Business Organization and Environment
Business Revision
Topic 1 – Business Organisation and Environment * What is business activity?
Inputs – Land, Labour, Capital & Enterprise
Outputs – Goods or Service & Waste.
Processes – Research and development, Production, Marketing, Finance, Administration, Human Resources.
* Functions * Production – the changing of natural resources into a product or service. * Marketing – IT is to do with identifying consumer needs and pleasing them. Eg: Pricing, advertising, promotion, packaging, etc. * Finance – they are in control of the money in a business. They must record transactions, produce documents to show the success/failure of the business (performance) and to control the flow of money in and out of the business. * Administration – deal with enquiries and communicating messages for the workers. * Human Resources – they are there to look after the workers and ensure that they hire qualified people, they train the new employees, ensure the workers are in good health and their workplace is safe, equal opportunities between the workers, payment systems, etc. * Research and development – are expensive so not that many businesses have them. They find out research to do with the new product/service. Those businesses that don’t have this department trust their competitors and adapt their products according to the trend.
* Sectors * Primary – this is the extraction or growing of natural resources from the earth i.e. Fishing, farming, mining, forestry, etc. * Secondary – this is the manufacturing of products from natural resources i.e. Baking, car production, construction, etc. * Tertiary – this is the sector of services i.e. Hairdresser, dentist, doctor, travel agent, etc. * Public – mad from organisations that are either owned or controlled by the government. * Private – this is a business started by an individual or a group of individuals
* Starting a business
Topic 1 – Business Organisation and Environment * What is business activity?
Inputs – Land, Labour, Capital & Enterprise
Outputs – Goods or Service & Waste.
Processes – Research and development, Production, Marketing, Finance, Administration, Human Resources.
* Functions * Production – the changing of natural resources into a product or service. * Marketing – IT is to do with identifying consumer needs and pleasing them. Eg: Pricing, advertising, promotion, packaging, etc. * Finance – they are in control of the money in a business. They must record transactions, produce documents to show the success/failure of the business (performance) and to control the flow of money in and out of the business. * Administration – deal with enquiries and communicating messages for the workers. * Human Resources – they are there to look after the workers and ensure that they hire qualified people, they train the new employees, ensure the workers are in good health and their workplace is safe, equal opportunities between the workers, payment systems, etc. * Research and development – are expensive so not that many businesses have them. They find out research to do with the new product/service. Those businesses that don’t have this department trust their competitors and adapt their products according to the trend.
* Sectors * Primary – this is the extraction or growing of natural resources from the earth i.e. Fishing, farming, mining, forestry, etc. * Secondary – this is the manufacturing of products from natural resources i.e. Baking, car production, construction, etc. * Tertiary – this is the sector of services i.e. Hairdresser, dentist, doctor, travel agent, etc. * Public – mad from organisations that are either owned or controlled by the government. * Private – this is a business started by an individual or a group of individuals
* Starting a business