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Introduction To Business Management

The document discusses the key inputs in a business including capital, land, labor, and entrepreneurship. It also outlines the main business functions of human resources, finance, marketing, and operations. Additionally, it describes the four main economic sectors of primary, secondary, tertiary, and quaternary industries and how economic structures change from one sector to another through industrialization and development. Finally, it provides an overview of entrepreneurship versus intrapreneurship and common steps involved in starting a new business.

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931 views4 pages

Introduction To Business Management

The document discusses the key inputs in a business including capital, land, labor, and entrepreneurship. It also outlines the main business functions of human resources, finance, marketing, and operations. Additionally, it describes the four main economic sectors of primary, secondary, tertiary, and quaternary industries and how economic structures change from one sector to another through industrialization and development. Finally, it provides an overview of entrepreneurship versus intrapreneurship and common steps involved in starting a new business.

Uploaded by

Taha Backup
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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 Dtryhdrtyh6drtyhed546Main inputs in a business

 Capital
 Amount of money needed to run a business
 Man-made goods like machines, buildings, vehicles, and equipment needed for
business to operate
 Investment – increasing spending on capital
 Land
 Space where a business operates
 Raw materials and natural resources that are used in making a product
 Labor/manpower
 Physical & mental efforts of people to produce products/services
 Enterprise/entrepreneurship
 Management, organization, and planning of other three factors of production
 Actions of entrepreneur who shows initiative and takes risks to set up, invest, and
run a business
 Main business functions and their roles
 Human resources
 Manages the workforce and laborers of the company
 Deals with recruitment, wages, communication, and motivation of employees
 Finance and accounts
 In charge of managing the organization’s money and assets
 Ensures accurate recording and reporting of financial documentation (to comply
with legal requirements)
 Marketing
 Ensure that a company’s products sell
 Concerned with identifying and satisfying consumers’ needs/wants
 In charge of promotions, advertisements, etc.
 Operations
 In charge of business functions and processes that produce the actual goods
 Concerned with research & development, delivery, stock management, etc.
 Business sectors (or economic sectors)
 Primary
 Involves the harvesting of naturally available resources
 e.g. mining, agriculture, livestock, drilling, and logging
 Regulated and protected by the government
 Fuels (produces inputs for) the other economic sectors
 Example countries: Vietnam, Philippines, Canada, Dubai
 Example companies: Philex Mining, Del Monte, Dole
 Secondary
 Involves manufacturing of raw products to finished or component goods
 Finished goods – exported or sold to domestic consumers
 Component goods – sold to companies in the tertiary sector
 Example countries: China, Scotland, Japan, Italy, USA
 Example companies: Coca-Cola, Honda, Del Monte
 Tertiary
 Involved with service and retail
 Includes retail sales, transportation, entertainment, restaurants, media, healthcare,
banking, etc.
 Exploited in developing countries
 Philippines is a victim of brain drain: where professionals go abroad to look for
jobs making it difficult for companies in the tertiary sector to find the employees
they need
 Relies on the primary and secondary sector for inputs
 Example countries: USA, United Kingdom, Singapore, Hong Kong
 Example companies: JP Morgan, Convergys, Lotte
 Quaternary
 Involves intellectual activities or innovation services
 Includes government, education, libraries, scientific research, information
technology, etc.

 Impact of sectoral change


 Change in economic structure (primary to secondary, secondary to tertiary, etc.)
 Industrialization
 When a country moves towards the manufacturing sector as its principal output
and employment (primary to secondary)
 Products become more refined and have more export potential
 Raises the standard of education
 Opens better job opportunities
 Developed nation
 Exploits the tertiary sector as the national output of employment
 Further raises the standard of education
 Examples of effects of shifting to the tertiary sector
 For a labor intensive manufacturer of aluminum cans
 Quality of products improve
 More distributors
 Less employees and higher wages for employees
 Can consider turning to robots and machines, as well as outsourcing
 For the owner of a small seaside bed and breakfast
 Easier to find competent employees
 More income due to higher demand
 More competition
 People would rather work for bigger companies
 Can consider expanding
 For a family-owned vegetable farm
 More demand due to more stores
 Opportunity for a “dampa” system
 Less laborers
 Can consider opening a small business or outsource
 Entrepreneurship (and the entrepreneur) vs. intrapreneurship (and the intrapreneur)
 Entrepreneurship is the process of starting a business, company, or organization
 The Entrepreneur
 The founder, and usually owner
 Big risk, big reward
 Organizes inputs of production into goods and services (outputs)
 Obtains money, buys the inputs needed and makes decisions.
 Takes risks and provides the vision for the business idea
 Assumes large financial risk
 Provides sufficient resources
 Intrapreneurship is similar to entrepreneurship but is done in an existing organization
 The Intrapreneur
 Is an employee of the organization
 Uses resources of company to undertake projects and therefore risks very little
 Rewarded in the form of a paycheck
 Does not act autonomously like an entrepreneur as he is dependent on other
employees or the organization he works for
 Reasons for starting up a business or an enterprise
 Profit – positive difference between revenues and costs
 Fame
 Benefit human welfare
 Very fulfilling
 Family
 Legacy
 Common steps in starting up a business and problems new ones may face
 Businesses often start up by looking for market opportunities (market gaps or niches)
 Niche markets are where small businesses can easily compete
 Factors to consider: What questions would businessmen ask about the factors?
 Business idea
 4 business inputs (capital, land, labor, and enterprise)
 Four departments/functional areas
 Possible problems faced by a start-up (either internal or external)
 Internal
 No land to establish a business
 Product may not appeal to your location
 Lack of manpower
 External
 Terrorists
 Politics or government
 National Calamities
 Limited resources
 Business plan
 Report detailing aims and objectives of a business
 Planning tool that serves as a blueprint to address the issues of a startup business
 Meant for investors/banks to help them decide on whether to invest/approve loans
 Elements of a business plan
 Business – name of the business, type of the business, statement of aims and
objectives, details of the owner
 Product – details of goods/services, operations and equipment needed, suppliers,
price
 Market – who you’re selling to, market profile, competition (strengths and
weaknesses)
 Finance – money, start-up costs
 Personnel – employees and workforce, skills
 Marketing – marketing mix employed by business

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