Unit 1: Introduction to Business

Business

A system of interconnected parts that work together to produce goods and services to meet human needs.

System

A set of interconnected parts that work together to achieve a purpose, consisting of inputs, processes, outputs, and feedback.

Inputs

Resources needed to create a product, including physical, financial, and human resources.

Processes

The methods businesses use to combine inputs to produce products, influenced by various factors such as product type and employee skills.

Outputs

The final goods and/or services produced by a business.

Feedback

Information from outputs that can be used to improve processes, including negative and positive feedback loops.

Doughnut Economics Model

A framework for understanding human needs and planetary health, aiming to meet needs while respecting ecological boundaries.

Sustainability

Meeting present needs without compromising future generations, considering impacts on people, planet, and profit.

Human Resources Management

Ensures the business employs the right number of skilled employees and treats them ethically.

Finance and Accounts

Manages the funds necessary for business operations and growth.

Marketing

The process of selling the right product at the right price to the right customers.

Operations

The core activities of a business, including planning production quantities and methods.

Primary Sector

The extraction or production of raw materials from the earth, such as agriculture and mining.

Secondary Sector

Manufacturing and processing raw materials into finished products.

Tertiary Sector

Businesses that provide services rather than goods, such as retail and healthcare.

Quaternary Sector

Services focused on knowledge, including information technology and research.

SWOT Analysis

A tool for analyzing internal strengths and weaknesses, and external opportunities and threats.

STEEPLE Analysis

A framework for considering sociocultural, technological, economic, environmental, political, legal, and ethical factors affecting a business.

Private Sector

Businesses owned and controlled by private individuals or groups, focused on profit generation.

Public Sector

Government-owned entities that provide essential services to the public, funded by taxes.

Sole Trader

An individual who owns and operates a business alone, with unlimited liability.

Partnership

A business owned by two or more individuals, sharing profits and responsibilities.

Limited Liability

A legal structure where owners are not personally liable for business debts beyond their investment.

Social Enterprises

Businesses that prioritize social and environmental goals alongside profit.

Corporate Social Responsibility (CSR)

A business model that incorporates ethical practices and social responsibility into operations.

Stakeholder

Any individual or group that affects or is affected by an organization, classified as internal or external.

Multinational Companies (MNCs)

Companies that operate in multiple countries, impacting local economies and communities.

Internal Growth

Expansion carried out by a business using its own resources, such as hiring or opening new locations.

External Growth

Expansion through partnerships, mergers, or acquisitions with other organizations.