 A business is usually defined as a commercial enterprise

 Some are run by only one person who carry out all of the
required functions
 Others employ thousands of people and provide goods
and services to people all over the world
 Each business can be defined or described by its type of
ownership, the goods produced or services offered,
the types of jobs provided, or the functions
it performs in a community
 Businesses are started by entrepreneurs who see a need,
recognize the opportunity, and go into business to meet
that need
 Business and people need each other – there are many
stakeholders – we depend on businesses for products and
services, but also for employment
 Buy inputs – raw materials, labour, machinery and
equipment, and land
 Produce outputs – goods and services
 Focus on efficient use of resources
 Generate profit/surplus
 Who are the stakeholders? – Anyone who has
an interest in the success of a business
• Customers
• Managers
• Employees
• Owners
• Local Community/Environment
• Suppliers
• Government
• Creditors
Take Inputs Process/Manufacture Output

Costs – Fixed and Variable Revenue

Profit
 A group of businesses that all produce
similar products is called an industry
Example: Automobile manufacturers and
automobile parts is the Automobile Industry
 Separated into three categories – primary,
secondary, and tertiary
 • Those involved in the first stage of
development of products
• Harvest natural resources that are later

Primary used to manufacture products

• Mining, fishing, agriculture, forestry,
and oil and gas extraction are all primary
Industry industries
• Large amounts of money is needed for
research, equipment and machinery
• Automation reduces the need for labour
 • Manufacture raw materials into finished
products
• Gold and silver ores are refined and made into
jewellery
Secondary • Crude oil is refined into machine oil, gasoline,
and plastics
Industry • Wheat is milled into flour and baked into
breads and cookies
• Technology innovations has led to
automation with computer assisted design
• Production is increasing using fewer workers
 • Provide services to consumers and other
businesses
• Often involves selling or using products
produced by secondary industries
Tertiary • Tertiary industries are rapidly expanding
creating job opportunities in service occupations
Industry • Due to advances in technology (including
electronics, communications, and computer
science and aerospace), an aging population,
busy consumers with less free time, and
consumer demand for higher quality services
 Marketing

External Objectives
and
Factors Strategy

Internal
and
External
Influences

Accounting Human
and Finance Resources

Production
and
Operations
Management
 Market Analysis
• Market Size
• Market Segments
Marketing
Marketing Strategy
Objectives
External
and • Objectives of Business
Factors
Strategy • Niche versus Mass Marketing
Internal • Marketing Portfolio
and
External
Influences Market Research
Accounting Human • Primary and Secondary
and Finance Resources

Production
The Marketing Mix
and
Operations • Price
Management
• Place
• Promotion
• Product
 Legal Structure
• Sole Proprietor
Objectives • Partnership
• Corporation
and Strategy
Business Objectives
Human
Marketing
Resources • Mission Statements
Internal
• Starting Business
and
External
Influences
Stakeholders
Production • Customers
External and
Factors Operations • Suppliers
Management
• Employees
Accounting
• Communities
and Finance
SWOT Analysis
• Strengths, Weaknesses, Opportunities,
and Threats
 Management Structure
Human and Organizational Design
Resources • Top Managers, Middle
Objectives Production Managers, Front Line Managers
and
and
Strategy
Operations
Management
• Operatives
Internal
and
External
Leadership and
Influences
Management Styles
Accounting
Marketing and Finance • Autocratic, Democratic,
Laissez-Faire
External
Factors
Management by
Objectives (MBO)
 Motivation
Human
Resources
Objectives
and
Production
and Recruitment and
Operations
Strategy Management
Training of Employees
Internal
and
External
Influences

Marketing
Accounting
and Finance
Workforce Planning
External
Factors

Communication
 Production and Efficiency and
Operations
Management
Effectiveness
Human
Resources
Accounting
and Finance
• Stock and Quality Control
• Capacity Utilization
Internal
and
External
Influences

Objectives
Production Methods
External
and
Factors
Strategy

Marketing Economies and

Diseconomies of Scale
 Profit and Loss
Accounting and
Finance
Production
and
Operations
External
Factors
Break Even Point
Managemen
t
Internal
and
External
Influences
Balance Sheet
Human
Marketing
Resources

Objectives
Budgeting
and
Strategy

Revenue
 Market Structure
External • Perfect Competition
Factors • Monopoly
• Imperfect Competition
Accounting
Marketing
and Finance • Oligopoly
Internal
and
The Macro-Economy
External
Influences • Business Cycles
Production Objectives • Government Objectives and Policies
and
Operations and
Management Strategy The Legal Environment (The Law)
Human
Resources Social Responsibility

Business Ethics