principles of business online classes
TRANSCRIPT
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PRINCIPLES OF BUSINESS ONLINE CLASSES
• SCHOOL: CTS COLLEGE PRIVATE SECONDARY
SCHOOL
• SUBJECT: PRINCIPLES OF BUSINESS
• TOPIC: THE NATURE OF BUSINESS
• LECTURER: NARACE RAMDASS
• WEEK:4 - 28/9/21
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TOPIC TRACKER
• TOPIC: Nature ofBusiness
• Section 1 of the Principles of Business
Syllabus
SUB-TOPICS
• Functional Areas ofBusiness
• Stakeholders in Business
• Role and Function of Stake holders in
business
• Ethical and Legal issues in the
establishment and operations of a
business
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LEARNING OBJECTIVES
• BYTHE END OF THIS SESSION STUDENTS SHOULD BEABLETO:
• 1. Identify and Explain the Functional areas of a business.
• 2. Identify and Explain the various stakeholders in business.
• 3. Identify and Explain the role and function of each stakeholder in business.
• 4. Identify the ethical and legal issues in the establishment and operations of a business.
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FUNCTIONAL AREAS OF BUSINESS
• Departments in a business organization are structured according to
certain functions. The departments of various organizations will differ
depending on the type of business. In the following slides are the main
functions that tend to be general to most organizations.
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FUNCTIONAL AREAS OF BUSINESS
Production
•The production department is responsible for transforming raw materials into
finished products. They are also responsible for quality control to ensure that required
standards are met.
Finance/Accounts
•The accounts department makes and receives all payments on behalf of the business
and records all financial transactions
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FUNCTIONAL AREAS OF BUSINESS
Marketing
•This department creates awareness for the firm products and motivates consumers to
buy. They also carry out market research to identify customer's needs.
Human Resources/Personnel
•The human resource department recruits and selects staff for the business organization. They are also responsible for staff training and welfare.
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FUNCTIONAL AREAS OF BUSINESS
• The Purchasing Department
•This department is responsible for the purchasing of the firms raw material, stationery and goods for
re-sale.
• Customer Service/ Customer Relations Department
•This Department bridges the gap between a business and its customers. it deals with customers'
queries, advising and assisting customers to place orders and handling customers' complaints.
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FUNCTIONAL AREAS OF BUSINESS
• Legal Department
•This department is concerned with legal problems that might arise for the company. For example,
compensation for employees and customers, who have brought lawsuits against thecompany.
• Research and Development (R&D)
• This department is involved with research to explore ways of improving the company's existing
products, developing new ones and identifying efficient processes to increase production. This
department works closely with the marketing department as products developed _must satisfy
consumers' needs
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Past Paper
May/June
2017#2 (a, ii)
Distinguish between the “finance and
human resource” areas of business. ( 4
marks)
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May/June 2017#2 (a, ii) Answers
Finance/Accounts
•The accounts department makes and receives all payments on behalf of the
business and records all financial transactions
Human Resources/Personnel
•The human resource department recruits and selects staff for the business organization. They are also responsibleforstaff training and welfare.
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FUNCTIONS OF MANAGEMENT
1. PLANNING
All managers must plan, that is, setting out steps for the attainment of future organizational
objectives. It involves formulating the policies and programmes for the firm. It is an outline or
guide of what has to be done.
2. ORGANIZING
Organization reduces cost, time, chaos and conflicts. Managers must obtain all the necessary tools,
machinery and personnel for each task and arrange all tasks so that they are done in the most efficient
manner.
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FUNCTIONS OF MANAGEMENT
3. DIRECTING
Managers must guide subordinates by giving them instructions to perform the tasks assigned.
4. DELEGATING
Delegating duties involves giving others (e.g. supervisors) the authority to have specific tasks completed
through the management of others. Therefore, supervisors will ensure that workers complete tasks
assigned. Delegation reduces the workload of the manager.
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FUNCTIONS OF MANAGEMENT
5. CONTROLLING
Managers must continually measure the activities of subordinates, ensuring that all activities conform
to plan.
6. COORDINATING
Managers must bring together all the various organizational tasks so that the organization may
function harmoniously.
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FUNCTIONS OF MANAGEMENT
7. MOTIVATING
Managers must inspire workers to perform their tasks well.
8. COMMUNICATING
This is passing on information to workers as well as getting feedback from them on how they feel
about company policies and other issues
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Past Paper May/June 2017 #2 (b)
Describe each of the following functions of management
i. Delegating
Ii. Motivating
Iii. Coordinating
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May/June 2017 #2 (b) Answers
4. DELEGATING
Delegating duties involves giving others (e.g. supervisors) the authority to have specific
tasks completed through the management of others. Therefore, supervisors will ensure that
workers complete tasks assigned. Delegation reduces the workload of the manager.
7. MOTIVATING
Managers must inspire workers to perform their tasks well.
6. COORDINATING
Managers must bring together all the various organizational tasks so that the
organization may function harmoniously.
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RESPONSIBILITIES OF MANAGEMENT
• Management must be aware of their responsibilities to the various
groups that they interact with for the successful running of the business.
• l. To the owners of the business (this also includes shareholders)
a. Managers are expected to ensure efficiency in all areas of the business.
b. to maintain the assets and the good name of the business.
c. to be completely accountable for the operations of the business.
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RESPONSIBILITIES OF MANAGEMENT
• 2. To employees •
•a. Managers must pay adequate wages.
• b. provide good working conditions.
