Business UNIT 1: Intro to Business Management

A decision-making organization established to produce goods and/or provide services.

Business activity involved with the extraction of natural resources, e.g. fishing, mining and agriculture.

Business activity involved with the manufacturing or construction of finished products.

Business activity that involves providing services to customers, i.e. consumers and business clients.

Business activity involving the creation or sharing of knowledge and information.

A person who organises human, physical and financial resources to start a business.

is the activity of entrepreneurship when it takes place within an established organization.

A legal status that enables its owners not to be liable for more than the original amount of money invested in the business

This means the owner of a business is personally liable for any business debts, even if this requires the debts to be settled by selling off personal assets.

includes all those organizations that are owned by private individuals or groups of individuals

includes all those organizations that are owned and operated by either the government or their agencies

business by two or more individuals, has unlimited liability.

individuals who run their own businesses. They keep all the profits, but is responsible for any losses and had unlimited liability.

is one that reuses any financial surplus to achieve its organizational goals. Rather than for profits

non-profit organizations that exist to benefit the public.

Businesses that actively seek ways to improve society and the environment through core business activities and business designs.

The long-term goals of a business, which could include profit maximization, growth, and increased market share.

The relatively short-term and specific goals of a business which are used to guide the daily functioning of the organization. Ex. departmental reorganization

a written expression of an organization's purpose and reason for being.

a written expression of an organization's long-term ambitions that it hopes to realize in the future

is an official document with details of an organization and the proposals for reaching its goals.

a strategic decision-making tool, used to plan product and market growth strategies

existing product, existing market

new products in existing markets

new product, new market. Most risky.

existing product, new market

a diagnostic tool to analyse its internal strengths and weaknesses, and external opportunities and threats

a diagnostic tool, used to study the factors in the external business environment that impact on its operations.

is any individual or group that affects an organization or is affected by it.

are individuals or groups who are part of the organization. (employees, owners, shareholders, managers). LEARN CONFLICTS BETWEEN AND INTERESTS.

are people or organizations not part of the business but have a direct interest in its decisions, actions and performance. (Pressure groups/unions, suppliers, government, bank, media, competition, customers). LEARN CONFLICTS BETWEEN AND INTERESTS.

enable a business to benefit from lower average costs (the cost per unit) by increasing the size of its operations.

will occur if the firm grows beyond its ability to operate efficiently. This causes the firm's average costs of production to rise.

occur for a particular organization (rather than the industry in which it operates) as it grows. SAME AS EXTERNAL DISECONOMIES OF SCALE BUT COST OF PRODUCTION INCREASES.

occur when a firm's average cost of production falls as the industry as a whole (rather than the firm itself) grows. SAME AS EXTERNAL DISECONOMIES OF SCALE BUT COST OF PRODUCTION INCREASES.

when an organization expands without the help of an external partners. LEARN REASONS WHY

when an organization needs the support of a partner organizations for growth. LEARN REASONS WHY

one firm purchases another firm. Company A acquires 50% or more of the shares of Company B.

when two or more companies join to form a single firm

involves a company purchasing a controlling interest in another company. Are almost always hostile in nature as they occur against the wishes of the owners of the target company.

involve the creation of a new company by two or more parent companies in order to carry out an aim of objective. Can be dissolved without to much impact. (Samsung + Spotify).

involve two or more organizations working together to realize a set of common objectives. Loosest form of external growth no entity created. (Star alliance)

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using the name and format by the franchisor. LEARN PROS AND CONS.

any business organization that has operations overseas, irrespective of whether it produces/sells goods and/or provides services, i.e., MNCs operate in two or more countries.

Payments received by a business (inflows) and payments made by a business (outflows).

is a person, company, or institution that owns at least one share of a company's stock or in a mutual fund.