BUSINESS AND BUSINESS AND MANAGEMENTMANAGEMENT

MODULE 1MODULE 1

BUSINESS ORGANIZATIONS BUSINESS ORGANIZATIONS & ENVIRONMENT& ENVIRONMENT

Business Functions & SectorsBusiness Functions & Sectors A business must carry out several A business must carry out several

vital functions if it is to operate vital functions if it is to operate effectivelyeffectively

Businesses usually give departments Businesses usually give departments (or functional areas) the (or functional areas) the responsibility to carry out these tasksresponsibility to carry out these tasks

Most businesses have the following Most businesses have the following areas…areas…

Purchasing per Region

Production (Operations)Production (Operations)

Responsible for converting raw materials Responsible for converting raw materials into finished goods; ready for delivery to into finished goods; ready for delivery to customerscustomers

Several tasks that include:Several tasks that include:– How the good is to be manufactured and How the good is to be manufactured and

delivereddelivered– What resources are neededWhat resources are needed– How long the production process should takeHow long the production process should take– Inventory managementInventory management– Quality controlQuality control– R & DR & D

MarketingMarketing Responsible for identifying and Responsible for identifying and

satisfying consumer wants and needs satisfying consumer wants and needs by selling the goods manufacturedby selling the goods manufactured

Series of activities generally referred Series of activities generally referred to as the 4 P’s of marketingto as the 4 P’s of marketing– ProductProduct– PricePrice– PromotionPromotion– PlacePlace

Old Spice CampaignOld Spice Campaign

Using the Internet, trace the remarkable Using the Internet, trace the remarkable popularity that the new Old Spice popularity that the new Old Spice campaign has enjoyedcampaign has enjoyed

Is this type of social marketing the new Is this type of social marketing the new wave of product promotion?wave of product promotion?

Analyze the financial results of this Analyze the financial results of this promotionpromotion– The following website may be of some use: The following website may be of some use:

http://www.bnet.com/blog/publishing-style/whyhttp://www.bnet.com/blog/publishing-style/why-old-spice-guy-can-turn-sales-for-p-g-around/-old-spice-guy-can-turn-sales-for-p-g-around/390390

FinanceFinance

Managing and organizing the Managing and organizing the company’s moneycompany’s money

Accurate recording and presentation Accurate recording and presentation to both internal and external to both internal and external interestsinterests

Monitoring overseas markets and Monitoring overseas markets and political systemspolitical systems

Human ResourcesHuman Resources

Responsible for managing the workers in the Responsible for managing the workers in the organizationorganization

Workforce planningWorkforce planning TrainingTraining RecruitmentRecruitment Payments and benefitsPayments and benefits Health and safetyHealth and safety

Formative Case Study – Post Formative Case Study – Post Secondary EducationSecondary Education

Education is big business. Schools can earn revenue Education is big business. Schools can earn revenue from numerous sources, such as tuition fees, from numerous sources, such as tuition fees, grants, fund raising and endowments. They grants, fund raising and endowments. They might also hire out their facilities. They use might also hire out their facilities. They use revenue to finance their costs, such as wages to revenue to finance their costs, such as wages to the teaching staff.the teaching staff.

How are post secondary institutions considered How are post secondary institutions considered specialized? Use the Internet to assist with your specialized? Use the Internet to assist with your answer.answer.

Examine how the four business functions outlined in Examine how the four business functions outlined in these notes, operate in an organization such as these notes, operate in an organization such as schools.schools.

Business SectorsBusiness Sectors

Businesses can b classified according Businesses can b classified according to the stage of production that they to the stage of production that they are engaged in.are engaged in.

There are three main sectors of There are three main sectors of business activitybusiness activity– PrimaryPrimary– Secondary Secondary – TertiaryTertiary

Primary SectorPrimary Sector

Businesses are involved in extraction, Businesses are involved in extraction, harvesting and conversion of landharvesting and conversion of land

Examples of businesses include:Examples of businesses include:– AgricultureAgriculture– FishingFishing– MiningMining– ForestryForestry– Oil extractionOil extraction

Utilizes specialized equipment and Utilizes specialized equipment and machinery, as a result, these businesses machinery, as a result, these businesses are very capital intensiveare very capital intensive

SecondarySecondary Businesses are involved in using raw Businesses are involved in using raw

materials and other resources for the materials and other resources for the manufacturing and construction of finished manufacturing and construction of finished and useable productsand useable products

Businesses include:Businesses include:– Airline manufacturingAirline manufacturing– Construction firmsConstruction firms– Clothing companiesClothing companies– Electronics manufacturersElectronics manufacturers

Manufacturing tends to dominate a Manufacturing tends to dominate a countries national output (wealth creating countries national output (wealth creating sector) – Germany, South Koreasector) – Germany, South Korea

Very volatile to economic conditionsVery volatile to economic conditions

Tertiary SectorTertiary Sector

Businesses and people provide services to Businesses and people provide services to their private and corporate customerstheir private and corporate customers

Also known as the Also known as the service sectorservice sector Examples of businesses include:Examples of businesses include:

– RetailRetail– FinanceFinance– Heath careHeath care– TravelTravel

In some countries, this sector dominates In some countries, this sector dominates the economy (Canada, Italy)the economy (Canada, Italy)

Chain of ProductionChain of Production

Also called the Also called the supply chainsupply chain The three sectors are linked; from The three sectors are linked; from

the extraction of raw materials used the extraction of raw materials used to produce the product through to it to produce the product through to it being delivered to the consumerbeing delivered to the consumer

All three are said to be All three are said to be interdependent, as each sector relies interdependent, as each sector relies on the other on the other

Communication ExerciseCommunication Exercise

Prepare a two minute speech on the Prepare a two minute speech on the value created by intermediaries for value created by intermediaries for producers in a specific supply chainproducers in a specific supply chain

DECA ConnectionDECA Connection You are to assume the role as the fundraising chair for the You are to assume the role as the fundraising chair for the

school’s DECA team. You have developed a unique board game school’s DECA team. You have developed a unique board game based on trivia about Kingston. You have identified two target based on trivia about Kingston. You have identified two target markets within the city – consumers 12 years of age and older markets within the city – consumers 12 years of age and older and businesses. A local business person has given you a quote and businesses. A local business person has given you a quote on producing the game, but you need to prepare a thorough on producing the game, but you need to prepare a thorough distribution plan before you ask for investment money.distribution plan before you ask for investment money.

Prepare a distribution plan that will be presented to the class.Prepare a distribution plan that will be presented to the class. Your evaluation will be based on how well you:Your evaluation will be based on how well you:

– Explain the nature of the supply chainExplain the nature of the supply chain– Explain the relationship between customer service and Explain the relationship between customer service and

distributiondistribution– Your selection of channels of distributionYour selection of channels of distribution