Business Fundamental

Topics: Management, Non-profit organization, Marketing Pages: 8 (1394 words) Published: October 30, 2013
COSMOPOINT INTERNATIONAL COLLEGE OF TECHNOLOGY
KOTA KINABALU SABAH

UFS 102
CONTEMPORARY BUSINESS

CHAPTER 1:
BUSINESS FUNDAMENTALS

1.1 BUSINESS FUNDAMENTALS – AN OVERVIEW
1.1.1 Types of product
-business earns profits by providing products that satisfy people’s needs -these products could be in the form of tangible and intangible products a.
Tangible products
-a tangible product is the product that we can see, hold and describe its physical existence
-Exp, sandwiches, cars, books, computers and house
b.
Intangible products
-intangible products are those products that we cannot feel or hold -these products come in the form of services provided to consumers -Exp, such as dry cleaning, photo processing, performance by an artist and a check-up by a doctor, hotel, banking, airlines

1.1 BUSINESS FUNDAMENTALS – AN OVERVIEW
1.1.2 The goal of business
-the main goal for all business is to earn profit
-profit is the difference between what it costs to make the product (costs) and what customer pays for it (selling price)
Profit = Selling Price - Cost

Example:
A company spends RM5.00 to manufacture, finance, promote and distribute a product. The product is sold at RM5.50 per unit. Here, the cost is RM5.00 and the selling price is RM5.50.
Therefore,
Profit = Selling Price – Cost
= RM 5.50 – RM 5.00
= RM 0.50
#Therefore, the profit for a unit of product sold is RM 0.50

1.1 BUSINESS FUNDAMENTALS – AN OVERVIEW
In order to earn a profit, a person or business organization needs: -management skills to plan, organize, and control the activities of the business -recruit and develop employees so that it can make products

-marketing expertise to learn what products consumers need and want, and to develop, manufacture, price, promote and distribute those products -financial resources and skills to fund, maintain, and expand its business operations

-follow laws and government regulations
-act in an ethical and socially responsible manner
-adapting to economic, technological and social changes
1.1.3 Stakeholders
-refer to groups that have a stake in the success and outcomes of a business -stakeholders ensure that the business achieves and maintains its profitability, produces quality products, operates efficiently, is socially responsible and ethical in dealing with customers, employees, investors, government regulators, the community and society

1.2 BUSINESS ACTIVITIES
1.2.1 What are business activities?
-business activities link directly to people who manage it
Management, Marketing and Finance
-management involves coordinating employees and organizing them to work efficiently, and motivating them in order to achieve the company’s business goals
-marketing includes all the activities that provide goods and services that satisfy customers’ needs and wants
-marketers gather information and conduct research to determine what customers want - information gathered from the marketing research, marketers could plan, develop products, and make decisions on product pricing, product position, sales promotion in order to attract customers to buy the products

-finance refers to all activities concerned with getting money and using it effectively - people who work as accountants, stockbrokers, investment advisers or bankers are key players in the financial world

1.2 BUSINESS ACTIVITIES
1.2.2 Strength-Weaknesses-Opportunities-Threats (SWOT) Analysis -SWOT is the analysis on the business organization’s:
S – Strength
W – Weaknesses
O – Opportunities
T – Threats
a.

Strengths and weaknesses are the analysis within the business organization.
i.
Strength may be in the form of:
-the continuity of business activities, that is to say, will the business be sustainable in the next twenty years?
-how sensitive and responsive is the organization to new developments in the industry?
ii.
Weaknesses come in the form of:
-drawbacks within the organization
-lack of expertise in creating the required...
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