Nature of Business

  • business = produces goods/services
    • mainly for others
    • takes inputs and creates outputs
  • factors of productions
    • labour
    • land
    • capital
    • entrepeneurship
    • knowledge/technology
  • Main functions of businesses
    • finance and accounting
    • marketing
    • procurement
    • management / HR
    • operations management
    • stakeholder management

Characteristics of Successful Businesses

  • market orientation
  • Liquidity and sufficient financial resources
  • cost and risk awareness
  • Profitability
  • qualified personnel
  • social responsibility - stakeholder management
  • sustainability - sustainable development