Business Management Unit 1

What is the definition of a business?

A business provides goods and services to satisfy consumer needs and wants.

What distinguishes profit and non-profit businesses?

Profit businesses aim for financial gain, while non-profit organizations focus on social goals.

What are the four inputs in a business?

Land, labor, capital, and enterprise.

What are outputs in a business context?

Goods (tangible products) and services (intangible offerings).

What does value added mean in business?

Businesses create value by making products more desirable than raw materials.

What is the Primary sector in business?

Extraction of natural resources, such as farming and fishing.

What does the Secondary sector involve?

Manufacturing and construction activities.

What is the focus of the Tertiary sector?

Providing services such as retail, banking, and healthcare.

What does the Quaternary sector refer to?

Knowledge-based services, such as IT and research and development.

What external factors are analyzed in STEEPLE analysis?

Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.

What characterizes the Private Sector?

Owned by individuals or shareholders.

What defines the Public Sector?

Government-controlled organizations.

What defines a Sole Trader?

One person who owns and runs the business.

What is a Partnership?

A business owned by two or more people sharing ownership.

What is a Private Limited Company (Ltd)?

A company whose shares are privately owned.

What is a Public Limited Company (PLC)?

A company whose shares are traded on stock exchanges.

What are Cooperatives?

Businesses that are owned and run by their members.

What is the focus of Non-Profit Organizations?

Social causes, rather than profit.

What do Social Enterprises aim for?

Social good while also making profits.

What is Profit Maximization?

The goal to maximize revenue over costs.

What is meant by Business Growth?

Expanding operations, market share, or sales.

What is the importance of Survival for a business?

It's crucial for startups and during crises.

What does Market Share refer to?

Increasing the percentage of total industry sales held by a business.

What is Customer Satisfaction in business?

Providing high-quality goods and services.

What does Employee Well-being refer to?

Ensuring job satisfaction and fair treatment of employees.

What does Sustainability mean in business?

Long-term environmental and financial viability.

What is the SMART objectives framework?

Specific, Measurable, Achievable, Relevant, Time-bound objectives.

Who are internal stakeholders in a business?

Owners, managers, and employees.

What do Customers expect from businesses?

Quality, fair prices, and good service.

Who are External Stakeholders?

Stakeholders outside the business such as customers, suppliers, and the government.

What is Stakeholder Conflict?

When different stakeholders have conflicting interests.

What is Internal (Organic) Growth?

Expansion from within, such as opening new stores.

What is External (Inorganic) Growth?

Growth through mergers, acquisitions, or joint ventures.

What are Economies of Scale?

Cost savings as a business grows due to efficiencies.

What are Diseconomies of Scale?

Rising costs due to overgrowth leading to issues like communication problems.

What are characteristics of Small Businesses?

More flexibility, lower costs, and personal customer service.

What advantages do Large Businesses have?

Financial stability, brand recognition, and innovation potential.

Why do businesses become Multinational?

To reach more customers and benefit from lower costs.

What are some positive impacts of MNCs?

Job creation, technology transfer, and economic growth.

What are some negative impacts of MNCs?

Exploitation of workers and environmental damage.

What is Globalization in the context of MNCs?

Easier trade, increased competition, and CSR pressures.

What is SWOT Analysis?

A tool to evaluate Strengths, Weaknesses, Opportunities, and Threats.

What does STEEPLE Analysis evaluate?

Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.

What is a Decision Tree?

A visual tool for evaluating different decision-making paths.

What is Force Field Analysis used for?

Identifying driving vs. restraining forces for change.

What are Gantt Charts used for?

Project planning and scheduling.

What is the role of Human Resource Management (HRM)?

To manage an organization's workforce to maximize productivity and employee satisfaction.

What is Workforce Planning?

Analyzing future staffing needs based on business objectives.

What is the HR Cycle?

The stages of an employee's life in the organization including recruitment, onboarding, training, performance management, retention, and separation.