1.1 Introduction to Business Manaee♀ent
The role of businesses in co♀binine hu♀an, physical and fnancial resources to create eoods and
services
Business Inputs:
Land- site for buildings and raw materials
Capital- the fnance needed to set up a business and pay for its contnuing operatonss as
well as all of the man-made resources used in productonn ngn fnances factoriess ofcess
machines
nterprise/entrepreneurship- the driving force of businesss provided by risk-taking
individualss which combines the other factors of producton into a unit that is capable of
producing goods and servicesn
Labour- Make up the workforce of the businessn Can be skilleds unskilleds temporary or
permanentn
Also needs: government (schoolss law and orders roadss rails and airports)s customers and
suppliersn
The Main Business Functions and their roles
1n Human resources- people in the companyn Hirings trainings fring employeesn
2n Finance and accounts- fnance the companys paying shareholders
3n Marketng- market researchs product designs advertses forecast sales
4n Operatons management- efciency of producton
Pri♀ary, Secondary , Tertiary and Quaternary sectors
Primary- extractng natural resources and raw materials
Secondary- the manufacturing and processing of raw materials
Tertary- services
Quaternary- hi- tech
I♀pact of Sectorial chanee on business activityy
Benefts of an increase in secondary sector actvity (industrialisaton):
GDP increasess so living standards increase
An increased output results in lower imports and higher exports
More jobs are created
Firms pay more tax to the government
Value is added to the county's output of raw materials
Problems:
Increases in jobs in manufacturing causes rural-urban migratons leading to housing and
social problems
The skills of workers may decrease with more employees
Raw materials needed which increase import costs
Polluton adds to the environmental problems
Benefts of an increase in tertary sector actvity (deindustrialisaton):
Cheaper labour for developed countries who use the labour from countries where the
secondary sector actvity is increasingn
The role of businesses in co♀binine hu♀an, physical and fnancial resources to create eoods and
services
Business Inputs:
Land- site for buildings and raw materials
Capital- the fnance needed to set up a business and pay for its contnuing operatonss as
well as all of the man-made resources used in productonn ngn fnances factoriess ofcess
machines
nterprise/entrepreneurship- the driving force of businesss provided by risk-taking
individualss which combines the other factors of producton into a unit that is capable of
producing goods and servicesn
Labour- Make up the workforce of the businessn Can be skilleds unskilleds temporary or
permanentn
Also needs: government (schoolss law and orders roadss rails and airports)s customers and
suppliersn
The Main Business Functions and their roles
1n Human resources- people in the companyn Hirings trainings fring employeesn
2n Finance and accounts- fnance the companys paying shareholders
3n Marketng- market researchs product designs advertses forecast sales
4n Operatons management- efciency of producton
Pri♀ary, Secondary , Tertiary and Quaternary sectors
Primary- extractng natural resources and raw materials
Secondary- the manufacturing and processing of raw materials
Tertary- services
Quaternary- hi- tech
I♀pact of Sectorial chanee on business activityy
Benefts of an increase in secondary sector actvity (industrialisaton):
GDP increasess so living standards increase
An increased output results in lower imports and higher exports
More jobs are created
Firms pay more tax to the government
Value is added to the county's output of raw materials
Problems:
Increases in jobs in manufacturing causes rural-urban migratons leading to housing and
social problems
The skills of workers may decrease with more employees
Raw materials needed which increase import costs
Polluton adds to the environmental problems
Benefts of an increase in tertary sector actvity (deindustrialisaton):
Cheaper labour for developed countries who use the labour from countries where the
secondary sector actvity is increasingn
