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Introduction To Business - 5

The document provides an introduction to business operation skills and key concepts. It discusses the meaning of organizations and different types of organizations. It then covers why businesses exist, including to overcome individual limitations and enable specialization. The document also defines key business terms like vision, mission, goals, and stakeholders. It provides examples of different types of organizations and industries. Finally, it gives examples of visions from companies like Google, Microsoft, Facebook, and Amazon.

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Md. Rayhanul Islam
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52 views11 pages

Introduction To Business - 5

The document provides an introduction to business operation skills and key concepts. It discusses the meaning of organizations and different types of organizations. It then covers why businesses exist, including to overcome individual limitations and enable specialization. The document also defines key business terms like vision, mission, goals, and stakeholders. It provides examples of different types of organizations and industries. Finally, it gives examples of visions from companies like Google, Microsoft, Facebook, and Amazon.

Uploaded by

Md. Rayhanul Islam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BUSINESS OPERATION SKILLS- KIM

104 Session 01:Introduction to Business


Presented by Muhammad Mahbub Alam FCA
Learning Objectives from this session

After the session the learners will be able to

¨ identify the meaning of Organization and its types


¨ identify the reasons why businesses exist
¨ identify the meaning of Business and its objectives
¨ identify who the stakeholders are in an individual business
¨  understand the business’s vision, mission, goals of a business
¨ identify the managements and their Power, authority, responsibility, accountability and
delegationof
¨ able to know about management ,types of manager and management functions
¨ able to know The Business Model and also enhance knowledge on different Business Model
¨ Able to know about different management theories and its application in business
What is Organization?
Organization: A social arrangement for the controlled performance of
collective goals which has a boundary separating it from its environment.

There are many different types of organization in both the not-for-profit and business
sectors.Here are some examples of organizations, categorized as to whether they
are profit-oriented or not-for-profit.

¨ A multinational car manufacturer (e.g. Ford)


¨ An accountancy firm (e.g. KPMG)
¨ A charity (e.g. UNICEF)
¨ A trade union
¨ A local authority
¨ An army
¨ A club
Why do organization Exist?

¨ Overcome people's individual limitations, whether physical or


intellectual
¨ Enable people to specialize in what they do best
¨ Save time, because people can work together or do two aspects of a different
task at the same time
¨ Accumulate and share knowledge (e.g. about how best to build cars)
¨ Enable people to pool their expertise
¨ Enable synergy; the combined output of two or more individuals working
together exceeds their individual output ('None of us is as smart as all of us').
In brief, organizations enable people to be more productive.
 
How do organizations differ?
Factors Example
Private sector: owned by private investors/shareholders
Ownership (public vs private) Public Sector: Owned by the nation and managed by the government

Control By the owners themselves, by people working on their behalf, or


indirectly by government-sponsored regulators
Activity (i.e. what they do) Manufacturing, healthcare, services (and so on)
Profit or non-profit orientation Business exists to make a profit. An army or a charity, on the other
Size Small local business to multinational corporation
Legal status Company, or an unincorporated body such as a club, association,
Sources of finance Borrowing, government funding, share issues
Technology High use of technology (e.g. computer firms) v low use (e.g. corner shop)
Differences in what organizations do ?
Industry Activity
Agriculture Producing and processing food

Manufacturing Acquiring raw materials and, by the application of labour and technology, turning them
into a product (e.g. a car)

Extractive/raw materials Extracting and refining raw materials (e.g. mining)

Energy Converting one resource (e.g. coal) into another (e.g. electricity)

Retailing/distribution Delivering goods to the end consumer

Intellectual production Producing intellectual property e.g. software, publishing, films, music etc

Service industries These include banking, various business services (e.g. accountancy,
advertising) and public services such as education and medicine
Introduction to Business
 Business: A business is an organization which aims to maximize its owner’s wealth and it can
be regarded as an entity separate from its owner.

 A business is defined as an organization or enterprising entity engaged in commercial,


industrial, or professional activities.

 The term business also refers to the organized efforts and activities of individuals to produce
and sell goods and services for profit. Businesses range in scale from a sole proprietorship to an
international corporation. 

 Business’s Objective: Every business has a hierarchy of objectives :


 
Primary Objective: Secondary Objective:
Profit/Wealth Maximization, Market Position,
Profit Satisficing, Product Development,
Revenue Maximization Technology,
Employee and Management.
Social Responsibility
Stake Holder of Business
 Stake Holder: A stakeholder is a person who has some kind of interest or stake in the business.

Primary Stake Holders : Share holders/Partners/Proprietors

Directors, Managers, Employee, Trade Union,


Secondary Stakeholders :
Customers, Suppliers, and others BP, Lenders, Government and its agencies,
The local community The public at large and The natural environment.
Business’s Vision, Mission and Goals
Vision

Mission

Goals

Non-operational Operational
/Qualitative Goals /Quantitative Goals

Aims Objectives

SMART
Vision
A vision is a vivid mental image of what you want your business to be at some point in the
future, based on your goals and aspirations. Having a vision will give your business a clear
focus, and can stop you heading in the wrong direction.

Vision Statement is a statement of what is possible, the picture of the future you want to create.
Example of Vision

Google's corporate vision is “to provide access to the world's information in one


click.”

Microsoft (at its founding): A computer on every desk and in every home.

Facebook: Connect with friends and the world around you on Facebook.

LinkedIn: Connect the world's professionals to make them more productive and
successful.

Amazon: Our vision is to be earth's most customer-centric company; to build a


place where people can come to find and discover anything they might want to buy
online.

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