Business Management - 1781 Class Material 2024 PDF

BUSINESS MANAGEMENT - 1781 The branch of education that deals with a corporation’s planning, execution, oversight, and analysis are known as business management. This field of study covers the foundation of an organisation or business and several functional areas/levels such as production, finance...

BUSINESS MANAGEMENT - 1781 The branch of education that deals with a corporation’s planning, execution, oversight, and analysis are known as business management. This field of study covers the foundation of an organisation or business and several functional areas/levels such as production, finance, administrative, human resources, sales and marketing, and others. What is in a business management course outline? Learn how to adapt in different business environments. Learn how to recognize major success factors when running businesses. Learn how to understand the role of entrepreneurs and managers within business. Learn how to create and come up with alternative solutions for business growth. The purpose of the Business Management programme is to empower students as responsible entrepreneurs, business managers and leaders that create shared value in an innovative manner by equipping them with the knowledge, skills, and attributes for critical thinking. Although this course material is intended to serve as a foundation for further study, and for the corporate environment, it also enables graduates to establish their own enterprises and to manage it. A business management curriculum gives students advanced business knowledge and skills while also introducing them to modern business practices. The list of topics covered in the curriculum MODULES Module 1 Management Principles in a Business (resources and the environment) Module 2 Personal Management Module 3 Ethics and Social Responsibilities of a Business Module 4 Implementation of Planning Module 5 Organising and the Organisational structure of a Business Module 6 Staffing in a Business / Human Resource Management Module 7 Control in the Business (Financial Controls) 1 In this era of startup culture, business management is instrumental for aspiring entrepreneurs (young people). It covers all the essentials of business administration, management, and leadership. Businesses readily hire qualified and skilled graduates, and you must believe and trust in yourself that this subject elective that you have chosen will give you a competitive edge. Global Entrepreneurship Monitor (GEM): South Africa’s early-stage entrepreneurial activity has declined. This is among the many findings for the latest GEM Report released on 1 February 2024 for the 2023/2024 period. Fewer people than ever before are considering starting new businesses. The highest motive among South Africans to become entrepreneurs is out of necessity and to earn a living as jobs are scarce. South Africa lagged both global and African levels of entrepreneurial activity and the effectiveness of its support for entrepreneurial ecosystem development. “Risk comes from not knowing what you are doing.” “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Quotes from Warren Buffet 2 MODULE 1 – MANAGEMENT UNIT 1.1 - Introduction UNIT 1.2 - Responsibilities of Managers UNIT 1.3 - The Business Environment UNIT 1.1 - INTRODUCTION In this Module we look at business management as an essential function in running a business. You will learn about the different functions and tasks of management and the important role that management plays in a business. Whether you are the manager of your own business or a manager in a large organisation/corporation or business, you must be aware of the business environment in which your business operates. There are many factors, both inside (internal) and outside (external) your business that will influence the business operations, the business goals, growth and the mission statement of the business. Ultimately though, the success of any business depends on the effectiveness of its managers’ decision-making styles and decision-making processes. (Module 4) 1.1.1 THE MEANING OF MANAGEMENT What is the meaning of management in a business? While managers often view their work as task/supervisory in orientation, this view is an illusion. At the most fundamental level, management is a discipline that consists of a set of five general functions, namely POLC(S): planning, organising, leading, controlling and staffing. Business management is about the POLC(S) of the activities of a business to achieve the goals/objectives of the business. Management is an art and science of getting work done through people. It is the process of giving direction and controlling the various activities of the people to achieve the objectives of the business. How businesses organise and direct workflow, operations and employees. 3 One of the most important responsibilities of a manager is to organise, utilize and allocate the business’ resources effectively. Managers must integrate human, financial, physical, and technical resources to achieve the business goals of making profit and showing growth. NOTE: Nowadays, businesses also have to manage technology, program materials, information and entrepreneurship/business ownership risk. Business Resources i) Human Resources: a business’s human talent - the people who work for the business - are known as the business’s human resources (staff, employees, workers, or labour). ii) Financial Resources: financial assets that are available to a business. This is your own money/capital as the owner, profits (growth capital), money from loans (borrowed capital), or investments. iii) Physical Resources: the tangible assets owned by the business such as buildings, machinery and equipment for example that are used to make a profit; including natural resources (raw materials such as minerals or plants). iv) Technical Resources: any special or unique methods such as production processes, or inventions, could be products et cetera that a business uses that need licensing for example: spices or recipes or manufacturing licenses because of the raw materials used. What is a resource? A supply of something that is available for use, such as money, materials, staff, and other assets that can be drawn on a business in order to function effectively or when needed. Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable. What are entrepreneurial resources? Tangible and intangible assets that businesses use to exploit competitive imperfections in markets … including an entrepreneur’s own resources and abilities. 4 What is a patent? A patent is a right granted for an invention that is new and useful. A registered patent provides the owner of the invention with the exclusive right to exploit the product commercially for the life of the patent (exclusive right to produce and sell their inventions for 20 years). Once the term of protection has ended, the patented innovation enters the public domain. Examples: the telephone and the lightbulb … the iPhone and 3D-printer. Patents for information technology are a method businesses can use to protect their intellectual property from being replicated without permission. Examples: software programmes but not the coding. Interesting fact: the laws of nature, physical phenomena, and abstract ideas, or suggestions/ideas cannot be patented. What does tangible resources refer to in a business environment? Physical items owned by a company/business and the main type of assets that businesses use to produce their products and services. Examples: money (cash in some cases and loans), investments, land, equipment/machinery and inventory. What does intangible resources refer to in a business environment? Non-physical items that have a monetary value because they represent potential revenue. An intangible asset is a non-monetary asset that can’t be seen, touched and felt. Examples: intellectual property, brand reputation, goodwill and patents … consulting or education. Courts have decided that most monetary assets are intangible. What is a natural resource? These resources derived directly from nature and are utilised without any manipulation in their natural form. Examples: air, water, soil, minerals, plants et cetera. What is a man-made resource? Manipulated by humans. Examples: paper, rubber, plastic, brass, et cetera. 5 What is bootstrapping or bootstrap funding/capital? Bootstrapping is the process of funding and running a business using only personal finances or operating revenue. It is a form of financing that allows the entrepreneur to maintain more control over building a business from scratch without attracting investment or sharing equity (a business’s total assets minus the total liabilities) or borrowing money from banks. What is crowdsourcing? Crowdsourcing innovation can serve as a flexible, scalable and completely adaptable tool that can be used in a business to: - better understand the market, - manage/introduce new products, - improve processes and - identify creative solutions. What is a calculated risk? Taking calculated risks are one recipe for success. Don’t let the fear of failure stop the gratification of your future success. The chances of failure whose degree of probability has been reckoned (not gambled) or estimated before some undertaking is entered upon … divide the net profit (reward) by the maximum risk (the amount you could lose). “Only those who risk going too far can possibly find out how far they can go.” Managing risks is critical for every business. A risk management plan can minimise losses and prevent disruptions to business operations. It is crucial for any business/entrepreneur to identify possible risks and develop effective strategies to mitigate them, as this is key to achieving success. Taking calculated risks allows businesses/entrepreneurs to distinguish themselves from their competitors … it can trigger creativity, innovation and growth in the market. 6 Activity: Read the case study below and answer the questions. NOTE: You can expect questions from the class material to be applied to the Case Study in the tests and the examination. CASE STUDY - The Spinach King Lufefe Nomjana started his business in 2011 with just as little as R40 as capital that he saved, four bunches of spinach and his big idea. Growing up, he worked at various jobs while he was in school to help his family make ends meet. After matric, he tried a few casual jobs. In 2020 he began volunteering at a community garden. This is when it occurred to him that success comes when you help others. He also noticed that the community garden had a large supply of spinach. Lufefe realised the resources he needed to take his next step were right in front of him. He was born with an entrepreneurial spirit and a quick mind. In the past, he had tried his hand at various business ventures after leaving school, but nothing worked out due to a lack of investors and time to do proper homework regarding the ventures. Thinking about it, Lufefe decided to make use of the resources around him. He said to himself: “And what do I have?” … intelligence, a vision, R40 bootstrap cash, a neighbour that had an oven and spinach from the community garden. After making a mutually beneficial deal with his neighbour, he started baking loaves of spinach bread at night. He sold his bread during the day and soon he was producing more loaves. After experimenting with several recipes, he started making low-GI spinach bread, which turned out to be very popular. He then approached the local Spar in his community, who allowed him the use of their ovens to produce a larger quantity of bread, and his capacity increased to 70 %. He then started experimenting with other products. By now he was supplying the Spar and some local businesses’ workers with his spinach products; still wanting to supply some of his products to local schools. 