•c. ensure all workers are treated fairly. d. to motivate workers.
• 3. To customers •
•a. Managers must ensure that products are of good quality and are reasonably priced.
• b. to be truthful in advertising claims
. c. to provide after sales service and an avenue for customers to complain
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RESPONSIBILITIES OF MANAGEMENT
• 4. To the society-
of harmful•a. Managers must find ways to reduce harmful air pollution and the discharge
waste created by the production process into rivers and seas.
• b. conserve natural resources.
• 5. To the government-
a. Management should adhere to various government legislation and regulation.
b. Ensure taxes are paid.
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STAKEHOLDERS AND THEIR ROLE IN BUSINESS ACTIVITIES
• Business owners must be aware of the various groups that they interact with for the
successful running of the business.
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OWNERS
•A business may be owned by a single individual (a sole trader), partners or by a group
of shareholders forming a company.
• Role of Owners
•They must provide the resources that are required for the business to operate efficiently.
These include the employment of workers, identifying suitable premise and procuring
machinery, equipment and raw materials. They must make timely decisions to ensure that
the business remains profitable. They must motivate employees to perform well.
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EMPLOYEES
• They are employed to carry out assigned tasks to achieve the company's objectives.
• Role of Employees
•Employees must work efficiently to accomplish tasks assigned. Accomplishing tasks may
require teamwork and therefore employees must have good interpersonal skills. Employees
must adhere to the rules and relations of the company.
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CUSTOMERS
•They are the supporters of businesses in the economy. They purchase goods and services
to satisfy their needs and wants.
• Role of Customers
• They assist businesses in identifying the goods and services to be produced based on their
demands. They also help business to identify changing trends in the market and so prepare
business operators for future demands.
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GOVERNMENT
• They are the managers of the economy within which the business operates.
• Role of Government
• Regulate business activities to protect consumers. Government agencies ensure product standards
as well as that various legislations are adhered to ensure the protection of consumers' rights
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SOCIETY
• Businesses must be aware of the society as a whole, how its activities affect it and not only those
who are customers.
• Role of Society
•The production process may cause air pollution and discharge of harmful waste into rivers and
seas. The society keeps businesses in check by making them aware of their impact on society.
They write letters to the company and the media and speak on talk shows.
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Past Paper Jan
2017 #1 (d)
Explain one way in which each of the
following stakeholders is important to a
retail business.
i. Producers
Ii. Consumers
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Jan 2017 #1 (d) Answers
Producers are important to a retail business since they supply the products
which the retailers sell, if the don’t supply on time then the retailer is put at
a disadvantage.
Consumers are important to retail business since their spending determines
how much profit the retailers will make, they also give retailers vital
information on what they like by their spending patterns.
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FUNCTIONS OF A BUSINESS
l. To produce high quality goods and services that will satisfy needs and wants.
Entrepreneurs enter business to make profits. They must be very keen in identifying those goods and
services that will create high demand make profits.
2. To create employment
Business will need all categories of workers to carry out the various tasks required to achieve its goals.
If the business is profitable and expands then more workers will be needed for its operations.
3. To make a profit
The reason for the establishment of a business is to make profits. If businesses are not profitable, its
owners will not be encouraged to continue operating. Profits are used to reinvest in the business for
its expansion.
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ROLE OF A BUSINESS WITHIN A COMMUNITY
Corporate citizen is the term used to describe the responsibilities that businesses have within
their environment. As a good corporate citizen business must strive to have a good relationship
with their community.
• Good corporate citizenship includes:
• 1. Support for the community through community projects, sports and youth clubs.
2. Being environmentally aware by reducing pollution
3. .Providing job opportunities for community members e.g. a holiday work programme
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ETHICAL AND LEGAL ISSUES
•Business owners are required to obey all legislation concerning the operations of a business. These include,
paying taxes, business registration, obtaining licenses when required etc. Business owners should also operate
their business based on integrity. This involves:
1. Environmental awareness -- reducing pollution and harmful effluents in the rivers and seas.
2. Avoiding tied selling (marrying of goods)
3.Misleading advertising (untruths about goods advertised) - Untrue sale price - For example, writing the
word sale on items for which the price remains the same.
4.The use of market dominance to squeeze firms out of the industry- For example large firms may drop the
price of their goods so low that small firms are unable to compete with them.
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CONSEQUENCES OF UNETHICAL AND ILLEGAL PRACTICES
• Illegal business practices will result in legal consequence for business. This may include
large fines the loss of the business.
• Legislation also protects consumers, competitors and society from unethical practices of
a business.
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SUMMARY
• IN TODAY’S SESSION WE LOOKED ATTHE FOLLOWING:
• 1. Functional areas of a business.
• 2.The various stakeholders in business.
• 3.The role and function of each stakeholder in business.
• 4. The ethical and legal issues in the establishment and operations of a business.
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HOMEWORK
May/June 2014 #1 (a)
1. State 2 responsibilities of management to EACHofthe following:
i. Society
Ii. Government
Iii. Owners of the business
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HOMEWORK
May/June 2014 #2 (b)
i. Describe 2 unethical businesspractices (4 marks)
ii. Outline 2 consequences of unethical business practices ( 4 marks)
May/June 2015 #2 ( a, i)
1. List 4 functions of management (4 marks).
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NEXTWEEKS TOPICS
• Principles that must be adopted in the establishment and operation of a business.
• Consequences of unethical and illegal practices in business.
• Describe the careers in the field of business.
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END OF CLASS