1.1 Introduction to business management

Business plan

The document that sets out the business ideas, its goals and objectives and other details of how the business will operate

Businesses

Organisations involved in the production of goods and/or the provision of services

Consumers

The people or organisations who actually use a product

Customers

The people or organisations that buy the products

Entrepreneurs

Owners or operators of an organisation who manage, organise and plan the other three factors of productions. They are risk takers who exploit business opportunities in return for profits

Intrapreneurship

The act of behaving as an entrepreneur but as an employee within a large organisation.

Needs

The basic necessities that a person must have to survive

Primary sector

Businesses involved in the cultivation or extraction of natural resources

Product

Refers to both goods and services. Goods are physical products and services are intangible products

Quaternary sector

A subcategory of the tertiary sector, where businesses are involved in intellectual, knowledge-based activities that generate and share information

Secondary sector

The section of the economy where business activity is concerned with the construction and manufacturing of products

Sectoral change

A shift in the relative share of GDP and employment that is attributed to each business sector

Tertiary sector

The section of the economy where business activity is concerned with the provision of services to customers

Wants

People's desires, i.e. the things they would like to have