An Introduction to Business Studies

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An Introduction to Business Studies

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Contact Information

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Session 1 WHAT IS A BUSINESS?

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What is a Business?
Business is such an integral part of our lives that we do not normally stop to think about it. It is hard to define for the very reason that there is so much of it around us, in all sorts of different shapes and sizes

Book 1
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What a Business Does?
Businesses come in all shapes and sizes, but have three factors in common: 1. people 2. objectives 3. Structure It is the interaction of people to achieve objectives that forms the basis of a business and some form of structure is needed. Book 1

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Types of Business

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Morgan’s Metaphors
1. 2. 3. 4. 5. 6. 7. 8. Machine Organism Brain Culture Political System Psychic Prison Flux and Transformation Vehicle for Domination

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Session 2

THE EXTERNAL ENVIRONMENT

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The STEEP Model
The external environments can be defined and analyzed using the STEEP model which stands for: v v v v v

Sociological Technological Economic Environmental Political
Book 1

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Sociological Factors
It includes: v Demographic changes in the age & structure of populations v Patterns of work v Gender roles v Patterns of consumption v Ways in which the culture of a population or country and develops. Book 1

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Technological Factors
Information and Communications Technology (ICT) influences the scale & rate of change by: v lowering the barriers of time and place
(Increase competitions)

v creates new industries
(e-commerce, insurance, banking)

v many organizations become ICT dependent
(Production planners, credit controllers, sales people)

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Economic Factors
The economic environment is extremely influenced by the following important factors: ü ü ü ü ü ü

Interest rates Inflation Energy prices Exchange rates Aspects of business life. Currency

Book 1

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Environmental Factors
The Environmental affecting businesses: v Legislation
(Emphasis on pollution control and waste disposal)

v Information
(regular environmental audits, annual reports)

v Employees
(Good communication, listening opinion, reporting back on regular basis)

v Shareholders v Pressure groups
(lowered level of salt and fat in foods)

v Customers
(High Environmental Standard)
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Book 1

Political Factors
The Political factors affecting businesses: v Legislation
(Health, safety at work, equal opportunities and employee protection)

v Trading relationships
(World Trading Organization, European Union)

v Government as a major party to many transactions
(Defense, medicines and some social services)

v Level and nature of public services
(Health services, education and police force)

v Taxation level
(Individual, Property and goods) Book 1
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Stakeholders
Stakeholders are people, or groups, who have a legitimate interest in the activities of businesses and other organizations in their society.

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