1 / 20

Topic 5 pg 117

Topic 5 pg 117. THE ROLE OF BUSINESS MANAGEMENT IN IN THE ECONOMIC AND MANAGEMENT ENVIRONMENT A business is a private need satisfying institution that takes risk, in pursuit of profit , to offer products and services to the consumer in the market. Free market system or market economy.

roary-diaz
Download Presentation

Topic 5 pg 117

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Topic 5 pg 117 • THE ROLE OF BUSINESS MANAGEMENT IN IN THE ECONOMIC AND MANAGEMENT ENVIRONMENT • A business is a private need satisfying institution that takes risk, in pursuit of profit , to offer products and services to the consumer in the market.

  2. Free market system or market economy • Free to: • Start business • Close business • Buy or sell shares in business • Produce goods and services [ within limits]

  3. COMPOSITION OF S.A.BUSINESS pg 120 • 75 Holding companies • 642 listed companies • 195 000 unlisted registered companies • 374 00 close corporations [cc] • 473 000 sole proprietors and partnerships • 3 800 000 enterprises in informal sector • NTSIKA AGENCY [1997]

  4. GDP CONTRIBUTION pg 121 • Govt 16% • Public corporations 13% • Large private enterprises 25% • Small and medium enterp 29% • Informal/micro 17%

  5. The Needs Of the Community pg 122 • PHYSCHOLOGICAL NEEDS • SELF ACTUALIZINGCommunity/high qualification • EGO Large home/ expensive car • ___________________________________________ • PHYSICAL NEEDS • Social needsFriends • Security Needs House • Physiological [Bodily] Needs Food/clothes • water/air

  6. Pg. 122

  7. How businesses satisfy needs pg 125 • 1. Entrepreneur- combines capital; labour and natural resources to produce goods and services. He/she creates economic utility. • 2. Risks time effort and money to make a profit. • 3. profit = income - cost

  8. Organization • 1. one man business is one man business. 2. If more than one person involved then it is an organization or enterprise. • 3.Entrepreneurs start organizations. • 4.Organizations satisfy needs by providing goods and services

  9. THE NATURE OF BUSINESS MANAGEMENT • “ Business management is a study of how a business operates.” • Business management leads to wealth creation.

  10. 2.2 Pg 130 Economics and Business Economics as related sciences. • Economics is concerned with factors of production and choices and need satisfaction of the whole country. • Business economics deals with the facors of production and need satisfaction via na enterprise [ organization].

  11. 2.3 Pg 131 Reasons for the existence and task of business management. • The economic principle = people effort to achieve possible need satisfaction with limited resources. “ min input and maximum output ” Reason for business management – to help enterprises to satisfy the economic principle by means of research and management education and training. Maximize profit.

  12. 2.4 Pg 133 MULTIDISCIPLINARY NATURE OF BUSINESS MANAGEMENT • Multidisciplinary means bus manag uses many subjects • Strategy from war • Organizational behaviour – sociology • Productivity from industrial engineering. • Mathematics; Statistics; communication; accounting; law

  13. Study unit 3- pg 136SUBDIVISIONS OF MANAGEMENT-7 functions or 7 functional management areas: • 1. Financial Management • 2. Human Resources • 3. Purchasing • 4. Production or operation • 5. Marketing • 6. Public relations • 7. General management

  14. MARKETING MANAGEMENT • 1. Assessing the market • 2. Determining consumer needs[needs determination] • 3. Develop a marketing strategy

  15. ASSESSING THE MARKET • 1. Do research • 2. Determine customer’s needs.[ qualitative and quantitative] • 3. Purchasing power. • 4. Purchasing behaviour.

  16. Nature of the market • Based on demographics • Number • Age • Male/female • Growth pattern.

  17. Spending power and patterns • Amount of money available for purchasing goods and services. • Pattern – how is the spending power distributed e.g. Gauteng has +-30% market potential.

  18. Market behaviour • Needs • Attitudes • Preferences • Personality. • Motive • Disposition

  19. MARKETING STRATEGY • 1. Product • – size; durability; packaging; trade mark; obsolescence; differentiation; 2. Price have to make a profit; must consider competition; consider matrix 3. Place –Distribution channel wholesaler-retailer or direct 4.People-Marketing communication How will your customers know about your product- radio; tv; magazines; newspapers; internet

More Related