Intro to Business Management 1.1-1.4

Business

An organization engaged in commercial, industrial, or professional activities that can be for-profit or non-profit.

Goal of Business

To meet the needs and wants of consumers by combining human, physical, and financial resources to create goods and services.

Factors of Production

Resources used in the production of goods and services: land, labor, capital, and enterprise.

Inputs

Resources used for production, including land, labor, capital, and enterprise.

Outputs

Goods or services produced by a business.

Capital Goods

Plant and equipment used to produce consumer goods, not sold but essential for business operations.

Consumer Goods

Goods purchased by consumers for personal use.

Labor-Intensive Business

A business that relies heavily on labor compared to other production inputs.

Capital-Intensive Business

A business that relies more on capital than labor for production.

Tertiary Sector

Involves personal and commercial services, e.g., shops and banks.

Quaternary Sector

Includes specialist technology businesses and knowledge industries, e.g., e-commerce.

Vertical Growth

Refers to acquiring businesses involved in earlier or later stages of the production chain.

Horizontal Growth

Refers to a business acquiring or merging with another business engaged in similar activities.

Sectoral Change

The trend for the percentage of a workforce in agriculture to decline as the secondary and tertiary sectors grow.

Urbanization

The movement of people from rural areas to cities, often paralleling economic development.

Purchasers vs. Consumers

Purchasers are customers of products, while consumers are those who enjoy products.

Human Resources (HR)

Department managing people in an organization, including recruitment and training.

Finance

Managing financial operations of an organization, including accounting.

Marketing

Identifying and satisfying consumer needs and wants, through product promotion.

Operations Management

Management of resources for the efficient production of goods and services at required quality.