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1.1 Nature of Business

What is a BusinessAny organization that uses resources to produce a good or service.What is added-value? Changing or altering a natural resource or a semi-finished good to make it more desirable.. What do businesses do? Businesses identify needs of consumers then purchase resources (or i

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1.1 Nature of Business

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    4. Categories of Inputs Land (& natural resources) Fields for factories/ energy for power Labor Employees needed to run machines, sell, etc. Capital Plant/machinery/computers, $ Enterprise People to invest/manage These are also referred to as “Factors of Production”

    5. What is a product Anything that satisfies the needs and wants of customers “good” something tangible—touchable “service” usually intangible—people do things for you

    8. Business Functions (Departments) Marketing Finance Human Resource Management Operations Management

    9. Marketing Identifies consumer wants based on market research Pricing How and where to promote How to sell and distribute

    10. Finance Flow of money in and out of business Provides financial information to management Key division to all companies

    11. Human Resource Management Identifies workforce needs of business Recruits potential employees Selects and trains staff Motivational systems to retain staff and encourage productivity Employment contracts Redundancy and redeployment of staff

    12. Operations Management Insures resources are available for production Maintains production levels Maintains quality levels Oversees production efficiency

    13. Interrelationship All four business functions must work together!

    14. Sectors of Industry Primary Sector – deal with natural resources Farming, fishing, natural resource extraction Secondary Sector – deal with manufacturing and processing Assembly, baking, clothing, construction Tertiary Sector – provide services Retailing, transportation, insurance, banking, tourism, telecommunications

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