Chapter 1

Introduction to Bussiness

Asst. Prof. Vasin Chaooprayoon, PhD.

[email protected]
 What is business?

◆ It is an economic system
exchanging goods and services
for other things or money based
on perceived value.
◆ All types of businesses require
some form of investment and
have enough customers to buy
products and generate consistent
profits for entrepreneurs.

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 What is business? (Cont.)

◆A business is an organisation that

prepares goods and services to sell
to those who want or need them.
◆Most people think a business career
is a job in a large company with
business wealth.

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 What is business? (Cont.)

◆ Many business-related professions exist in small businesses,

non-profit organisations, government agencies, and
educational institutions.

A business degree is
optional to take up
jobs in these
positions.

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 What is business? (Cont.)

▪ Every sector of the

economy needs
people with solid
skills who can apply
these skills to
different business
careers.
▪ There are many
career fields
available in the field
of business.
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 What is business? (Cont.)

Line of business examples:

◆ Accounting
◆ Administrative management
◆ Business management
◆ Finance
◆ Human resources
◆ Information systems
◆ Insurance
◆ Marketing
◆ Operations management
◆ Public relations
◆ Purchasing/merchandising
◆ Retail management
◆ Sales
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 What is Data?
Data is facts or observations that are
discrete and, disorganised and
unprocessed. Therefore, it has no
meaning or value due to a lack of
context and interpretation.

Data is sensory stimuli we perceive

through our senses, including the
reading of sensations or senses of
light, sounds, smells, tastes, and
touches.

Data is symbols. We can record,

capture, and store the data. Data is
essential for words (text and
speech), numbers, diagrams, and
images (stills/or videos).

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What is Information?

◆ Information is a
stimulus that is
meaningful in some
context for the
audience.

◆ When entering and

storing information on
a computer, we call it
"Data".
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 What is Information? (Cont.)

◆ After processing (e.g.

formatting and printing), the
result is information.

◆ When packaged or used to

understand or do something,
it is called "Knowledge".

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 What is Information? (Cont.)

◆ Information is "organised or structured

data, which proceeded into information
related to a specific purpose or context.
Therefore, information is meaningful,
valuable, useful, and relevant."
◆ Information is "data that changes us."
◆ Information is "the sum of all the facts
and concepts that someone can perceive
at a given moment."

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 What is knowledge?
◆ Knowledge is a fluid combination of experiences, values,
and contextual information. It provides an environment
and conceptual framework for evaluating and
incorporating new experiences and information.
◆ Knowledge is formed and
applied in the minds of
knowers.
◆ On-premise Knowledge is not
only embedded in document
and storage form. Nevertheless,
it is still part of the
organisation's routines,
processes, practices, and
norms.
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 What is Wisdom?

◆ Why is
◆ Who do
◆ Appreciation of why
◆ Ability to create
effectiveness
◆ Adds Value

Wisdom is the quality of experience,

knowledge, and potential judgment. It is
favourable. It is the correct use of knowledge.

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 What is Wisdom? (Cont.)
◆ If we ignore knowledge, we cannot form intelligence or
wisdom at all.

◆ Because wisdom must come from understanding the

principles or essence of knowledge, scholarly language is
called "Understanding of Principles", an activity within the
mind that we must create ourselves.

◆ The German philosopher Goethe defined wisdom succinctly

but clearly: "Wisdom is found only in truth." It means that
knowledge may be abundant.

◆ However, wisdom must be knowledge proven to be "true", like

the Buddha's doctrines. If the Buddhists do not prove the
doctrines with their wisdom, which is called enlightenment, a
valuable Dhamma may be just knowledge in a textbook
waiting for people to read.
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 DIKW Pyramid

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 What is process?

A process is "a set of logic (reasonableness) of

related transactions, a set of conversions of
inputs into output" (Andersen, 1999).

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 What is system?

◆A system is a group of interdependent items

interacting with each other in everyday operations.
◆A system is a procedure established or provided.
◆A system is a method.
◆Sample:
◼ One computer system consists of hardware and software
for operating the entire computer.
◼ One information system consists of data collection and
storage functions.

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 Business Processes

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 What is business process?