7 When sales took off, he realised he needed staffing and a means to deliver the bread and other products. As an entrepreneur, he then started an online crowdsourcing campaign to raise funds for delivery scooters and branded T-shirts. He hired salespeople to sell his bread on a commission basis. He was still baking the bread himself. As the business was thriving, he opened his first bakery in Khayelitsha Spar in 2014 … the township where his journey started. Nomjana started his business because he wanted to promote the concepts of healthy eating and a healthy lifestyle without making people conform to new ways of eating but to make nutrition as part of people’s day-to-day lives. According to ‘Healthline’, spinach contains all six major classes of nutrients which packs high amount of vitamin C, vitamin K, folic acid, iron and calcium. Today, Lufefe’s company, Espinaca Innovations, produces a variety of spinach products including muffins, rusks, pizza bases and spinach juice and smoothies, together with 1500 loaves a day of his spinach bread. He is continuously developing new products, the latest of which is spinach chips. His business has expanded to include a bakery, a small casual day-time eatery, and a food delivery service. Lufefe plans to increase his output to 2000 loaves a day. With the love of his community, this entrepreneur aims to be a good role model to youngsters in the township to teach them how to grow vegetables that will help them live a good healthy lifestyle. His advice to young entrepreneurs is to identify the resources they have around them. Think about how they can use these resources to realise their dreams AND give back to their communities. He says, “Life is about having something to give so that you can also receive. And what is it that you have?” 8 CASE STUDY Q1 In the Case Study, Lufefe Nomjana, talks about another resource that he values. Can you identify this resource and elaborate on your identification. Q2 Explain why you think he calls this ‘specific need’ to survive in his business, a resource? Q3 List 4 other resources that Lufefe used to start and grow his business and to become successful. Give examples of how each resource has been utilized in this Case Study. Q4 What ‘capital’ did he invest in? Q5 Did Lufefe take calculated risks or did he gamble with some decisions made? Q6 How did his technical, human and conceptual skills help him as entrepreneur to start and grow his business. Q7 Did this entrepreneur had a long-term corporate socially responsible (CSR) goal in mind? Q8 What corporate socially investment programmes (CSI) did this entrepreneur envisaged? 1.1.2 THE IMPORTANCE OF MANAGEMENT As an entrepreneur starting off your business, you will most likely find yourself in the dual role of owner and manager. At first, you will represent the different levels of management with their related skills and tasks or functions. Later, as your business grows and you appoint staff/employees, certain functions will be delegated to different managers according to their area of specialisation. Managers are a very important part of a business; they perform essential tasks and functions necessary for a business to run smoothly. Effective and efficient management helps a business achieve its objectives by operating through the four primary tasks (POLC) described in the diagram below. Many businesses include ‘staffing’ as the fifth primary task (POLC)(S) as discussed in the introduction. 9 FIGURE: PRIMARY / MAIN MANAGEMENT TASKS (POLC) Additional important tasks carried out by managers include: - decision making, - communicating, - motivating, - coordinating, - delegating and - disciplining. 1.1.3 THE SKILLS OF AN ENTREPRENEUR Managers need to have certain skills to carry out their tasks/duties and functions. These skills fall into three categories and often a combination of all three may be needed to perform a particular task. As an entrepreneur, you will further develop these skills as you learn and grow your business. A skill is the ability to do something well because of training or practice. A characteristic refers to an attribute or quality of a person or object that makes them different from other individuals or things. (Self-study: entrepreneurial characteristics) i) Technical Skills (job knowledge) ii) Human Skills (working with people iii) Conceptual Skills (developing ideas and solving problems) 10  Technical Skills Human Skills Conceptual Skills Lower level of management Middle level of management Top level of management Management must ensure Your ability to manage the Management should be able the quality of a to envision the entire people who work for you product/service and that and with you, as well as the business in terms of where it employees perform to people you deal with outside currently is and where it is standard the business going Technical expertise or This skill includes the ability This skill helps you to experience to be ‘hands-on’ to communicate well with understand abstract ideas to know what the job entails others and think creatively These skills are needed to This skill includes the ability Your ability to be able to ensure quality of products to understand your formulate solutions must be and to be in control of a high employees and motivate able to formulate solutions standard of delivery them Example: give a practical Example: production Example: give a practical example manager must have the example above skills to understand the production process and is knowledgeable about the final products CASE STUDY CASE STUDY CASE STUDY NOTE: Lufefe has been NOTE: give an example from NOTE: Lufefe had a very baking bread himself; has the Case Study clear idea of how he would the experience and like his business to grow expertise and how it is going to expand (where it is going) What does entrepreneurial mean? Having to do with the creation and development of economic ventures. This terminology is often being replaced with ‘enterprising, go-getting, and pioneering. What does entrepreneurship mean? A mindset that is opportunity obsessed, holistic in approach and leadership balanced. 