Book One - Session One
Book one - Session One
What is a Business
- What a Business Does
- Characteristics of Businesses:-
- They consist of a number of people.
- The people who belong to them will share some values and views about the purpose of the businesses.
- They will have incomes and costs, profits and losses.
- They need different types of resources to produce different goods and services.
- They need to coordinate a number of different activities done by different individuals.
- Types of business:-
Type of Business Description Examples
Public Sector Any part of the nation’s economy that is controlled and operated by the state. Local authorities, schools, government departments, hospitals, armed forces.
Private sector Businesses that are not controlled by the state. Sole traders, partnerships, producer and consumer cooperatives.
Not-for-Profit The primary aim of such organisations is in terms other than financial profitability (not implying that its aim would be a loss) Charities, voluntary organisations, clubs, societies, trade unions, pressure groups.
For Profit The primary aim of such organisations is to make profit. Railways, airlines, nationalized industries.
- Morgan’s Metaphors to define a business :-
Metaphors are the process of facilitating business and link it in our daily lives. Morgan uses metaphors to illuminate and extend our thinking regarding the question, “what is business”. The ‘images of organization’ offered by the following eight metaphors:
Metaphor Explanation
A machine businesses are designed and operated like machines with visible structures and procedures
An organism When the environment around businesses change (like organisms), so does the business.
A brain Seeing the business as a brain means realising that it has to be able to respond to change in a rational manner
A culture Business culture is made up of values, perspectives, and principles to people who work there.
A political system A political
What is a Business
- What a Business Does
- Characteristics of Businesses:-
- They consist of a number of people.
- The people who belong to them will share some values and views about the purpose of the businesses.
- They will have incomes and costs, profits and losses.
- They need different types of resources to produce different goods and services.
- They need to coordinate a number of different activities done by different individuals.
- Types of business:-
Type of Business Description Examples
Public Sector Any part of the nation’s economy that is controlled and operated by the state. Local authorities, schools, government departments, hospitals, armed forces.
Private sector Businesses that are not controlled by the state. Sole traders, partnerships, producer and consumer cooperatives.
Not-for-Profit The primary aim of such organisations is in terms other than financial profitability (not implying that its aim would be a loss) Charities, voluntary organisations, clubs, societies, trade unions, pressure groups.
For Profit The primary aim of such organisations is to make profit. Railways, airlines, nationalized industries.
- Morgan’s Metaphors to define a business :-
Metaphors are the process of facilitating business and link it in our daily lives. Morgan uses metaphors to illuminate and extend our thinking regarding the question, “what is business”. The ‘images of organization’ offered by the following eight metaphors:
Metaphor Explanation
A machine businesses are designed and operated like machines with visible structures and procedures
An organism When the environment around businesses change (like organisms), so does the business.
A brain Seeing the business as a brain means realising that it has to be able to respond to change in a rational manner
A culture Business culture is made up of values, perspectives, and principles to people who work there.
A political system A political