UGBS 101 Introduction to Business Administration Session 2 – Definitions and Concepts Lecturer: Dr. Daniel Quaye, UGBS Contact Information: danquaye@ug.edu.gh Dr. Daniel Quaye, UGBS

Session overview The course provides a basic understanding of the concepts and definitions of business. It gives a general understanding of the management issues in business as well as the types of business one can proceed into. Dr. Daniel Quaye, UGBS

What is Business? A business is an organized, profit-seeking activity that provides goods and services designed to satisfy customers’ needs (Bovee, Thill and Mescon 2010). A business is any organization that strives for profits by providing goods and services that meet customer needs (Fry, Stoner and Hattwick 1998). Dr. Daniel Quaye, UGBS

The objective of Business To make a profit. Business is a way of life. Business provides opportunities for gaining other forms of satisfaction. Dr. Daniel Quaye, UGBS

Historical development of Business in Ghana Business in Pre-colonial Ghana. Business in Post-colonial Ghana Business in Modern Ghana Dr. Daniel Quaye, UGBS

Goods Producing Businesses vrs. Service Businesses Characteristics of Goods Producing Businesses Goods producing businesses produce tangible goods by engaging in activities such as manufacturing, construction, mining and agriculture. It is difficult to start a goods-producing business without substantial investment in building, machinery and equipment. Goods-producing businesses are capital-intensive Dr. Daniel Quaye, UGBS

Service A service is defined as an intangible product, performance of which mainly requires human effort or work. Examples include, banking, health care and restaurants. Dr. Richard Boateng, UGBS

Characteristic of Services Services are intangible. Service performance (delivery) and consumption are inseparable.  Services are perishable  Performing services is highly labour-intensive. Services tend to be heterogeneous. Services are performed rather than produced. Dr. Richard Boateng, UGBS

The Economic and Social roles of Businesses It is impossible to evaluate the overall contributions and importance of businesses. The simple reason for this being that their contributions vary. Some contributions that stand out though include; Dr. Richard Boateng, UGBS

Cont. They provide jobs They introduce new products They inject a considerable of money into the economy They add greatly to the rich variety of goods and services available to consumers Contribute to society’s values and stability Are a rich source of new ideas and innovations in products and services, Dr. Richard Boateng, UGBS

Reading materials Introduction of Business Administration Distance Education Manual- Dr Daniel Quaye. Madura, Jeff (2007), Introduction to Business Administration, South-Western College Dr. Richard Boateng, UGBS