11 1.1.4 CHARACTERISTICS OF MANAGERS Some people naturally have the characteristics that enable them to be good managers, while others must work to improve certain qualities. Studies have shown that the 8 qualities listed can be linked to personality type and experience. A good manager needs the following qualities: ▪ confidence in their ability to succeed, ▪ the urge to achieve, ▪ energetic by nature, ▪ shows a desire for responsibility, ▪ shows preference for moderate/calculated risks, ▪ good at identifying opportunities, ▪ skilled at organising and ▪ requires immediate feedback in business activities and operations. A good manager should be able to: ▪ work well with others / work in a team, ▪ communicate effectively / be a good listener, ▪ have respect for co-workers / colleagues and all people, ▪ adapt to inevitable change, ▪ provide employees with honest feedback, ▪ show confidence and admit to mistakes to learn from them, ▪ solve problems, ▪ show good values (your belief of what is right and wrong); strong moral principles, ▪ show integrity and honesty in all interactions, ▪ be ethical in business operations and dealings and ▪ be socially and environmentally aware and responsible. UNIT 1.2 - RESPONSIBILITIES OF MANAGERS 1.2.1 PRIMARY RESPONSIBILITY OF THE LEVELS OF MANAGERS A manager’s responsibilities are closely linked to 2 areas: i) the level of management, and ii) the different functional responsibilities of managers within a business. 12 FIGURE: LEVELS OF MANAGEMENT AND THE RESPONSIBILITIES Most businesses are sub-divided into 3 levels of management, although we do find businesses that are having 4 or even 5 levels of management. Four levels of management: top-level managers, middle managers, first-line managers, and team leaders. These roles vary not only in their day-to-day responsibilities, but also in their broader function in the business and the types of employees they manage. Another example: executives, senior managers, middle managers and workers. Five levels of management: executives, effective leaders, competent managers, contributing team members, and highly capable individuals. 1.2.2 FUNCTIONAL RESPONSIBILITIES OF MANAGERS Businesses divide and group similar activities in the business by their basic functions, also, by the speciality. Example: all finance-related activities will be organised into the Finance Department. 13 A functional area is a department or group of personnel tasked with a specific business function. Typically, functional departments comprise teams of employees with similar skills and expertise. These departments allow businesses to integrate activities and tasks with similar logic and protocols. A functional area is an account assignment characteristic that sorts operating expenses according to functions. Example: Production and Administration. i) Finance Deals with the financial aspects of the business such as annual operating and capital budgets, assets, liabilities, credit and operational risks, and for assessing the business’s market exchange, et cetera. The department is responsible for preparing financial plans designed to procure funds and their optimum utilisation. This function is central to the business because it influences every other area of the business. ii) Marketing Focus on satisfying customer needs and the business’s target markets. This function looks at the pricing of products/services and how to make them available to customers (selling/distribution). The department is responsible to reach out to prospects, customers, investors and/or the community while creating an overarching image that represents the business in a positive light. iii) Human Resources (HR) Also known as personnel/staffing and deals with employee issues and staffing processes of the business, including finding, screening, recruiting, hiring, training, and supporting employees. There are 5 typical HR functions: talent management / compensation and benefits / training and development / compliance / worker safety. iv) Production Operations management is where the business’s resources such as raw materials are transformed into the final products or services. This is the core function of a business. Production consists of a process or turning inputs, such as labour and raw materials, into finished goods or services. 14 The 5 key/critical functions of production and control are: - forecasting and analysis, - capacity planning and management, - inventory management and decision-management, - production scheduling and - material/quality control and assurance. v) Logistics and Purchasing These functions are often combined into one department. Logistics deal with the packaging of the business resources and products. Purchasing deal with supplies and incoming resources needed for production and suppliers. Logistics in procurement provides a systematic management of the flow of goods and services from suppliers while ensuring the timely and cost-effective delivery of products. Logistics is part of the supply chain and manages forward and reverse merchandise flows. UNIT 1.3 - THE BUSINESS ENVIRONMENT Good managers ensure that the business takes advantages of all available opportunities and that the business can handle any threats. Managers must make good decisions that take into account the welfare of the business, and must always understand the environments that impact the business in various ways. There are two types of environments namely the i) internal and ii) external environments. An important part of being a good manager is knowing how to manage the impact these environmental factors will have on the business. The business environment, also known as the management environment, is made up of the factors that influence the activities of the business: customers, employees, technology, politics, global warming et cetera. 