◆ Business processes or methods depend on structured

activities or tasks to produce products or services according
to customer needs.

◆ A business process is a Flowchart showing the algorithm of

business activities.

◆ A business process is a structured and measurable set of

activities designed to deliver specific customer or market
results.

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 Business Process Flowchart Example

Gamepads & Controllers

Gaming Mouse
Gaming Keyboard
Gaming Mouse &
Keyboard Suite
Gaming Headphones
Gaming Mouse Pad
Gaming Chair

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 What is business process? (Cont.)

◆ Most business processes are cross-functional.

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 Business Process Areas
◆ Primary Processes or Core Processes:
◼ They compose the main activities of the business. These include
marketing, sales, production, distribution, and customer service.
Those in this category are some of the most structured processes in
the organisation.

◆ Support Processes:
◼ They are hidden processes behind the Primary Processes that
customers cannot see but are essential for effective business
management.

(Rummler & Brache 1995)

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 Business processes emphasise how the organisation
works, with the product itself secondary.

A business process is a
sequence of activities
across time and space,
clearly defining starting
and ending points,
including inputs and
outputs.

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Business processes adopt customer
perspective utilisation.

The process is a structure to create

valuable customer deliverables.

(Davenport 1993)

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▪ Business processes start with
customer needs and end with
needs meeting.

▪ The process removes barriers in

the organisation and eliminates
problems in each part.

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 Business processes can be classified into
several subprocesses, each with its
characteristics but still contributing to
achieving the goals of significant processes.

Business process analysis usually includes

mapping extensive processes and sub-
processes to the activity level.

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 ◆ Business processes add value to customers.
◆ Business processes are the processes that cut out
unnecessary activities.
◆ Process outcomes are greater efficiency (generating value
for customers) and effectiveness (cost reduction).
◆ There are various methods and techniques to develop a
business process model.
◆ Business process modelling symbols are drawing
techniques to illustrate business processes in a workflow
format.

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Business
Workflow
Example:
Plant Outage

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Business
Workflow
Example: FA
Cup live
broadcast
between
Manchester
City and
Watford at
Wembley
Stadium

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 Types of Business Processes

1. Management Processes:

◼ It is the process of controlling the system's

operation.
◼ The management process consists of:
◼ Corporate Governance

◼ Strategic Management

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 ประเภทของกระบวนการทางธุรกิจ (ต่อ)

2. Operational Processes:
◼ This process is the core business process and creates a
core value stream.
◼ Operating processes include Purchasing, Manufacturing,

Marketing and Sales.

3. Supporting Processes:
▪ This process supports core processes, including:
accounting, recruitment, and technical support processes.

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 Corporate Governance

Corporate Governance
▪ It is a good management principle in which the company appoints a
committee to govern the management operations effectively.
▪ Corporate governance is relevant to everyone in the organisation. In
order to apply this corporate governance principle, everyone in the
organisation should be informed and aware of the corporate
governance principles that are necessary and important and accept
the implementation of corporate governance.
▪ The application of good corporate governance principles must know
the core of this principle: the companies should disclose transparent
and fair use of information. The companies should disclose
transparently and fairly for all parties to know to build credibility,
trust and confidence, resulting in the company's progress and
perpetuity.

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 Corporate Governance (Cont.)

Corporate Governance Principles (40 principles)

1) Company committees must not the company’s partners.

2) Company committees should not be the company’s
customers.
3) Company committees should not be relatives.
4) The Board of Committees structure should come from a
representative of shareholders or an independent
committee that will supervise the management. Those
representatives should know the industry.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

5) The company committees should study the information

before attending the meeting and follow the news inside
and outside the company to vote logically.
6) The company committees should monitor the work of the
management.
7) The company committees must work impartially.
8) The company committees are not representatives of the
management.
9) Disclosure of information must be transparent and
straightforward.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

10) When information changes, the companies should disclose

it to all units, and the information disclosed must be
transparent.
11) The heart of financial disclosure is transparency, fairness,
and accountability, which lead to the reliability of the
companies.
12) Disclose information to company employees.
13) Manage risks effectively and disclose the risk information
to all parties with transparency, open-mindedness and
listening to the opinions of all parties.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

14) Changes in accounting figures should reveal accurate

information. Do not conceal or distort information to
mislead others.
15) The executive and management should not use their power
for their benefit.
16) Executives should manage budgets carefully and
transparently.
17) Business operations should disclose transparent
information to all parties.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

18) There must be multiple channels for the best interests of

shareholders and for clarity and timeliness.
19) Provide opportunities for investors and financial
institutions to visit the business to know the information.
20) Provide updated information to ensure that the company
discloses information fairly and transparently.
21) Dedicate time to exercise rights to shareholders to seek
information or prepare for exercising shareholders' rights
to attend the meeting.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

22) Provide sufficient information to shareholders.

