HBM1 - 14 Introduction To Business Management
HBM1 - 14 Introduction To Business Management
HBM1 - 14 Introduction To Business Management
BUSINESS MANAGEMENT
FUNDAMENTALS
Some initial thoughts…
What is a Business?
“A business is defined as an organization or
enterprising entity engaged in commercial,
industrial, or professional activities. Businesses
can be for-profit entities or non-profit
organizations that operate to fulfil a charitable
mission or further a social cause.” (Freeman, et.
al., 2019)
Produce or
offer Receive
product compensatio
Identify the
and/or
needs and n for
services that
wants of
aim to products
consumers and/or
satisfy the
needs and services
wants
So what do people need? Maslow’s
Hierarchy of needs
Factors of Production
Land
Anythingthat is taken from nature and used to produce
goods or services
Includes actual land, water, fish, corn, bamboo, trees, etc.
Broken into Renewable and Fixed resources
Capital
Has 2 different meanings
“…monetary resources companies use to purchase natural
resource, land and other capital goods.”
“…major physical assets individuals and companies use
when producing goods or services.”
Can obtain capital through buying, renting, and developing.
Factors of Production
Labour
The human resource that is employed to facilitate the
production process.
The combination of physical and mental resources applied
to tasks.
Highly manageable and able to control
Entrepreneurship
A managerial function that integrates all the factors of
production in the attainment of a goal.
Itis a facilitation action that cannot itself be converted
into goods.
A fundamental aspect of business.
Management
“Management is the creative and systematic
pursuit of practical results, (including the
result of more knowledge), by identifying
and using available human and knowledge
resources in a concerted and reinforcing
way.” (Koi-Akrofi, 2018)