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 CONTENTS
GENERAL
 Aim behind the subject
 Course Learning Objectives (CLOs)
 Assessment Method
 Marks and Grade Distribution
COURSE
 Introduction to Business
 Business Functions
 Objectives of Business
What will you gain from
this subject?
This subject is ideal foundation to
prepare you for your first step on the
career ladder whether you are looking to
work for a multinational firm, a local company
or you want to establish your own business –
the subject will equip you with the knowledge
and skills, you will need to help you get a
competitive advantage in the job market.
Assessment
Methods
Tests
Assignments (minimum
two).

Mid Semester Final Semester

Examination Examination
(after 08- (after 16-
weeks) weeks)
 Course Learning Objectives (CLOs)
CLO Description Taxonomy Leading
No. Level to PLOs
CLO-1 IDENTIFY appropriate management C1 PLO-1
practices for various business
settings.
CLO-2 USE techniques to solve typical C3 PLO-2
problems of for managerial decisions.
The word “Business” is derived from word “BUSYNESS”.

An organization where goods and services are exchanged for one an other or
money.

A business is an organization or enterprising entity engaged in commercial

activities.

A company transacts business activities through the production of a good,

offering of a service or retailing of already manufactured products.

Business - Introduction
Any activity to earn profit.

Any activity that provides goods or services to consumers for the purpose of
making a profit.

Any activity that is carried out to provide good, service, or idea that can be offered
to a market to satisfy a want or need.

Business is a organized activity which supplies goods and services to society for a profit.

Business - Introduction
 Goods: Some companies, such as
Apple, convert resources into Most goods are
tangible products.
tangible products—iPhones, iPods,
Macs.

Tangible products: A tangible

product is a physical object that For example, a soccer
ball is a tangible
can be perceived by touch such as product.
a building, vehicle, or gadget.

Business - Introduction
Services: Others, such as hospitals, convert resources into intangible
products—health care.

Intangible products: An intangible good is a good that does not

have a physical nature, as opposed to a physical good (an object).
Digital goods such as downloadable music, mobile apps or
virtual goods used in virtual economies are all examples
of intangible goods.

Business - Introduction
 Idea: Ideas (intellectual property) are any creation of the intellect that
has commercial value, but is sold or traded only as an idea, and not as a
resulting service or good.

Literary or artistic works,

ideational property, such as patents,
appellations of origin,
business methods, and
industrial processes.

Business - Introduction
Functional areas within business
 Key functions in business

Customer
services
Administration
Operations and IT support

The main functional Marketing and

areas sales
Finance

Human
Research and
resources
development
 • In a small business, will be done by individuals
Delivering key • In a medium/large business, will be done by
functions individuals working in functional areas or
departments
Links between functions
HR R&D
• All functional areas must link
together to achieve the overall Ops
aims and objectives

• This means cooperation and IT Admin Sales

good communications

CS Marketing

Finance
The Human Resources functional area
exchanges data with the Accounting and
Finance, Marketing and Sales, and Supply
Chain Management functional areas
 Human resources
Recruitment, retention
and dismissal
Health and
safety Working
The main conditions
responsibilities of the
human resources
function
Employee Training,
organisations development
and unions and promotion

Includes the legal rights and responsibilities of

employer and employees
 Finance

Concerned with money and future plans

• Preparing accounts, eg invoices, management accounts, financial
accounts for shareholders and Inland Revenue
• Preparing wages and salaries
• Obtaining capital and resources, eg money for expansion or to
pay for resources such as equipment and materials.
 Administration and IT support
Clerical work, eg
mail, record keeping
Cleaning and
maintenance Health and
The role of safety
administration and ICT
function

Security
Support for software applications,
electronic communications and
electronic transactions
 Operations

• Concerned with the main business

activities
• Obtains and converts resources of
the business into goods/services, ie
– Buildings and land
– Equipment
– People
– Materials
 Marketing and Sales
Both are concerned with customer needs.

Market research

Activities
include:
Sales Promotion
 Concerned with customer relationships
Activities include:
• Providing information
Customer
• Giving advice
service • Providing credit facilities
• Delivering goods
• Providing after-sales service
 Research and development
Concerned with developing new goods/services and updating old ones

Activities include:
• Technological developments
• Scientific research
• Design features
• Performance of product
 Functional variations
No two businesses are the same!
Functions will vary because of:
• Size and scale of business
• Activities of business
• Type(s) of customers
• Needs of customers
• Preferences of owner(s)
 Investigating functional areas (DIY)
• Identify key functions
• Find out where these carried out (or by whom)
• Check names of key areas/departments
• Identify links between functions/areas
• Identify use of IT within/between functions and customers
• Note any problem areas