23) Seek other channels for shareholders to exercise their
rights, such as by telephone or Internet, to exercise their
rights fully.
24) Communication channels are effective.
25) Fairness to minority shareholders.
26) Protect and protect customers' interests to ensure fairness
and accountability to customers.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

27) Provide remuneration appropriate to the duties of the

Company committees.
28) The company committees must respond when in doubt and
protect the interests of everyone.
29) An independent committee with expertise in such matters
must be appointed.
30) Give importance and treat all customers equally.
31) Keep promises by fulfilling the promises and disclosing
information to the partner companies contacting.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

32) Reward employees based on their competence.

33) Employees must know various information about corporate
governance principles to contribute to the company's
growth.
34) Employees should be able to meet with customers to boost
sales or inquire customers about their service needs.
35) Provide all parties with equal and fair access to information
in order to build confidence in the Company and also result
in the Company's credibility.

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 Corporate Governance (Cont.)

Corporate Governance Principles (Cont.)

36) Do not seek benefits from business partners or competitors.
37) Set product and service prices fairly.
38) Provide information to the customer correctly, truthfully,
and without distortion.
39) Protect the environment because it will demonstrate the
company's responsibility—the protection is an approach to
avoid causing environmental and societal problems.
40) Some information is essential, and it is still time to
announce it, so it is vital to keep that information to
prevent damage to the business.

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 Corporate Governance (Cont.)

Corporate Governance principles are open, transparent and fair.

These principles will lead the companies to reach the following:
▪ Credibility for the company
▪ Investor confidence
▪ Sustainable returns for shareholders
▪ It is easy to find investment sources because financial institutions trust
companies with good corporate governance principles.
▪ Industry sectors, as well as the public, recognise the company
▪ Sustainable success for businesses
▪ Affecting business alliances with other companies.
▪ The companies consider the benefits of investors, society, local vendors,
customers, and related parties. As a result, society and the community
accept the companies.

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 Business Environment

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 What is business environment?

◆Business Environment is a significant direct and

indirect factor influencing the success or failure of
a company’s performance.
◆The business environment is classified into two
aspects:
1) External Environment (a factor the business organisation
cannot manage, control, maintain, edit, or modify).
2) Internal Environment (a factor that a company can
manage internally)

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 Global Business Environment

◆ A global business environment can be defined as an

environment in each country. It is an external factor
affecting the environment within an organisation,
influencing decisions about resources and capacity
utilisation.
◆ It includes the social, political, economic, regulation, cultural
tax law, and technological environment.
(ICFAI 2009)

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 Global Business Environment (Cont.)

Political Environment:
Enactment of laws and government rules and
regulations of all countries initiate a practice as follows:
◼ Every country in the world follows their legal system.
◼ Foreign companies operating in that country must
comply with that country's legal system.

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 Global Business Environment (Cont.)
Economic Environment:
It is related to all factors that contribute to the
attractiveness of foreign investors.

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 Global Business Environment (Cont.)

Technological Environment:
◆It consists of factors related to materials and
machinery used to produce goods and services.
◆Consumers' openness to new technologies and
acceptance of new technologies influence the
decisions within organisations.

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 Global Business Environment (Cont.)

◆ Since the company cannot control the external

environment, its success depends on how well it adapts
to the external environment, its ability to design and
adapt internal variables to take advantage of external
opportunities, and the ability to control threats posed by
the same climate determine success.

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 bibliography

◆ Wheelen, T. L. & Hunger, J. D. (2012). Strategic management and business

policy: Toward global sustainability. 13th ed. Boston: Pearson.

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 Q&A

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