1.1 Flashcards
Business
Organisation which inputs resources and processes them to turn them into finished goods.
Goods
Things which can be seen or touched (tangible products).
- Durable: goods which can be used again (car, computer, phone)
- Non-Durable: goods that we only use once but buy regularly (food)
Role of HR department
Management of staff:
- Recruiting/selecting employees
- Providing training for staff
- Motivating employees
- Providing safe work conditions
- Determinng appropiate work compensation
Role of Finance Department
Ensure liquidity problems do not arise and prevent bankruptcy:
- Recording/ maintaining financial records
- Paying bills
- Paying wages and salaries to employees
- Ensuring costs are monitored
- Ensuring there is adequate cash flow
Role of Marketing Department
Anticipation and identification of consumer wants and needs:
- Carrying out research to find what customers want
- Researching and developing products
- Packaging
- Price
- Location
- Promotion
Role of Operations Department
Ensuring approprite processes are used:
- Manufacturing products
- Satisfy customers by making products that meet their needs
- Select appropriate production methods
- Manage stock levels
- Ensure products are high quality
Primary Sector
Exploiting natural resources from the Earth:
- Mining
- Farming
- Oil excavation
Secondary sector
Raw materials from the primary sector are processed/manufactured and turned into goods or services:
- Clothing manufacture
- Shipbuilding
- Car manufacture
Tertiary sector
Businesses which provide a service:
- Banking
- Hairdressers
- Hotel
- Nurse
Quaternary sector
Subgroup of the tertiary sector; provides services that are focused on knowledge. Various types of e-services and IT.
Sectors of business activity
Primary
Secondary
Tertiary
Quaternary
Industrialisation
The period of social and economic change that transforms a society from predomining in the primary sector, to predomining in the secondary sector.
De-industralisation
The reduction of manufacturing within an economy.
Entrepreneur
- Starts a business
- Takes a risk
- Combines resources (human, physical, financial, enterpise)
- Turns an idea into a business
- Unlimited Liability
Intrapreneur
- Works for others
- Takes a risk
- Combines resources
- Shares ideas to entrepreneurs so they can carry them out
