Sales and Inventory System
MODULE # 1
THE BUSINESS AND ORGANIZATION
Attributes of the term ‘Business’
Business has been defined as an organization of the people with varied skills, which uses property or talents, to produce goods or services, which can be sold to others for more than their costs. Or it may be considered as the system through which economic activity is organized and directed by those who seek to make a profit. Business includes lawful activity carried on continuously, which involves buying and selling, or manufacturing, or financing, or the rendering of a service for money.
Business should be defined in three dimensions: 1. Who is being satisfied? 2. What is being satisfied? 3. How customer needs are being satisfied?
Stake holders in Business Stake holders are the individuals and groups who can affect by the strategic outcomes achieved and who have enforceable claims on a firm’s performance. Stake holders can support the effective strategic management of an organization. It can be divided into:
1. Internal Stakeholders which could include shareholders, employees, managers and directors
2. External Stakeholders which could include customers, suppliers, government, banks/creditors, trade unions and mass media
Stake holder’s Analysis: • Identify the stake holders. • Identify the stake holders expectations interests and concerns • Identify the claims stakeholders are likely to make on the organization • Identify the stakeholders who are most important from the organizations perspective. • Identify the strategic challenges involved in managing the stakeholder relationship.
What are the different forms of business organizations?
1. Sole Proprietorship- a business which is owned and/or managed by one person.
Advantages:
← Easy to set up ← All profits go to owner ← Owner has total control ← Few regulations to follow
Disadvantages:
← Limited expertise ← Hard to raise money ← Owner
THE BUSINESS AND ORGANIZATION
Attributes of the term ‘Business’
Business has been defined as an organization of the people with varied skills, which uses property or talents, to produce goods or services, which can be sold to others for more than their costs. Or it may be considered as the system through which economic activity is organized and directed by those who seek to make a profit. Business includes lawful activity carried on continuously, which involves buying and selling, or manufacturing, or financing, or the rendering of a service for money.
Business should be defined in three dimensions: 1. Who is being satisfied? 2. What is being satisfied? 3. How customer needs are being satisfied?
Stake holders in Business Stake holders are the individuals and groups who can affect by the strategic outcomes achieved and who have enforceable claims on a firm’s performance. Stake holders can support the effective strategic management of an organization. It can be divided into:
1. Internal Stakeholders which could include shareholders, employees, managers and directors
2. External Stakeholders which could include customers, suppliers, government, banks/creditors, trade unions and mass media
Stake holder’s Analysis: • Identify the stake holders. • Identify the stake holders expectations interests and concerns • Identify the claims stakeholders are likely to make on the organization • Identify the stakeholders who are most important from the organizations perspective. • Identify the strategic challenges involved in managing the stakeholder relationship.
What are the different forms of business organizations?
1. Sole Proprietorship- a business which is owned and/or managed by one person.
Advantages:
← Easy to set up ← All profits go to owner ← Owner has total control ← Few regulations to follow
Disadvantages:
← Limited expertise ← Hard to raise money ← Owner