IB Business Management

Businesses

Exist to provide/satisfy the consumer’s with their wants or needs (goods or services) in order to gain profit

Goods

A physical product

Services

• Intangible products

• Inseperable ( cannot seperate from the staff who deliver the service )

• Perishable ( consumed at the time of purchase )

• Variable ( services are heterogeneous - unique per costumer )

Needs

Required for basic survival

Economic problem

People have infinite wants but not enough resources

4 Basic resources ( Factors of production )

• Land ( natural resources )

• Labour ( human interactions / element )

• Capital ( man-made products )

• Entrepreneurship ( person who is willing to take risks in order to gain profit ) / they create profits, jobs, innovation and boosts economy

Key business factors

• Human resource management

• Finance

• Marketing

• Operations management

Human resource management

• Manages staffing, recruitment, training and compensation

• Ensures employee morale, motivation and talent retention

• Employer and employee relationship

Finance

• Manages spending (fincancial statements and expesnses)

• Money and budgeting

• Sufficient working capital

Marketing

• Identifies target audience and their needs

• Conducts market research, pricing and promotion

• Sells at what location and to who

Operations management

• Handles the production, delivery of goods and amount

• Focuses on the efficiency and quality