Business Management Week One

Business Management

What Is Business?

 any kind of organization or action that creates goods or provides services. While this is usually undertaken with making a profit as the main goal, though this isn’t always the case.

For-Profit

businesses focus on earning a profit.

Non-Profit

organizations, on the other hand, are more goal-oriented. They are concerned with communities or members

Factors of Production

a business needs four resources: land (or other natural resources), labor, capital, and entrepreneurship.

Functional Areas

different activities that need to be done to maintain the business. These include management, operations, marketing, accounting, and finance.

Management

ensures employees are on task and that each employee is being leveraged in the way that makes the business most efficient

Operations

watches over production and ensures quality of product.

Accounting

keeps track of the money currently coming in and the money currently being spent

Finance

 plans for future expenses and income.

Stakeholders

individuals who have a vested interest in a company

Internal stakeholders

include employees, managers, and owners. These individuals are vested in the company because they directly depend on it for income.

External stakeholders

include customers, shareholders, creditors, suppliers, and others. These people have a legitimate interest in the company for various reasons and can all be affected by actions the business takes.

External Forces

A business is not just influenced by itself—everything in the world around it can impact a business. A business may create a fun new toy, but if the economy is suffering and consumers aren’t buying a lot of things they do not need, the business most likely won’t succeed. Business can be affected by the economy, consumer trends, government regulations, and many other things.

Marketing

brings in customers, both by making the business look appealing to customer and by taking customer feedback and improving the business.