principles of business online classes

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

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

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.

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.

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

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.

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.

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

Past Paper

May/June

2017#2 (a, ii)

Distinguish between the “finance and

human resource” areas of business. ( 4

marks)

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.

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.

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.

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.

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

Past Paper May/June 2017 #2 (b)

Describe each of the following functions of management

i. Delegating

Ii. Motivating

Iii. Coordinating

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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

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.

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.

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

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.

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.

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.

HOMEWORK

May/June 2014 #1 (a)

1. State 2 responsibilities of management to EACHofthe following:

i. Society

Ii. Government

Iii. Owners of the business

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).

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.

END OF CLASS