Part-2-Week-1-Introduction-to-Business-Environment (1).pdf

Part 2-Week 1: Introduction to Business Environment Part 2 of this week's learning session will provide an introduction to the framework of understanding the business as a preliminary stage to start focusing on the framework of understanding economics. We'll explore key concepts in business, organi...

Part 2-Week 1: Introduction to Business Environment Part 2 of this week's learning session will provide an introduction to the framework of understanding the business as a preliminary stage to start focusing on the framework of understanding economics. We'll explore key concepts in business, organizational structures, and how businesses interact with their environments. Learning Outcomes 1 Module Descriptors By the end of this session, you should be able to appreciate the importance of reading more than once the module descriptors particularly the four learning outcomes and the indicative content. 2 Business Organization Characteristics You should be able to distinguish the main characteristics necessary to define the meaning of a business organisation. 3 Business Process You will identify the significant stake that shape the input-output business process and appreciate the importance of effectiveness and efficiency in the success of the business. 4 External Environment You will consider that business cannot run in isolation but is part and parcel of an external environment. First Key Question What is a Business? This is our first key question to explore. We'll examine different definitions and aspects of what constitutes a business. Commercial Enterprise A business is usually defined as a commercial enterprise. We'll unpack what this means in the following sections. Key Components We'll look at the various components that make up a business, including its goals, structure, and activities. Defining Commercial 1 Commerce Definition COMMERCE is concerned with taking goods from producer to the ultimate consumer. 2 Commerce Activities Requires a large number of activities like, buying, selling, transportation, insurance, warehousing, banking, advertising, communication, etc. 3 Core Activities Buying and selling are the main activities whereas all other mentioned here along with these are activities that only facilitate these two basic activities. 4 Trade and Auxiliaries The buying and selling activities form part of TRADE. The facilitating activities are called AIDS TO TRADE or AUXILIARIES TO TRADE. What is an Enterprise? Definition Key Components Outcomes An enterprise is a management Enterprises involve organization, The focus is on achieving of an organization seeking to management, and goal-oriented specific outcomes or objectives achieve an outcome. activities. through organized efforts. Comprehensive Business Definition 1 Organisation Business is an organisation bounded by rules and consisting of ordered trading activities. 2 People It involves skilful people busy in enterprising (managing/transforming/processing) their input and output (product/services). 3 Location Operates in a particular geographical or virtual location. 4 Objectives Shaped by a set of short, medium and long term objectives that secure its continuity and returns on investment. Business Goals Profit (Bottom-line) Growth Market Leadership Customer Presentations are Presentations are Presentations are satisfaction communication tools that communication tools that communication tools that Presentations are can be used as can be used as can be used as communication tools that demonstrations. demonstrations. demonstrations. can be used as demonstrations. What do Businesses Do? Core Activities Businesses engage in various activities to achieve their goals and serve their customers. Value Creation They create value through products, services, or other offerings. Market Interaction Businesses interact with markets, customers, and other stakeholders. Business Process Insights Input 1 Businesses take in resources and raw materials. Processing 2 They transform these inputs through various processes. Output 3 The result is finished products or services for customers. Critical Factor in Business Gains vs Losses The Critical Factor in all these processes is making sure that the GAINS are far more than the Losses! Profitability Ensuring profitability is crucial for business sustainability. Efficiency Maximizing efficiency helps in achieving more gains than losses. Business in Context 1 Not an Island 2 Open Systems 3 Environmental Business enterprises cannot Open systems interact with Context function in isolation. their environment. Business enterprises exist in and are surrounded by an 'environment' – the business or organisational environment. Managing Organisation & Environment Internal Management External Environment Balance Focuses on managing the Deals with managing the Emphasizes the need to balance internal operations and organization's interactions with internal capabilities with resources of the organization. its external environment. external demands and opportunities. Business Environment Overview Economic Factors Political Factors Social Factors Technological Includes economic Government policies, Demographics, cultural Factors growth, inflation rates, regulations, and political trends, and consumer Advancements in and exchange rates. stability. behavior. technology affecting business operations. Understanding Business Terms in Business Economics Welcome to Session 2 of our business economics course. In this 45- minute interactive lecture, we will introduce students to the basic framework of business in business economics, focusing on how businesses function within an economic environment. Through group discussions and case studies, we'll explore key concepts like the input- transformation-output process, stakeholders, and business goals. Session Overview 1 Objective To introduce students to the basic framework of business in business economics, focusing on how businesses function within an economic environment. 2 Time 0:45 - 1:30 3 Activity Interactive lecture with group discussions 4 Materials PowerPoint slides on business frameworks; diagrams of input-output processes Introduction to Business Framework Business Definition Discuss what a business is (commercial enterprise), focusing on its input-transformation-output process. Key Components of a Business Inputs (resources like labour, capital), transformation (production processes), and outputs (goods and services). The Role of the Business Environment 1 Business Interactions 2 Stakeholders Businesses do not operate in isolation but Explain the different stakeholders, including interact with various stakeholders (customers, owners, employees, and consumers. suppliers, regulators). Key Business Goals Profit One of the primary goals for most businesses. Growth Expanding the business operations and market share. Customer Satisfaction Meeting and exceeding customer expectations. Market Leadership Becoming a dominant player in the industry. Business Efficiency and Effectiveness Resource Management 1 Effective allocation and utilization of resources. Efficiency 2 Maximizing output while minimizing input. Effectiveness 3 Achieving desired outcomes and goals. Group Discussion: Business Components Task Objective Outcome Break students into groups and ask To apply the business framework Enhanced understanding of them to identify the key inputs, concepts to real-world examples. business components through transformation processes, and peer discussion and practical outputs for a business they are application. familiar with. Case Study: Coffee Shop Business 1 Inputs Coffee beans, milk, equipment, staff 2 Transformation Brewing coffee, preparing drinks 3 Outputs Coffee drinks, pastries, customer service Coffee Shop Stakeholders 1 Owners 2 Employees Individuals or companies who own the coffee Baristas, managers, and other staff members. shop. 3 Customers 4 Suppliers Regular patrons and new visitors to the coffee Coffee bean producers, equipment providers, and shop. other vendors. Coffee Shop Business Goals Profit Generating sustainable income and return on investment. Customer Satisfaction Providing high-quality coffee and excellent service. Growth Expanding to new locations or introducing new product lines. Community Engagement Becoming a valued part of the local community. Coffee Shop Efficiency and Effectiveness Resource Management 1 Optimizing inventory and staff scheduling. Process Efficiency 2 Streamlining coffee preparation and service processes. Customer Satisfaction 3 Consistently meeting or exceeding customer expectations. Applying the Framework Task Process Outcome Present a simple real-world Students identify inputs, Practical application of business business (e.g., a coffee shop) and transformation processes, economics concepts to a relatable ask students to apply the business outputs, stakeholders, and goals example. framework to it. for the coffee shop business. Session Recap 1 Business Framework Reviewed the input-transformation-output process and key components of a business. 2 Business Environment Discussed the role of stakeholders and business interactions. 3 Business Goals Explored various objectives including profit, growth, and customer satisfaction. 4 Practical Application Applied concepts to a real-world example through group discussion and case study. Break Time Time 1:30 - 1:45 Duration 15 minutes Purpose Allow students to refresh and prepare for the next session.