gimmenotes.co.

za
GIMMENOTES.CO.ZA
Contributor’s Name Notes Overview
Unknown Business Management 1A Unit 1

Email
info@gimmenotes.co.za

School
University of South Africa
(UNISA)

CHAPTER 1

Four production factors:

1. Entrepreneurship
2. Capital
3. Natural resources
4. Human resources

Maslow’s hierarchy of needs:

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Free-market economy:

1. Aka capitalism
2. Each individual in society is free to choose his/her own economic activity
3. Private individuals mostly own society’s resources
4. They are free to utilise those resources in whatever way they wish
5. Everyone is free to choose a career

Command economy:

1. Aka communism
2. The state (government) owns almost all of the country’s resources and they decide what should be
manufactured/ provided, who should be employed where, what each person should earn etc.

Socialism:

1. Individuals may own private property and choose their own form of economic activity, however, the state
also owns many of the country’s resources and plays a far greater economic role than in a free-market
system. Many of the large corporations are owned by the state.

Mixed economy:

1. Includes a mix of both public and government control (capitalism and communism)
2. A degree of private economic freedom
3. Centralised economic planning and government regulation

SA economic system:

1. Often classified as a socialistic economic system

2. The three economic systems very rarely occur in a pure form
3. SA is a mixture of the free-market system and the socialist system
4. It is moving towards a market-oriented economy, yet has a high degree of government participation and
control within the economy.

Market economy Socialism Command economy

Main Private ownership of Basic industries are owned State owns and controls all
characteristics industries and agriculture
the factors of by the state
production Freedom of choice
Freedom of choice
Markets Free competition Limited competition as a No competition exists
exists result of state industries
Driving force Profit and reward are Profit motive is recognised Profit is not allowed
achieved according Employee’s pay in state Workers are urged to work
to individual ability owned concerns is based on for the glory of the state
worker’s needs
Management Private businesses Management environment State creates management
create management comprises state owned and environment
environment private businesses No freedom of decision
Managers are free to Decisions are restricted in Managers are also party
make decisions state owned organisations members
People are free to (policy)
choose their careers

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Labour Workers are Workers are free to choose Limited choice of careers
independent and free a career Unions are controlled by the
to choose a career Limited right to strike in state
They are free to join state organisations
a union and strike
Consumers Freedom of choice Freedom of choice, expect Rationing of products
Spending is only in respect to the products of Very limited choice
limited by income the state organisations, the Prices of products and
price of which have to be income levels are set by the
accepted state
Advantages Private initiative Possibility of full State can concentrate
occurs employment resources towards particular
Economic freedom State stabilises economic ends
fluctuations
Disadvantages Unstable Little incentive in state Low productivity
environment organisations Low standard of living
Cyclical fluctuations State organisations can be Planning is difficult or
High social costs unproductive impossible
Business organisations:

1. Profit seeking businesses – aim is to conduct their business in such a way that it will lead to a profit for the
owners
2. Mostly privately owned
3. State owned business organisations are called public corporations

Government organisations

1. Do not operate on a profit-seeking basis

2. Referred to as government departments
3. Provide a service to the community and obtain funds from Treasury (taxpayers’ money)

Non-profit seeking businesses:

1. Privately owned
2. Seek to obtain just sufficient income to cover their costs

Business management as a subject entails the study of how to manage a business as productively as possible.

Economic principle: business must strive to attain the highest income with the lowest cost with the difference
between income and cost being the profit

Functional areas of a business:

General Marketing Financial P/O Purchasing HR

Management Management Management Management Management Ma
Anthropology Cultural Cultural Em
relationships determinants of be
and demand Ma
of

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organisational Behavioural
behaviour structures
Management
of diversity
Economics Environmental Market analysis Influence of Location Market analysis Lab
scanning of for example financial problems of availability ma
consumer strategy and stockpiling an
expenditure Behaviour of Evaluation of Re
financial competition in str
markets the market
Engineering Product Erection of Value analysis Saf
development factories em
Factory
outlay
Law (esp. Format of an Misleading Takeovers Pollution by Representation Co
mercantile organisation practices Mergers factories Law of em
law) Product safety contracts Ne
Packaging wit
Lab
Computer Information Market Financial Optimal Materials Lab
science management research models outlays requirement inf
Planning E-marketing planning sys
models Manufacturing- Lab
resource res
planning
Accounting Control Marketing Interpretation Cost analysis Valuation of Hu
systems audit of financial inventory acc
Budgets Sales and cost statements Cost analysis
analyses
Psychology Leadership Consumer Negotiation Tes
Motivation behaviour Pe
Negotiation Communication an
Sociology Organisational Socio- Business ethics Or
behaviour demographic be
Interface classification
between the Group
organisation influences
and the
environment
Math’s and Decision Market Financial Inventory HR
statistics models research models forecasting mo
Planning Market Deviations
models forecasting
Market
measuring

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