Business Management SL
Business Management SL
6
Chapters
175
Notes
Unit 1 - Introduction To Business Management
Unit 1 - Introduction To Business Management
Unit 2 - Human Resource Management
Unit 2 - Human Resource Management
Unit 3 - Finance & accounts
Unit 3 - Finance & accounts
Unit 4 - Marketing
Unit 4 - Marketing
Unit 5 - Operations management
Unit 5 - Operations management
Unit 6 - Assessment
Unit 6 - Assessment
IB Resources
Unit 1 - Introduction To Business Management
Business Management SL
Business Management SL

Unit 1 - Introduction To Business Management

Defining Business: From Raw Materials to Recognized Revenue

Word Count Emoji
648 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 14th Jun 2024

Table of content

What is a business? ๐Ÿข

  • At its core, a business seeks to satisfy human needs and wants through a variety of activities.
  • Real-World Example: Imagine a bakery (business). They use flour, sugar, and other ingredients (inputs) to make delicious cakes and pastries (output) to satisfy your sweet tooth (a want)!

Types of business activities

  • Producing or extracting: Growing crops or mining raw materials.
    • Example: A farm growing strawberries or a company mining gold.
  • Creating products: Manufacturing and assembling goods.
    • Example: A factory making toys or gadgets.
  • Providing services: Offering non-tangible assistance or activities.
    • Example: A hair salon giving haircuts or a gym offering fitness classes.

Diverse business approaches ๐ŸŽญ

  • Single Activity Businesses: Focus on one type of activity.
    • Example: An olive farm.
  • Multi-Activity Businesses: Engage in multiple related or unrelated activities.
    • Example: A farm that grows olives and also produces its own olive oil.

The business value creation process ๐Ÿš€

  • Businesses take resources (inputs) and process them to generate products or services (outputs).
  • By doing this, they add value to the inputs. That's how a raw apple is turned into a yummy apple pie!
  • The reward? Revenue from sales and recognition!

Unconventional businesses? ๐Ÿค”

  • Not all entities that operate like businesses are traditionally seen as businesses.
  • Charities, religious organizations, clubs – they all operate with business principles.
    • Example: A church may need financial resources for renovations or a charity might sell merchandise to fund its causes.

Understanding needs vs. wants

  • Needs: Essential for survival like food, water, clothing.
    • Example: Bread, water bottles, jackets.
  • Wants: Desirable but not essential.
    • Example: A PlayStation, designer shoes, gourmet chocolates.
  • Both needs and wants drive businesses, even unconventional ones!

Resources needed by all businesses

  • Human: The workforce!
    • Example: Engineers in a tech company or chefs in a restaurant.
  • Physical: Materials, machinery, space.
    • Example: Computers for an IT company or ovens for a pizzeria.
  • Financial: Money to make it all happen.
    • Example: Investments, loans, or profits to fund operations.

Enterprise - the secret ingredient ๐ŸŒŸ

  • It's the business idea and determination to succeed.
  • Not limited to fancy high-tech firms! Even the local lawn-mowing service is backed by enterprise.

Different ways to add value

  • Capital-Intensive Processes: Heavy reliance on land/machinery.
    • Example: A car factory with massive assembly lines.
  • Labour-Intensive Processes: Heavy reliance on human labor.
    • Example: Artisans handcrafting jewelry or a call center.

Output types - what do businesses offer?

  • Goods: Tangible products.
    • Example: Apples from a farm or the latest smartphone.
  • Services: Intangible offerings.
    • Example: Attending a yoga class or getting a massage. You can't put these in a bag!

Quick recap

Businesses come in all shapes and sizes, from single to multi-activity, aiming to meet our needs and wants. They use a mix of human, physical, and financial resources, fueled by the spirit of enterprise. They create value through capital or labor-intensive processes and offer goods, services, or a mix of both!

 

Study Tip: Imagine running your own business. What will it look like? This will help you relate to these concepts better! ๐Ÿ‹๐Ÿง๐Ÿ“ฑ๐Ÿง˜‍โ™€๏ธ๐Ÿš—๐Ÿ’ผ๐Ÿš€

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IB Resources
Unit 1 - Introduction To Business Management
Business Management SL
Business Management SL

Unit 1 - Introduction To Business Management

Defining Business: From Raw Materials to Recognized Revenue

Word Count Emoji
648 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 14th Jun 2024

Table of content

What is a business? ๐Ÿข

  • At its core, a business seeks to satisfy human needs and wants through a variety of activities.
  • Real-World Example: Imagine a bakery (business). They use flour, sugar, and other ingredients (inputs) to make delicious cakes and pastries (output) to satisfy your sweet tooth (a want)!

Types of business activities

  • Producing or extracting: Growing crops or mining raw materials.
    • Example: A farm growing strawberries or a company mining gold.
  • Creating products: Manufacturing and assembling goods.
    • Example: A factory making toys or gadgets.
  • Providing services: Offering non-tangible assistance or activities.
    • Example: A hair salon giving haircuts or a gym offering fitness classes.

Diverse business approaches ๐ŸŽญ

  • Single Activity Businesses: Focus on one type of activity.
    • Example: An olive farm.
  • Multi-Activity Businesses: Engage in multiple related or unrelated activities.
    • Example: A farm that grows olives and also produces its own olive oil.

The business value creation process ๐Ÿš€

  • Businesses take resources (inputs) and process them to generate products or services (outputs).
  • By doing this, they add value to the inputs. That's how a raw apple is turned into a yummy apple pie!
  • The reward? Revenue from sales and recognition!

Unconventional businesses? ๐Ÿค”

  • Not all entities that operate like businesses are traditionally seen as businesses.
  • Charities, religious organizations, clubs – they all operate with business principles.
    • Example: A church may need financial resources for renovations or a charity might sell merchandise to fund its causes.

Understanding needs vs. wants

  • Needs: Essential for survival like food, water, clothing.
    • Example: Bread, water bottles, jackets.
  • Wants: Desirable but not essential.
    • Example: A PlayStation, designer shoes, gourmet chocolates.
  • Both needs and wants drive businesses, even unconventional ones!

Resources needed by all businesses

  • Human: The workforce!
    • Example: Engineers in a tech company or chefs in a restaurant.
  • Physical: Materials, machinery, space.
    • Example: Computers for an IT company or ovens for a pizzeria.
  • Financial: Money to make it all happen.
    • Example: Investments, loans, or profits to fund operations.

Enterprise - the secret ingredient ๐ŸŒŸ

  • It's the business idea and determination to succeed.
  • Not limited to fancy high-tech firms! Even the local lawn-mowing service is backed by enterprise.

Different ways to add value

  • Capital-Intensive Processes: Heavy reliance on land/machinery.
    • Example: A car factory with massive assembly lines.
  • Labour-Intensive Processes: Heavy reliance on human labor.
    • Example: Artisans handcrafting jewelry or a call center.

Output types - what do businesses offer?

  • Goods: Tangible products.
    • Example: Apples from a farm or the latest smartphone.
  • Services: Intangible offerings.
    • Example: Attending a yoga class or getting a massage. You can't put these in a bag!

Quick recap

Businesses come in all shapes and sizes, from single to multi-activity, aiming to meet our needs and wants. They use a mix of human, physical, and financial resources, fueled by the spirit of enterprise. They create value through capital or labor-intensive processes and offer goods, services, or a mix of both!

 

Study Tip: Imagine running your own business. What will it look like? This will help you relate to these concepts better! ๐Ÿ‹๐Ÿง๐Ÿ“ฑ๐Ÿง˜‍โ™€๏ธ๐Ÿš—๐Ÿ’ผ๐Ÿš€