Tutorial Letter
7 areas of Business Management • general management: examination of management process as a whole • marketing management: marketing of business • financial management: acquisition and control of money • production and operations management: physical production of products • purchasing management: acquisition of assets machinery products etc. • human resources management: employment, management, training of staff public relations management: create a favourable image of business •
Business world: a system of individuals & business organisations that produce products/ services to meet people’s needs.
Four elements: • Human activities • Transformation • Exchange • profit
Role of business in society • Social responsibility (employment, equity, empowerment, limiting malpractice) • Business ethics • Affirmative action or equity • Environmental protection • Consumerism (consumer protection)
Market (South Africa) Main characteristic Markets Driving force Management Factors or production privately owned. Freedom of choice. Free competition. Profit. Individual reward. Private businesses and management. Freedom of decision.
Socialism Basic industries state owned. Freedom of choice. Limited competition. Profit. State-owned and private enterprises. In state-owned, decisions restricted to government policy. Freedom to choose jobs and employers. Limited right to strike. Freedom of choice, except for products produced by state.
Command All state owned. No competition. No profit. All for the state. State = management environment. No freedom of decision.
Labour Consumers
Freedom to choose jobs and employers. Freedom to strike. Freedom of choice. Spending limited by income.
Limited choice of jobs. Unions are state controlled. Rationing of product. Limited choice. Prices of products and income levels set by state. State concentrates resources towards particular ends. Low productivity. Low standard of living. Planning difficult / impossible.
Advantages
Business world: a system of individuals & business organisations that produce products/ services to meet people’s needs.
Four elements: • Human activities • Transformation • Exchange • profit
Role of business in society • Social responsibility (employment, equity, empowerment, limiting malpractice) • Business ethics • Affirmative action or equity • Environmental protection • Consumerism (consumer protection)
Market (South Africa) Main characteristic Markets Driving force Management Factors or production privately owned. Freedom of choice. Free competition. Profit. Individual reward. Private businesses and management. Freedom of decision.
Socialism Basic industries state owned. Freedom of choice. Limited competition. Profit. State-owned and private enterprises. In state-owned, decisions restricted to government policy. Freedom to choose jobs and employers. Limited right to strike. Freedom of choice, except for products produced by state.
Command All state owned. No competition. No profit. All for the state. State = management environment. No freedom of decision.
Labour Consumers
Freedom to choose jobs and employers. Freedom to strike. Freedom of choice. Spending limited by income.
Limited choice of jobs. Unions are state controlled. Rationing of product. Limited choice. Prices of products and income levels set by state. State concentrates resources towards particular ends. Low productivity. Low standard of living. Planning difficult / impossible.
Advantages