Functions of Business & Economic Resources. Functions of Business What goes on behind the scenes?

Slides:



Advertisements
Similar presentations
What is a Business?.
Advertisements

WHAT IS AN ECONOMY?.
Objective: Understand the six activities/functions that are critical to operating a business.
Higher Business Management Course Outline and Assessment.
What Is Business?.. What is Business Continued… Business is the production of goods and services Business is the production of goods and services Producers.
Economics.
Return to Our Essential Question(s)…..
Unit 2 – Finance Topic 1 - Accounting
BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT.
Introduction to Business Unit II: Business Ownership and Environments.
Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 1 : Business Activity (1) Lecturer: Zhu Wenzhong.
Introduction to Business
Marketing is All Around Us
Lim Sei cK. A: Cost of losing a job? B: Cost of starting a business? C: Cost of employing staff? D: Cost of something given up?
Introduction to operations Management ABI301 Management Science (2)
Categories of Industry Unit 6. Categories of Industry Primary sector ▫Extractive industries Secondary sector ▫Manufacturing and construction Tertiary.
BUSINESS ENTERPRISES.
Fundamentals of Accounting. What is Accounting? There are five main activities: –Gathering financial information about a business. –Preparing and collecting.
Functional Areas within Business
Understand the purpose and the functions of business Purpose and Functions of Business.
Understand the purpose and the functions of business Purpose and Functions of Business.
One of the main aims of a business is to make a profit. However all business activity costs money. Business costs include: Raw materials and components.
Section 2.1 Economic Resources “Think about the resources you use every day. Consider which resources are limited and which are not.”
External Environment.
Objective 1.01 Understand the purpose and the functions of business 1.01 Purpose and Functions of Business.
1.1 Nature of Business.  What is a Business? Any organization that uses resources to produce a good or service.  What is added-value? Changing or altering.
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Marketing Is All Around Us Chapter 1.1. The Reality…  You have been marketed to since you were very young.  You probably know a lot about marketing.
Introduction to Business Intro to Supply and DemandBBI2O.
CORNERSTONES of Managerial Accounting, 5e © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part,
Company LOGO Economics. Objective #1- Market Systems I.Economics -Study of production, distribution, and consumption of goods and services. - In other.
Economics Satisfying Our Needs and Wants. Scarcity Goods and services are scarce because we cannot produce enough of them to satisfy everyone’s wants.
Goal 7 Introduction to Economics. What is Economics? Economics: the study of how people seek to satisfy their needs and wants by making choices Economics:
Objective 1.01 Understand the purpose and the functions of business
MARKETING TODAY AND TOMORROW
1.1 Nature of Business Activity. Functions of Business Marketing Finance Human Resource Management Operations Management Relationships between them.
4 Factors of Production Project. 4 Factors of Production The four factors of production are the ingredients or elements needed to make a product or provide.
Intro To Business.  Formal – an organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purpose.
Objective 1.01 Understand the purpose and the functions of business Purpose and Functions of Business.
Introduction to Business Intro to Supply and DemandBBI2O.
Resources.
ECONOMIC BASICS.
 Ventures require many different types of resources in order to be successful and to grow.  Some resources such as furniture, equipment, raw materials,
Marketing Is All Around Us Chapter 1.1. The Reality…  You have been marketed to since you were very young.  You probably know a lot about marketing.
The Purpose of Business. Purpose of Business Businesses fulfill the needs and wants of the consumers by selling goods or services or both. Businesses.
Chapter 2 Economic Resources and Systems Section 2.1 Economic Resources.
Lesson 2 Functions of Business Unit 1. Although we come into contact with business regularly, we often do not think about what goes on behind the scenes.
FUNCTIONAL AREAS. ORGANISATION FUNCTIONS  There are usually many different functional areas that make up an organisation. These functions are also known.
Understand the purpose and the functions of business Purpose and Functions of Business.
Objective 1.01: Understand the purpose and the functions of business 1.01 Purpose and Functions of Business.
Economics: Part 1.
1.1 Nature of Business Activity
IB Business & Management
Objective 1.01 Understand the purpose and the functions of business
(Factors of Production)
Objective 1.01 Understand the purpose and the functions of business
Economic Resources BBI2O.
Understand the purpose and the functions of business
Objective 1.01 Understand the purpose and the functions of business
Objective 1.01 Understand the purpose and the functions of business
Business and Management: 1.1 Nature of Business Activity
Business Organization
Journal About… Last class, you presented your “You on You” campaign. Based on that experience, take a few minutes to journal about the question below:
Objective 1.01 Understand the purpose and the functions of business
Economic Resources and Systems
Objective 1.01 Understand the purpose and the functions of business
Understand the purpose and the functions of business
Why businesses exist and common business objectives
Objective 1.01 Understand the purpose and the functions of business
Needs, wants & Business Mr. Singh BBI2O.
Presentation transcript:

Functions of Business & Economic Resources

Functions of Business What goes on behind the scenes?

Functions of Business Main Functions of Business Production Production Marketing Marketing Finance Finance Human Resources Human Resources Management Management Additional important function for some businesses and secondary for others: 1. Research and Development (R&D)

1. Production Process of converting a business’s resources into goods and services. Different types of resources are necessary and may vary depending on the type of business. Examples: 1. Law cutting business would take its workers, tools, equipment and business money and use them to cut the lawns of its customers 2. A doctor’s office will have different equipment from an auto mechanic’s shop or a gas station or restaurant.