15 FIGURE: BUSINESS ENVIRONMENT OR MANAGEMENT ENVIRONMENT 1.3.1 INTERNAL ENVIRONMENT A business’s internal environment is composed of the elements withing the business (what goes on inside the business), including current employees, management and specially the business culture which defines employee behaviour. It is also known as the micro-environment and although some elements affect the business as a whole, others affect only the managers. The internal factors that impact the business consist of its formal organisational structures and functions, the management style, human resources, labour unions, the informal structures such as diversity/culture/inclusivity, and the physical and technological resources within the organisation. Factors in the internal environment can affect the performance of the business. 16  Formal organisation Elements withing the business such as its basic functions, management structures, resources, staffing, products and services, location, policies, and its mission / goals / values / corporate culture et cetera all influences the business. Example: the ethical values determine how you treat employees and conduct business deals. Informal organisation In every organisation there is an informal structure that co-exists within the formal structure. Example: employees get together to socialise, share common interests or to support and guide each other. This can have a positive or negative impact on the business culture … news and rumours can spread fast via the grapevine; it does affect the morale of employees. Organisational In many large organisations there exists a power play in specific politics situations where individuals unofficially try to influence others; when employees put their own interests ahead of those of the business, it can have a significant negative effect on the business and other individuals. Example: the current situation with ESKOM in South Africa. 1.3.2 EXTERNAL ENVIRONMENT All outside factors that can affect the business make up the external environment. The external environment is divided into two parts namely: i) the direct external environment also known as the market environment, and ii) the indirect external environment also known as the macro-environment. Managers and businesses do not have much control over these factors unlike with the internal factors. In the discussions to follow, we will look at examples of how these various factors impact a business. Did you know? inflation is the decrease in the value of money in relation to the goods it can buy over time. Did you know? interest rate is the cost of borrowing money, which is normally calculated as a percentage of the amount that has been borrowed (the loan). 17  Customers Customers have the buying power. They provide the business with revenue and in return demand satisfaction. A business must retain existing customers, and also attract new customers; the business must carefully consider customer needs and keep up with changing needs. As customer’s needs increase, they become more discerning with regards to the businesses they are willing to support. For example, many customers nowadays are more socially and environmentally conscious, and prefer to support ethical and socially responsible businesses. Suppliers Suppliers provide resources to a business; it is important to develop a good relationship with them. Suppliers can impact the smooth running of your business. For example, if one of your suppliers provides you with inferior quality raw materials (that you require to make your end product), this will negatively affect the quality of your product, which then impacts the sales of your product. It is important to source reliable, ethical and reasonably priced suppliers. Ensure that you pay your suppliers on time. Competitors You should always be aware of who your competitors are. Competitors who operate in the same marketplace as you strive for the same customers. Watch out for competitor price-cuts, better or improved services and products / product substitutes and new products. Managers need to keep an eye on the competition to keep up with or get ahead of competitors. Government Government can have a direct or an indirect effect. As one of the biggest consumers in South Africa, government can be a customer. They can solicit tenders and provide subsidies. Government also impacts a business by acting as a regulator, i.e. by putting into place laws and policies that businesses have to abide by, for example, the Consumer Protection Act that protects the rights of consumers. Businesses also must abide by local and provincial government’s operating and licensing regulations. Zoning laws affect the location of your business. Businesses pay taxes and levies specified by government. TABLE: ENVIRONMENTAL FACTORS Activity: Read the article below and answer the questions. ARTICLE – Big business threatens small guys … PRETORIA – Big business has moved into townships and is upsetting the township economy and threatening the livelihood of the thousands of people who depended on it. Big grocery retailers are establishing themselves in what has traditionally been a local business space, taking business away from the ‘small guys’, stakeholders said. “Small businesses are being elbowed out and economic opportunities and jobs are