Business Studies: Core Functions & Objectives

• Business studies is the study of the operations, and activities of a business

Core Business Functions

• Marketing involves identifying, anticipating, and satisfying customer needs and wants
• Production is the process of converting inputs (raw materials, labor, capital) into outputs (goods and services)
• Finance manages the flow of money in and out of a business, including budgeting, accounting, and investment
• Human Resources (HR) focuses on managing employees, including recruitment, training, and compensation

Business Objectives

• Survival: A short-term objective, particularly for new businesses or during economic downturns
• Profit Maximization: Aiming to generate the highest possible profit
• Growth: Expanding the business in terms of revenue, market share, or number of employees
• Social Responsibility: Operating in an ethical and sustainable manner, considering the impact on stakeholders and the environment
• Customer Satisfaction: Meeting or exceeding customer expectations to build loyalty and positive reputation

Business Structures

• Sole Trader: A business owned and controlled by one person, who receives all profits but is also personally liable for all debts
• Partnership: A business owned and controlled by two or more people, who share profits and liabilities
• Limited Company: A business that is a separate legal entity from its owners (shareholders), offering limited liability
• Franchises: Using another company's business model, under their brand, usually for a fee or percentage

External Environment

• Political factors include government regulations, tax policies, and trade restrictions
• Economic factors include interest rates, inflation, unemployment, and economic growth
• Social factors include cultural norms, demographics, and lifestyle changes
• Technological factors include advancements in technology, automation, and research and development
• Environmental factors include climate change, pollution, and resource depletion
• Legal factors include laws and regulations related to employment, health and safety, and consumer protection

Market Research

• Primary research involves collecting data directly from sources, such as surveys, interviews, and experiments
• Secondary research involves analyzing existing data, such as government statistics, industry reports, and market research databases
• Qualitative data is descriptive and subjective, such as opinions and attitudes
• Quantitative data is numerical and objective, such as sales figures and market share

Marketing Mix

• Product refers to the goods or services offered by a business, including features, quality, branding, and packaging
• Price refers to the amount customers pay for a product or service, including pricing strategies such as cost-plus, competitive, and value-based pricing
• Place refers to the distribution channels used to make products or services available to customers, including retail stores, online platforms, and wholesalers
• Promotion refers to the communication strategies used to inform, persuade, and remind customers about a product or service, including advertising, sales promotions, and public relations

Financial Statements

• Income Statement: Reports a company's financial performance over a period of time, including revenues, expenses, and profit or loss
• Balance Sheet: Reports a company's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial position
• Cash Flow Statement: Reports the movement of cash in and out of a business over a period of time, categorized into operating, investing, and financing activities

Business Strategy

• Cost Leadership: Aiming to be the lowest-cost producer in the industry
• Differentiation: Offering unique products or services that are valued by customers
• Market Segmentation: Dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics
• SWOT analysis: strengths, weaknesses, opportunities, and threats
• PESTLE analysis: political, economic, social, technological, legal, and environmental

Explores core business functions: marketing, production, finance and HR. Also describes the business objectives like profit maximization, growth and achieving customer satisfaction. It also highlights social responsibility.