chris Cornforth
,This publication forms part of the Open University module B100 An introduction to business and management. Details of
this and other Open University modules can be obtained from Student Recruitment, The Open University, PO Box 197,
Milton Keynes MK7 6BJ, United Kingdom (tel. +44 (0)300 303 5303; email ).
Alternatively, you may visit the Open University website at www.open.ac.uk where you can learn more about the wide
range of modules and packs offered at all levels by The Open University.
The Open University, Walton Hall, Milton Keynes MK7 6AA.
First published 2015. Second edition 2017
Copyright © 2017 The Open University.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, transmitted or utilised in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from
the publisher or a licence from the Copyright Licensing Agency Ltd. Details of such licences (for reprographic
reproduction) may be obtained from the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London
EC1N 8TS (website www.cla.co.uk).
Open University materials may also be made available in electronic formats for use by students of the University. All
rights, including copyright and related rights and database rights, in electronic materials and their contents are owned by
or licensed to The Open University, or otherwise used by The Open University as permitted by applicable law.
In using electronic materials and their contents you agree that your use will be solely for the purposes of following an
Open University course of study or otherwise as licensed by The Open University or its assigns.
Except as permitted above you undertake not to copy, store in any medium (including electronic storage or use in a
website), distribute, transmit or retransmit, broadcast, modify or show in public such electronic materials in whole or in
part without the prior written consent of The Open University or in accordance with the Copyright, Designs and Patents
Act 1988.
Edited and designed by The Open University.
Typeset by The Open University.
Printed in the United Kingdom by Hobbs the Printers Limited, Brunel Road, Totton, Hampshire SO40
3WX
ISBN 978 1 4730 03323
2.1
,Contents
Reading 1: What is a business? 5
Introduction 5
1 Defining the meaning of business 5
Summary 7
References 8
Reading 2: Different types of business 9
Introduction 9
1 Classifying businesses by size 10
2 Classifying businesses by industry sector 12
3 Ownership structures and legal forms 13
4 Examples of different businesses 15
Summary 17
References 18
Reading 3: Businesses and other types of organisation 19
Introduction 19
1 The differences between organisations in the three sectors 20
2 Hybrid organisations 22
Summary 24
References 25
Reading 4: What is management? 26
Introduction 26
1 What managers do 27
2 What others think managers do 29
Summary 32
References 33
Reading 5: The external environment of a business 34
Introduction 34
1 Sociological factors 34
2 Technological factors 35
3 Economic factors 38
4 Environmental factors 40
5 Political and legal factors 42
6 Ethical factors 44
Summary 44
References 45
Reading 6: Business, society, stakeholders and ethics 46
Introduction 46
1 Business and society 46
2 Stakeholders 48
3 Business ethics 51
Summary 53
Reading 7: The business functions 54
, Introduction 54
1 Human resource management 54
2 Marketing 55
3 Accounting and finance 56
4 Operations 58
5 Information management 58
Summary 59
Reading 8: SWOT analysis 60
Introduction 60
1 Strengths, weaknesses, opportunities and threats 60
2 Conducting a SWOT analysis 62
Summary 67
References 68
Reading 9: Organisational structure 69
Introduction 69
1 Types of organisational structure 70
2 The importance of structure 71
3 Formal and informal structures 74
4 Dimensions of structure 75
5 Virtual organisations 77
Summary 79
References 80
Reading 10: Organisational culture 81
Introduction 81
1 Definitions of culture 82
2 Elements and types of organisational culture 84
3 Informal elements of culture and subcultures 87
4 Factors influencing organisational culture 89
Summary 91
References 92
Reading 11: Values and beliefs 93
Introduction 93
1 What are values? 93
2 Different value types 94
Summary 97
References 98
Acknowledgements 99
