4. Business
Businesses exist to satisfy the needs and wants of people, organizations and
governments
Market Customers
Market
place
5. Adding Value
Adding value is increasing price of the products by improving
packaging or adding features
It leads to profit making by allowing a business to sell its products
for more than its production costs
6. Opportunity Cost
This next best alternative foregone while making a choice is known
as Opportunity Cost
Because of the fact that choice involves opportunity cost, the
factors of production have to be used in the most efficient way
and therefore SPECIALIZATION
7. Division of labor
The separation of a work process into a number of
tasks, with each task performed by a separate
person or group of persons.
9. Human Resources
Manpower Planning
Job analysis and Job
description
Determining wages and
salaries
Recruitment and Selection
Training and Development
Employee welfare and
motivation
Labour management
relations
Performance Appraisal
10. Marketing
Conducting Market
Research
Price Planning
Customer Relationship
Management
Identifying New Business
Opportunities
Product Planning
Distribution Planning
Consumer Analysis
11. Finance
Advice on the financial and tax implications of
business decisions
Management of wages
Raising Finance
Preparation and monitoring of annual budgets and
forecasts
12. Production
Production and planning
Purchasing department
Stores department
Manufacture of products
Design and technical support department
14. Primary sector
Larger sector in underdeveloped &
developing countries
Less capital investment
Less use of machinery
Agriculture constitutes the major part
15. Secondary sector
Takes the output of the primary sector and
manufactures finished goods
Important sector to promote economic growth and
development
Important source of income in developing countries
16. Tertiary sector
Significant contribution to GDP in developed
countries
Provides key inputs to most other business
Transformation of goods through providing services
17. Quaternary Sector
The portion of an economy that is based on knowledge
applicable to some business activity that usually
involves the provision of services
Examples: Consultancy (offering advice to businesses)
and R&D (research, particularly in scientific fields)
18.
19. Sectoral change
Refers to a shift in the GDP contribution from primary
sector to secondary and tertiary sector
20.
21. Reasons for sectoral change
Cultural Changes
Development of Markets
Market orientation
Rampant migration
Focus on customer relationship management
22. Benefits of sectoral change
Creation of more jobs
Gradual movement towards Tertiary sector
High capital investment towards Government
Increase in country’s GDP
Decrease in imports & increase in exports
23. Role of Entrepreneurship
Bringing together the factors of production
Contributes towards growth of
economy
Reduces unemployment
24. Intrapreneurship
Giving opportunity to a person within a large
corporation to take direct responsibility for turning an
idea into a profitable finished product through assertive
risk-taking and innovation
25. Start-up cost of business
Premises
Buildings
Capital equipment
Marketing costs
Legal and professional fees
26. Factors to consider when setting
up business:
Business idea
Finance
Human resources
Entrepreneurial skills
Fixed assets
Suppliers
Customers
Marketing
Legalities
27. Reasons for starting business
Growth
Earnings
Autonomy
Security
Hobbies
28. Challenges of start-up business
Obtaining Finance
Market potential
Cash flow problems
Customer Loyalty towards other brands
Regulations
Finding the right staff
Uncertainty
