TOPIC 2 PART 1

Flashcards for reviewing key vocabulary from the MGT1211 Introduction to Business Studies lecture notes.

Business Environment

The actors and forces outside that affect management’s ability to develop and maintain successful relationships with its target customers.

Business Environment

Factors and forces that affect a firm’s ability to build and maintain successful customer relationships.

Micro Environment

The immediate environment including suppliers, customers, competitors, and stakeholders.

Macro Environment

Often outside of the organization’s control, of a larger scale, and usually of an economic and industry viewpoint.

Micro-environment

Has a direct impact on routine business activities and is associated with business at a small-scale.

Macro-environment

Related to an organization's general and external environment, impacting working style, decision-making, strategy, and performance.

Profit Organization

Any business entity aimed to generate profit from regular operations to maximize owners' wealth.

Profit Organization

Strive continuously for minimizing expenses and maximizing income to increase profit for business growth and expansion.

Non-profit Organisation

Primary purpose is to promote public good rather than making profit.

Non-profit Organisation

Aimed at endorsing a social cause or supporting a particular outlook.

Primary Industry

Industries that extract raw materials directly from the earth or sea.

Secondary Industry

Industries that process and manufacture products from raw materials.

Tertiary Industry

Industries that provide a service.

Primary Industry

Economic activities depend on the environment and revolve around the usage of natural resources.

Major economic activities of primary industry

Harvesting, hunting, fisheries, pastoral activities, mining, agriculture, extraction, and afforestation

Secondary Industry

Engaged in construction and manufacturing.

Secondary Industry

Utilizes the products from the primary industry to create several other utility products and also engage in their sales and export.

Examples of secondary industry

Plastic industry, the food industry, home appliances industry, the textile and leather industry.

Light Industry

Requires a relatively smaller quantity of raw materials, lesser power and smaller area.

Examples of light industry

Manufacturing of food, beverages, home and personal products, electronics and clothing.

Heavy industry

Involves several characteristics as heavy and large products.

Examples of heavy industry

Petroleum processing, manufacturing of machinery, ships etc.

Tertiary Industry

Majorly consists of the service sector.

Activities of tertiary industry

Expertise and knowledge for improving productivity, potential, performance and sustainability.

Characteristic of tertiary industry

Production of several nature services that include advice, care, experiences, access and discussions.

Professional services

Specialised professional licenses just like that of the auditors, architects, lawyers, engineers and doctors.

Telecommunications

A sector that deals with the transmission of signs, signals, words, messages, sounds, images or intelligence of any kind through cables, radio, electromagnetic internet and television systems.

Franchises

The practice of offering the right to use a specific business model and a specific brand for a certain interval of time.

Public health

Refers to the specialised professional area that concentrates on preventing diseases and helps in prolonging lives and promote human health through several informed decisions and organised efforts.

Micro Environment Forces

Forces specific to a business that influence daily operations and performance for a shorter period.

Macro Environment Factors

External factors an organization can’t control, impacting working style and decision-making.

Primary Mission of Non-Profit

To provide services needed by society.

Primary Mission of For-Profit

To make a profit for shareholders.

Revenue Sources of Non-Profit

Contributions, grants, membership dues, program revenue.

Revenue Sources of For-Profit

Sales of products or services, investment income.

Workforce of Non-Profit

A mix of paid staff and volunteers.

Workforce of For-Profit

Paid employees.

Accountability of Non-Profit

Accountable to the public; must file annual information returns.

Accountability of For-Profit

Accountable to its shareholders; must file annual tax returns.

Tax Status of Non-Profit

Exempt from income taxes if 501(c)(3).

Tax Status of For-Profit

Corporation (owners) subject to income taxes.

Secondary mission of Non-profit

To ensure there is a surplus so the nonprofit can continue its mission.

Secondary mission of For-profit

To provide goods and services in a way that sustains the company.

People engaged in working in the primary industry

Red-collar workers

Secondary Industry Energy Requirement

Requires a large level of energy as many factories and machines are needed to accomplish the works in the secondary industry.

Heavy Industry

Requires more capital industry as compared to light industry and depends more on the work and investment.

Tertiary Industry Focus

The focus of this industry is more to interact with a lot of people and focus on customer service even more than the transformation of the different kinds of physical goods.

Tertiary Industry services

The services may also involve the distribution, transport and sales of goods from the production company to the consumers via different channels.

Tertiary industry activities

Activities; expertise and knowledge for improving productivity, potential, performance and sustainability

Red-collar workers

The people engaged in working in the primary industry are generally referred to as