being snatched from them,” economist Lloyd Mashele said. Corner shop and spaza owners were more relaxed in the running of their business and did not care for glitz and glamour. “But when these big boys bring big buildings and flashy wrapping, they are able to lure unsuspecting customers,” said Mashele. This has left shop owners and hawkers in a financial dilemma. “They are forced to withdraw their services and watch their neighbours walk into these shops, and this goes against the plans announced by the government to grow the township economy,” the economist said. The possibility of unfair competition and unfair practices is the subject of a probe by the Competition Commission. It has set up an inquiry into big retailers and township traders. Commission spokesman Itumeleng Lesofe said the inquiry would, among other matters, look at the impact of the expansion, the diversification and consolidation of national supermarket chains on small and independent retailers. “It will also look at the long-term, exclusive leases on competition in the sector and the dynamics of competition between local and foreign-owned small and independent retailers,” he said. “Small businesses are dying a slow and painful death because there is no legislation to protect us,” said Soshanguve businessman Thebe Mashabane. “When the big retailers initially came, they promised to work with the community,” he said. “They employed the right quota during construction. But the selection process for shop employees threw us out,” he said; they lost out on the business opportunity and on job opportunities.” “What is sad is that our customers love the feel of ‘town’ that comes with shopping in big stores and spend more money on what they get for much less on their street. They even took taxis to the shops to buy bread and paraffin, thus, spending three or four times more than they would have if they had taken a walk down the road.” “The government has a free for all trade policy and that has done us in,” Mamelodi local business forum chairman said. Public submissions to the Competition Commission have been made and submissions have been received from firms involved in the grocery retail sector, the property market, finance institutions and suppliers. Businesses, trade associations, government departments, public entities, regulatory authorities, consumers, and other stakeholders were invited to provide information relevant to the inquiry. Source: extract: https://www.iol.co.za/business-report/economy/big-business-threatens-small-guys- 2058464 [Accessed 15/11/2020] ARTICLE QUESTION: You are one of the small township traders referred to in the article. Explain in detail (quoting examples from the article) how the following environmental factors can affect your business. Firstly, over the short-term and secondly, over the long-term. i) Competitors ii) Customers iii) Government or government bodies and acts iv) Political involvement / legal / law 1.3.3 INDIRECT EXTERNAL (MACRO) ENVIRONMENT  Example: economic recession (luxury products/services) Economical Example: inflation and interest rates What does GATT mean in business terms? Example: Trade Unions Political / Legal Example: Environmental laws / Labour laws Example: be aware of satisfying the society and industry in Societal / Cultural which your business operates Example: know your target market Example: be careful not to offend any culture, traditional practices, religion of individuals Example: physical environment (not harming the environment, Environmental think of the mining industry) Examples: corporate socially responsible practices/activities such as wasteland rehabilitation and the use of environmental- friendly products such as paper straws versus plastic straws in the food industry Example: keep up with technology to gain competitive edge Technological such as the eBay case study and AI and the WWW Example: global economy fluctuations International Example: wars and pandemics TABLE: THE INDIRECT EXTERNA (MACRO) ENVIRONMENT What is the GATT in the business world? The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas or subsidies. It can be seen as a treaty minimising barriers to international trade, of which the most crucial principle is trade without discrimination. NOTE: GATT no longer exist; has been replaced by the World Trade Organisation. REVISIT THE MODULE AND THE LEARNING OUTCOMES ✓ Define ‘management’ and the management activities/tasks: POLC(S). ✓ Discuss the different business resources. ✓ Define the terminology: ‘a resource’ / ‘entrepreneurial resources’ / ‘patents’. ✓ Discuss and elaborate on tangible and intangible business resource/assets and natural resources versus man-made resources. Give examples. ✓ What is bootstrap funding? What is crowdsourcing? What is a calculated risk? What is the GATT? ✓ Case Study: The Spinach King - do reading and answer the questions. ✓ List the different skills of an entrepreneur (self-study: characteristics or traits of entrepreneurs). ✓ Explain the following terminology and give examples: ‘entrepreneurial’ and ‘entrepreneurship’. ✓ Define and discuss the characteristics of managers, also, their qualities, their tasks and responsibilities. ✓ Discuss and explain the primary responsibility of the different levels of managers; elaborate on how the levels vary because of responsibilities. ✓ Briefly explain the different functional areas in the study material. ✓ What do we mean in business terms by ‘internal environments’ and what is really happening in these environments (give practical examples). ✓ Why should managers be proactive when it comes to external environments? ✓ Elaborate on the direct and indirect factors/elements in the external environment of businesses. ✓ Article: Big business threatens small guys … - do reading and answer the questions as discussed in class.