Factors of Production/ Economic Resources  Resources which make products and services available to consumers. 1. Natural or Land Resources 2. Human or Labour Resources 3. Capital Resources 4. Information 5. Entrepreneurship

Natural Resources Materials that come from the earth, water, and air.

Natural Resources Most natural resources are non- renewable and are limited, or they may take decades to replenish. Most natural resources are non- renewable and are limited, or they may take decades to replenish. What does this mean for business? What does this mean for consumers? What does this mean for society?

Human Resources/Labour The people who work to create, deliver, service, and sell the goods and services. Includes all the mental and physical work Examples include: farmers, factory workers, construction workers, website designers, investment bankers, teachers, nurses, lawyers, etc. Many business have a Human Resources Department to manage its labour. Wages and salaries is usually the largest expense of any company.

Capital Resources The money to start the business and needed for the purchase of equipment, tools, computers, etc, to keep the business running. The money to start the business and needed for the purchase of equipment, tools, computers, etc, to keep the business running. For example: buildings, equipment, tools, trucks, furniture, are all examples of capital resources. For example: buildings, equipment, tools, trucks, furniture, are all examples of capital resources.

Information Using computers and other technology, businesses track information about their operations, customers, and competitors. Managing information is especially important for international corporations which have offices and plants around the world.

Entrepreneurship The individuals who bring all the factors of production together to start a business. The individuals who bring all the factors of production together to start a business. Includes individuals who have the skills and determination to start and operate a business Includes individuals who have the skills and determination to start and operate a business

2. Marketing Marketing Defined All the business activity used to plan, price, promote, and distribute goods or services to satisfy consumer needs and wants. All the business activity used to plan, price, promote, and distribute goods or services to satisfy consumer needs and wants. 4 P’s of Marketing 4 P’s of Marketing 1. Product 1. Product 2. Price 2. Price 3. Promotion (includes advertising) 3. Promotion (includes advertising) 4. Place (Distribution) 4. Place (Distribution) Mrs. Banks’ 5 th P Mrs. Banks’ 5 th P 5. People (Customers) 5. People (Customers) Marketing involves a great deal of research (Market Research) Marketing involves a great deal of research (Market Research)

3. Finance Managing money is referred to as finance. Managing money is referred to as finance. Keeping accurate records on all the money coming into the business and all the money going out is very important. Keeping accurate records on all the money coming into the business and all the money going out is very important. Why? Why? Large companies will have an accounting department to handle the finances of the business. Large companies will have an accounting department to handle the finances of the business.

4. Human Resources A Human Resource Department is responsible for: 1. Determining job requirements 1. Determining job requirements 2. Recruiting and interviewing potential new employees 2. Recruiting and interviewing potential new employees 3. Selecting the right people for the job. 3. Selecting the right people for the job. 4. Training and developing the employees. 4. Training and developing the employees. 5. Assessing employee performance 5. Assessing employee performance 6. Managing employee wages/salaries and benefits (dental plans, life insurance, pension plans etc) 6. Managing employee wages/salaries and benefits (dental plans, life insurance, pension plans etc) The People Owner(s) Managers Supervisors Staff Employees

5. Management Includes the planning, organizing, and controlling of all business activities. Managers set short and long- term goals of the company Organize employees and employee responsibilities Need strong leadership, communication, interpersonal and problem solving skills.

6. Research and Development (R&D) Invest capital and other resources into researching and developing new technologies, processes, and products that will: Invest capital and other resources into researching and developing new technologies, processes, and products that will: 1. improve how current technologies, processes, or products work or function (make them cheaper to produce, cleaner on the environment, work faster, provide more benefits to the consumer, etc); 1. improve how current technologies, processes, or products work or function (make them cheaper to produce, cleaner on the environment, work faster, provide more benefits to the consumer, etc); 2. create new ways to fight and/or cure disease; and 2. create new ways to fight and/or cure disease; and 3. address other societal needs, concerns, wants and demands 3. address other societal needs, concerns, wants and demands

Business Interdependence Business Interdependence  Businesses rely on other businesses to provide resources to them in order to run their business.  A car manufacturer (GM) relies on other business and vice versa for their raw materials and capital resources. (i.e. plastics, electronics, and (i.e. plastics, electronics, and various components of cars GM various components of cars GM needs for their cars.) needs for their cars.)

Business Interdependence Example: A large clothing manufacturing company needs: A large clothing manufacturing company needs: 1. cotton (natural resource) 1. cotton (natural resource) 2. machinery or replacement parts (capital resource) 2. machinery or replacement parts (capital resource) 3. accounting services (human resources) 3. accounting services (human resources) The clothing manufacturer relies on other businesses to provide these products and services. The clothing manufacturer relies on other businesses to provide these products and services.

Additional Sources Used Additional Sources Used 1. Liepner, Michael E. et al. Exploring Business For the 21 st Century. Toronto:McGraw-Hill Ryerson Limited, Wilson, Jack et al. The World of Business (5 th ed.) Toronto: Nelson Education Ltd., 2007