1.1 Introduction to business management Flashcards Preview

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Flashcards in 1.1 Introduction to business management Deck (23)
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1
Q

What is the role of businesses?

A

produce goods and services for people

2
Q

What are the main functions of a business?

A

human resources
finance and accounts
marketing
operations

3
Q

Human resources

A

responsible for managing the personnel of the organisation.
→ deals with workforce planning, recruitment, training, appraisal, dismissals and redundancies and outsourcing human resource strategies.

4
Q

Finance and accounts

A

manage the organisation’s money.
→ ensure accurate recording and reporting of financial documentation
→ comply with legal requirements and inform those interested in the business’ financial position

5
Q

Marketing

A

identify and satisfy the needs and wants of customers
→ ensure that the firm’s products sell
→ market research, test marketing, advertising and branding.
→ functions include the four Ps:
→ product: ensure that goods and services meet the customers’ requirements
→ price: use various pricing strategies to sell the products of a business
→ place: ensure that goods and services are available in convenient places for customers
→ promotion: make sure that the customers know about the firm’s products

6
Q

Operations management (production)

A

the process of converting raw material and components into finished goods, ready for sale and delivery to customers.

7
Q

Business sectors

A

primary sector
secondary sector
tertiary sector
quaternary sector

8
Q

Primary sector

A

involved with the cultivation or extraction of natural resources
e.g. farming, mining, quarrying

9
Q

Secondary sector

A

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

10
Q

Tertiary sector

A

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

11
Q

Quaternary sector

A

a subcategory of the tertiary sector, where businesses deal with the intellectual, knowledge-based activities that generate and share information

12
Q

Sectoral change

A

a shift in the relative share of national output and employment that is attributed to each business sector over time

13
Q

Reasons for sectoral change

A

higher household incomes
more leisure time
greater focus on customer services
increasing reliance on support services

14
Q

Factors of production

A

the four types of inputs or resources necessary for the production process
land - natural resources
labour - the physical and mental efforts of people
capital - non-natural resoures
entrepreneurship - management, organisation and planning of other factors

15
Q

Entrepreneur

A

an individual who plans, organises and manages a business, taking on financial risks in doing so

16
Q

Intrapreneur

A

an entrepreneur but as an employee within a large organisation

17
Q

Reasons for starting up a business

A
growth 
earnings
transference and inheritance
challenge
autonomy
security
hobbies
18
Q

Process of starting up a business

A
  1. write a business plan
  2. obtain start-up capital
  3. obtain business registration
  4. open a business bank account
  5. marketing
19
Q

What are some factors to consider when setting up a business

A
business idea
finance
human resources
enterprise
fixed assets
suppliers
customers
marketing
legal issues
20
Q

What are some problems a new business might face?

A
lack of finance
cash flow problems
marketing problems
unestablished customer base
people management problems
legalities
production problems
high production costs
poor location 
external influences
21
Q

What is a ‘business plan’?

A

a report detailing how a business sets out to achieve its goals and objectives. It is a useful planning tool as it requires the owner(s) to consider the marketing, financial and human resources of the business.

22
Q

Why is a business plan needed?

A

helps to reassure financial lenders (banks, venture capitalists) that the entrepreneur has researched the idea.
→ used to assess both opportunities and risks that may be reflected in a business plan.
→ can also be used by other stakeholders such as shareholders to assess the potential gains from investment.

23
Q

Contents of a business plan

A
the business
the product 
the market 
the finance
the personnel
the marketing