Business- Formative 1

Annotations:

• JEZABEL RODRIGUEZ  5 PAI C 

1. DEFINITION: A BUSINESS IS A DESICION-MAKING ORGANIZATION INVOLVED IN THE PROCESS OF USING INPUTS TO PRODUCE GOODS AND/ OR TO PROVIDE SERVICES
   1. Goods: Are ohrysical products
   2. Services: Are intangible products
2. FACTORS OF PRODUCTION
   1. LAND
   2. LABOUR
   3. CAPITAL
   4. Enterprise
3. Chain of production
   1. Production
   2. Manufacturing
   3. Services

      Annotations:

      • Terciario y cuaternario output
   4. Consumers
4. The production process
   1. Inputs

      Annotations:

      • RAW MATERIALS COMPONENTS MACHINERY EQUIPMENT AND LABOUR
   2. Processes

      Annotations:

      • TURNING  THE INPUTS INTO MANUFACTURED GOODS OR INTO THE PROVISION OF SERVICES
   3. Outputs

      Annotations:

      • THE OUTPUTS OR PROVISION OF FINAL GOODS AND SERVICES
5. THE MAINS FUNCTIONS OF BUSINESS
   1. Human Resources (HR)

      Annotations:

      • MANAGE THE PERSONNEL ORGANIZATION
   2. Finance and Accounts

      Annotations:

      • MANAGE MONEY  DIRECTOR MUST ENSURE THAT ACCURATE RECORDING AND REPORTING OF FINANCIAL DOCUMENTATION TAKES PLACE
   3. Marketing

      Annotations:

      • IDENTIFY AND SATISFY NEEDS AND WANTS OF CUSTOMERS CHARGE OF ENSURING THAT THE PRODUCTS SELL
      • PRODUCT PRICE PROMOTION  PLACE
   4. Operations

      Annotations:

      • CONVERTING RAW MATERIALS AND COMPONENTS INTO FINISHED GOOD READY  FOR SALE AND DELIVERY TO CUSTOMERS
6. Businnes Sectors
   1. Primary sector

      Annotations:

      • ARE INVOLVED WIRH THE EXTRACTION, HARVESTING AND CONVERSION OF NATURAL RESOURCES  (LEDCS)
   2. Secondary Sector

      Annotations:

      • ARE INVOLVED IN THE MANUFACTURING OR CONSTRUCTION OF PRODUCTS
   3. Tertiary Sector

      Annotations:

      • SPECIALIZE IN PROVIDING SERVICES TO THE GENERAL POPULATION
   4. Quaternary Sector

      Annotations:

      • ARE INVOLVED IN INTELLECTUAL, KNOWLEDGE/BASED ACTIVITIES THAT GENERATED AND SHARE INFORMATION  (MEDCS)
7. THE ROLE OF ENTREPRENURSHIP AND INTRAPRENEURSHIP
   1. ENTERPRENEURSHIP
      1. Is the act of creatinga business or businesses while building and scaling it to generate profit
      2. ENTREPRENEUR
         1. Is an individual who plans , organizes and manage their own business, taking on financial risks in doing so
         2. Have the skills needed to oversee the whole production process, takes potentially high risks.
   2. INTRAPRENEURSHIP
      1. Is the act of beging an entrepreneur but as an employee within a large organization
      2. INTRAPRENEUR
         1. Is an employee who thinks and act as a entrepreneur but work in an organization
         2. Is independent, proactive, creative, and generates new ideas and innovations to the organization
   3. REASONS FOR STARTING UP A BUSINESS
      1. HOBBIES

         Annotations:

         • SOME PEOPLE MIGHT WANT TO PURSUE THEIR PASION OR TO TURN INTO THEIR HOBBY INTO A BUSINESS
         1. GROWTH

            Annotations:

            • CAPITAL GROWTH
            1. EARNINGS

               Annotations:

               • THE CHINESE HAVE A SAYING THAT "YOU CAN NEVER GET RICH EARNING MONEY FROM WORKING FOR SOMEONE ELSE ".
               1. Transference and Inheritace

                  Annotations:

                  • IN MANY SOCIETIES IT IS THE CULTURAL NORM TO PASS ON ASSETS, INCLUDING BUSINESS, TO THE NEXT GENERATION
                  1. AUTONOMY

                     Annotations:

                     • INDEPENDENCE  FREEDOM OF CHOICE  FLEXIBILITY
                     1. SECURITY

                        Annotations:

                        • MORE JOB SECURITY FOR SOMEONE WHO IS THEIR OWN BOSS.
                        1. CHALLENGE

                           Annotations:

                           • IT IS THIS CHALLENGE THAT DRIVES THEM TO PERFORM AND WHAT GIVES THEM PERSONAL SATISFACTION.
8. STEPS IN THE PROCESS OF STARTING UP A BUSINESS
   1. Write a business plan
   2. Obtain start-up capital
   3. Obtain business registration
   4. Open a business bank account
   5. Marketing
9. PRPBLEMS THAT A NEW BUSINESS MAY FACE
   1. Lack of finance
   2. Cash flow problems
   3. Marketing problems
   4. Legalities
   5. Unestablished customer base
   6. People management problems
   7. Production problems
   8. External influences
   9. Poor location
   10. High production costs