SUBJECT: INTRODUCTORY ENTREPRENEURSHIP

LEVEL: N4

MODULE 1 : THE BUSINESS WORLD

 MODULE 1: THE BUSINESS WORLD
After you have completed this module, you should be able to:
• Explain the term business management with reference to:
• Competent management
• Functional management
• The free market system
• Explain the concept of needs with reference to;
• The kinds of needs
• Satisfying needs
• The goods and services that satisfy needs
• Consumer goods
• Industrial goods
• services

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 2 DPA/jm

 MODULE 1: THE BUSINESS WORLD

• Name, identify and brief describe the factors that make production possible:
• Describe how the factor of production interact.
• Classify, name and describe the activities that satisfy needs –
• Primary.
• Secondary.
• Tertiary.
• Services.

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 3 DPA/jm

 MODULE 1: THE BUSINESS WORLD
Contents
Unit 1.1: the field of business management
Unit 1.2: needs
Unit 1.3: the factors of production
Summary of module 1
Summative assessment for module 1

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 4 DPA/jm

 MODULE 1: THE BUSINESS WORLD

The field of business management

Business management deals with the management of the whole business. It refers to how
managers run a business on a daily basis to ensure that its reaches its objectives and goals.
competent management
Managers need many basic skills to be competent. Managers must be able to
• Plan.
• Organise.
• Lead (or direct).
• Control.
• Choose staff.

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 5 DPA/jm

 MODULE 1: THE BUSINESS WORLD
Functional management
larger business use a functional management system. All departments have their own
managers, according to their functions.

Chief executive officer(CEO)

Marketing Financial Production Human resources

manager manager manager manager

The free market system

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 6 DPA/jm

 MODULE 1: THE BUSINESS WORLD

Unit 1.2: Needs

Needs are the forces that motivate people to act in order to satisfy them. In business, needs are
the key driving forces behind the motivation to buy products and services.

Kinds of needs
All people have needs that must be satisfied. Maslow’s hierarchy of needs explain them best.

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 7 DPA/jm

 MODULE 1: THE BUSINESS WORLD

Self –
actualisationrefers to
self - fulfilment

Psychological needs
Esteem needsrefers to the
need to berecognisedand
valued.

Belongingness and love needsevery

individual needs friends and to have
relationship with others

Safety needsrefer to aspects such as security

Basic needs
and protection and the need to feel secure

Physiological needsinclude things like food, water, clothes

and sleep.
TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 8 DPA/jm
 MODULE 1: THE BUSINESS WORLD

Satisfying needs
People must work to earn money to satisfy the basic needs before
Summary of consumer goods, industrial goods and services.
Consumer goods Industrial goods Services
• Tangible in nature • Tangible in nature Intangible in nature
• Ready for immediate • Used in the manufacturing Produced and consumed at
consumption of other goods – not ready the same time.
• Final products. for consumption. Cannot be stored.
• Categories • Not final product, but used Cannot be transferred
Shopping goods to manufacture final
Speciality goods products.
Convenience goods • e.g machinery and raw
materials.
TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 9 DPA/jm
 MODULE 1: THE BUSINESS WORLD

Interaction between the factor of production

The four production factors must be combined to produce goods and service

You need The entrepreneur,

You need employees to
You will need who is willing to
money to start help in the
wood to start. take the risk,
the business manufacturing
The land yields needs to combine
and to buy process and in
this natural all the factor. This
machinery. the business.
resource. is
This is capital This is a entrepreneurship.
labour.
TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 10 DPA/jm
 MODULE 1: THE BUSINESS WORLD

classifying activities that satisfy needs

Business generally fall into three sector namely, a primary, secondary and tertiary sector. These
can be summarized as follows
Sector Industry Examples
Primary sector Minerals gold, diamond, copper and
Involves the extraction, cultivation, Forestry iron and ore mining wood
processing and harvesting of natural Fishing cutting.
resources. Agriculture Fresh water and deep sea
fishing
Producing fruit, vegetables
and milk.

TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 11 DPA/jm

 MODULE 1: THE BUSINESS WORLD
Sector Industry Examples
Secondary Manufacturing Manufacturing furniture
Involves processing and Processing and cars
manufacturing to Construction Processing grains into
transform the raw breakfast cereals and
materials into finished grapes into wine.
products. Building houses and other
buildings.
Tertiary sector Trade Trade and shopkeepers.
Involves the transfer of
goods from supplier to
final consumer.
Services Services. Providing banking and
Involves the provision of education services, as well
services. as the personal services of
dentists, doctors and
lawyers.
TSC-0-06-6992-2020-R00 Introductory Communication N4 2020-05-11 Page 12 DPA/jm