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Business Management 1 > Introduction To Business Management > Flashcards

Introduction To Business Management Flashcards

(46 cards)

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1
Q

What is a business?

A

An organisation that is involved in industrial, professional or commercial activities

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2
Q

What does it mean for a business to have a competitive advantage?

A

A business is able to offer something unique, or offer a cheaper product/service than its competitors

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3
Q

What are products?

A

Items that are tangible in nature

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4
Q

What is a service?

A

An intangible activity

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5
Q

What is a need?

A

Anything needed for survival

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6
Q

What is a want?

A

Goods and services a person finds desirable.

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7
Q

What is buying power?

A

The ability to purchase a product or service

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8
Q

What is demand?

A

When a person has a need or a want and the ability to purchase something to satisfy that need or want

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9
Q

What is the first tier of Maslow’s hierarchy of needs?

A

Physiological needs

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10
Q

What is the second tier of Maslow’s hierarchy of needs?

A

Safety needs

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11
Q

What is the third tier of Maslow’s hierarchy of needs?

A

Love/belonging needs

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12
Q

What is the fourth tier of Maslow’s hierarchy of needs?

A

Esteem needs

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13
Q

What is the fifth tier of Maslow’s hierarchy of needs?

A

Self-actualisation

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14
Q

What is limited resources?

A

Restricted quantities of inputs that may be required by a business

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15
Q

What is scarcity?

A

Insufficient goods, resources or abilities to achieve the desired end

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16
Q

What are the 4 factors of production?

A

Capital
Land
Labour
Entrepreneurship

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17
Q

What is an economic system?

A

The organisations and methods used to determine what goods and services are produced, how they are produced and for whom they are produced.

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18
Q

What are the 4 economic systems?

A

Traditional
Command
Market
Mixed

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19
Q

What is the traditional system?

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A

System whereby people produce only what they need for themselves, which requires people to barter with one another

20
Q

What is the command system?

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A

System whereby all factors of production are state-owned and controlled, and all supply, demand and pricing are planned by the state

21
Q

What is the market system?

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A

System whereby anyone is free to start and run a business in the way they see fit. It is characterised by the ‘invisible hand’ of market forces, i.e., supply, demand and competition

22
Q

What is the mixed system?

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A

System that includes elements of both command and market systems. Major areas are controlled by government; minor areas are controlled by individuals

23
Q

What is a business sector?

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A

The type of activity that a business predominantly performs

24
Q

What does the primary sector involve?

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A

Mostly unskilled labour attaining raw materials to be used in production

25
What does the secondary sector involve?
Mostly semi-skilled labour transforming raw materials into goods and services
26
What does the tertiary sector involve?
Mostly highly skilled labour engaging in the end-user sale of goods and services
27
What are the two sections of the business environment?
The internal environment and the external environment
28
What is the micro-environment?
The internal factors within a business that may impact its activities and success
29
What are the internal factors of the micro-environment?
Vision and mission Goals and objectives Culture Diversity Ethics Manner in which it desks with change
30
What are the 8 functions within the micro-environment?
General management Purchasing Logistics Marketing Finances Human resources Public relations Administration
31
What is the market environment?
The external factors that affect influence a business but that can also be included by the business
32
What are the 5 factors of the market environment?
Suppliers Publics Customers Competitors Market intermediaries
33
What are the 6 types of publics?
Media publics Government publics Local publics Internal publics Citizen-action publics General publics
34
What is a public?
Any group that has an actual or potential interest in, or impact on, an organisation's ability to achieve its objectives
35
What are market intermediaries?
Businesses that help a firm to promote, sell and distribute its goods to final buyers
36
What is the macro-environment?
General environment that can affect the working of all business enterprises. They are forces outside of a business's control
37
What are the forces of the macro-environment?
Demographic forces Economic forces Technological forces Natural forces Political forces
38
What does environmental scanning do?
It allows businesses to observe the industry and attempt to establish and evaluate its position within it
39
What are 3 methods of environmental scanning?
SWOT analysis PESTLE analysis Porter's Five Forces analysis
40
What does SWOT analysis determine?
A business's position in relation to the market
41
What is a PESTLE analysis used for?
To identify opportunities and threats to a business
42
What are the 2 steps of a PESTLE analysis?
1. Collect information about the 6 PESTLE categories 2. Identify which of the factors pose threats and opportunities to the business
43
What is a Porter's Five Forces analysis used for?
To determine industry profitability
44
What are Porter's Five Forces?
Threat of substitutes Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Rivalry among existing firms
45
What are the 6 barriers of entry?
Economies of scale Product differentiation Capital requirements Cost advantages independent of size Access to distribution channels Government and legal barriers
46
What are economies of scale?
Situations where the more a business produces accumulatively, the cheaper its cost per unit of production

Business Management 1 (10 decks)

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