Business Studies: Core Concepts

• Business studies involves studying activities related to running a business. Encompassing finance, marketing, management, and economics.
• This interdisciplinary field incorporates sociology, psychology, and political science.
• Students gain the knowledge and skills to effectively manage and operate businesses.

Core Concepts

• Supply and demand determine market prices.
  • Supply represents the amount of product/service available.
  • Demand represents the amount consumers are willing/able to buy.
• Market structures vary: perfect competition, monopolistic competition, oligopoly, and monopoly.
  • Perfect competition: many firms, identical products, no barriers to entry/exit.
  • Monopolistic competition: many firms, differentiated products.
  • Oligopoly: few firms dominate.
  • Monopoly: single firm controls the market.
• Production costs split into fixed (constant) and variable (fluctuating).
• Revenue includes total (income from sales) and marginal (additional from one more unit).
• Profit maximization occurs at the level where marginal cost equals marginal revenue.
• Financial statements: balance sheets (assets, liabilities, equity), income statements (revenues, expenses, profit).
• Cash flow statements track cash movement.
• Financial ratios analyze performance and position.

Business Environment

• All internal/external factors affecting a company's operations.
• PESTLE analysis: political, economic, social, technological, legal, environmental factors.
• SWOT analysis: strengths, weaknesses, opportunities, threats.

Management and Leadership

• Management: planning, organizing, leading, controlling resources.
• Leadership: influencing and motivating.
• Organizational structure: hierarchy, departments, reporting.
• Corporate culture: shared values, beliefs, norms.
• Motivation: encouraging employees.
• Communication: conveying information.
• Decision-making: selecting a course of action.
• Human resource management: recruiting, training, managing.

Marketing

• Marketing: creating, communicating, delivering value.
• Marketing mix: product, price, place, promotion (the 4Ps).
  • Product: goods/services offered.
  • Price: amount customers pay.
  • Place: distribution channels.
  • Promotion: communication activities.
• Market research: gathering and analyzing information.
• Market segmentation: dividing a market into groups.
• Target marketing: selecting segments to focus on.
• Positioning: creating a distinct image.
• Branding: creating a unique identity.
• Customer relationship management (CRM): managing interactions.

Operations Management

• Managing processes to transform inputs into outputs.
• Supply chain management involves managing the flow of goods, information, and finances across the entire supply chain.
• Inventory management includes raw materials, work-in-process, and finished goods.
• Quality control monitors customer expectations.
• Process design for producing goods/services.
• Capacity planning is used to determine the needed resources.
• Project management to achieve specific goals.

Finance and Accounting

• Financial accounting involves recording, summarizing, and reporting financial transactions.
• Management accounting provides financial information for decision-making.
• Budgeting plans future revenues and expenses.
• Cost accounting determines production costs.
• Investment appraisal evaluates potential investments.
• Working capital management manages current assets and liabilities.

Entrepreneurship

• Starting and running a business.
• Business plans outline goals, strategies, and financial projections.
• Funding comes from debt, equity, and grants.
• Risk management identifies and mitigates risks.
• Innovation creates new products, services, and processes.
• Social entrepreneurship addresses social or environmental problems.

International Business

• International trade involves exchange of goods and services between countries.
• Foreign direct investment (FDI) involves investing in businesses located in other countries.
• Exchange rates determine currency values.
• Cultural differences affect business practices.
• Global supply chains source materials and produce goods in multiple countries.
• International marketing adapts strategies to cultures and markets.

Business Ethics and Social Responsibility

• Business ethics guide business conduct.
• Corporate social responsibility (CSR) address impact on society/environment.
• Stakeholder theory considers interests of all stakeholders.
• Environmental sustainability minimizes environmental impact.
• Ethical sourcing produces goods/services responsibly.

Business Law

• Contract law governs agreements.
• Intellectual property law protects patents, trademarks, copyrights.
• Employment law governs employer-employee relationship.
• Consumer protection law protects consumers.
• Corporate law governs corporations.

Quantitative Methods

• Statistics analyze data and make inferences.
• Regression analysis models variable relationships.
• Forecasting predicts future outcomes.
• Decision theory makes optimal decisions under uncertainty.
• Optimization techniques find the best solution.

Current Trends in Business

• Globalization increases interconnectedness.
• Technology transforms business operations.
• E-commerce is growing rapidly.
• Social media is used as a marketing tool.
• Sustainability becomes more important.
• Data analytics improves business decisions.