Chapter 1: Environments
Introduction to business management
• Sales = revenue
• Stakeholder = impacted by company, community, suppliers
• Shareholder = owns a share in company
Factors of production
• Human Resources = People contributing skills and labor
• Informational resources = Data, knowledge, and technology
• Financial resources = Money, investments, and capital used for
• Material resources = Physical substances and raw materials used in production, such as
wood, metals, and plastics
• Economic activities
Business environment
• PESTLE
o Political
o Economic
o Social
o Technological
o Legal
o Environmental
Objective/role of business
• To satisfy needs of clients
Business profit
• Businesses generate income in return for good and services
Classification of Businesses
• Manufacturing enterprise
o Produce a variety of materials
o Delivers a physical service
• Services enterprise
o Provides an intangible service
Circular economy
• Implies that what we buy/sell must be used over and over again
• To eliminate waste.
• Cultivating sustainable lifestyles.
• Implies what we buy/sell is re-used
• Goes far beyond just recycling
1
,Chapter 2: Ethics and social responsibility
• Ethics and social responsibility = Study of right and wrong and morality of choices individuals
make
• Business ethics = application of moral standards in business situations
4 general ethical issues
1. Fairness & Honesty
o No Deception, Misrepresentations Demand Transparency
2. Organizational Relations
o The interests of the organization are more important than those of the individual
3. Conflicts of interest
o A person that benefits out of a situation for personal gain
4. Communication
o No false, misunderstood messages
How organizations influence ethical conduct
• Leading by example. • Making the right decision.
• Offering ethics training programs. • The feeling test.
• Establishing a formal code of ethics. • The newspaper or social media test
Unethical behaviour
• False claims regarding products • Harassment
• Unethical accounting • Bribery
• Poor working conditions
Social Responsibility
Economic model
• Social responsibility is not the company's primary responsibility
• Society benefits from the need satisfaction
Focus on
• Utilization of natural resources • Management's interests
• Gains
Socio- Economic Model
• Businesses focus on the impact of decisions on society
• Company should take initiative
Focus on
• Quality of life
• Both business and community interest
• Conservation
2
, Risk
• Risks = uncertainty, as well as other factors outside of one's control, which may impact the
business
Loadshedding
1. Impact on communities
o Hospitals, clinics & Healthcare
▪ Surgical blockages
▪ Equipment destruction
o Households
▪ Risk to devices
▪ Extra cost to Energy
▪ Extra cost to house appliances that breaks
o Education & Schools
▪ Schools are poorly lit
▪ Online attendance is impacted
o Mental Health
o Psychological Stress
o Less Production – less healthy
2. Impact on businesses
o Production
▪ Impact on irrigation
▪ Bakeries, wine & Vaccines
o Retail
▪ High Diesel cost
▪ Damage to equipment
o Profits
▪ High Diesel Costs
▪ Loss of production
3. Impact on economy
o Decline in economy
o Food security threatened
o Increasing cost of capital
Climate change
Types of climate action:
• Adaption
o Addresses minimising climate change’s impacts
• Mitigation
o Address the causes climate change
• Loss & Damages
o Irreversible impacts of climate change
• Climate & Carbon Finance
o Set a financial value to the Carbon emissions
3
Introduction to business management
• Sales = revenue
• Stakeholder = impacted by company, community, suppliers
• Shareholder = owns a share in company
Factors of production
• Human Resources = People contributing skills and labor
• Informational resources = Data, knowledge, and technology
• Financial resources = Money, investments, and capital used for
• Material resources = Physical substances and raw materials used in production, such as
wood, metals, and plastics
• Economic activities
Business environment
• PESTLE
o Political
o Economic
o Social
o Technological
o Legal
o Environmental
Objective/role of business
• To satisfy needs of clients
Business profit
• Businesses generate income in return for good and services
Classification of Businesses
• Manufacturing enterprise
o Produce a variety of materials
o Delivers a physical service
• Services enterprise
o Provides an intangible service
Circular economy
• Implies that what we buy/sell must be used over and over again
• To eliminate waste.
• Cultivating sustainable lifestyles.
• Implies what we buy/sell is re-used
• Goes far beyond just recycling
1
,Chapter 2: Ethics and social responsibility
• Ethics and social responsibility = Study of right and wrong and morality of choices individuals
make
• Business ethics = application of moral standards in business situations
4 general ethical issues
1. Fairness & Honesty
o No Deception, Misrepresentations Demand Transparency
2. Organizational Relations
o The interests of the organization are more important than those of the individual
3. Conflicts of interest
o A person that benefits out of a situation for personal gain
4. Communication
o No false, misunderstood messages
How organizations influence ethical conduct
• Leading by example. • Making the right decision.
• Offering ethics training programs. • The feeling test.
• Establishing a formal code of ethics. • The newspaper or social media test
Unethical behaviour
• False claims regarding products • Harassment
• Unethical accounting • Bribery
• Poor working conditions
Social Responsibility
Economic model
• Social responsibility is not the company's primary responsibility
• Society benefits from the need satisfaction
Focus on
• Utilization of natural resources • Management's interests
• Gains
Socio- Economic Model
• Businesses focus on the impact of decisions on society
• Company should take initiative
Focus on
• Quality of life
• Both business and community interest
• Conservation
2
, Risk
• Risks = uncertainty, as well as other factors outside of one's control, which may impact the
business
Loadshedding
1. Impact on communities
o Hospitals, clinics & Healthcare
▪ Surgical blockages
▪ Equipment destruction
o Households
▪ Risk to devices
▪ Extra cost to Energy
▪ Extra cost to house appliances that breaks
o Education & Schools
▪ Schools are poorly lit
▪ Online attendance is impacted
o Mental Health
o Psychological Stress
o Less Production – less healthy
2. Impact on businesses
o Production
▪ Impact on irrigation
▪ Bakeries, wine & Vaccines
o Retail
▪ High Diesel cost
▪ Damage to equipment
o Profits
▪ High Diesel Costs
▪ Loss of production
3. Impact on economy
o Decline in economy
o Food security threatened
o Increasing cost of capital
Climate change
Types of climate action:
• Adaption
o Addresses minimising climate change’s impacts
• Mitigation
o Address the causes climate change
• Loss & Damages
o Irreversible impacts of climate change
• Climate & Carbon Finance
o Set a financial value to the Carbon emissions
3
