1.1 Business Activity

1. What is a Business?

=> Identify inputs, outputs and processes of a business.

Business: Decision-making organization involved in the process of using inputs to produce goods and/or services.

Inputs: Resources which a business uses in the production process. e.g. labour, raw materials.

Outputs: Goods and services produced from the business process.

2. Business functions - Production/operations, Marketing, Finance, Human resources/personnel.

=> Describe how business activity combines human, physical and financial resources to create goods and services.

Businesses must integrate all departments in order to satisfy consumer wants and needs.

external image LDPS%20-%20EEM%20Process%20Flow.png
(Source: http://www.ldp-solutions.com/Methodologies/VisioImages/LDPS%20-%20EEM%20Process%20Flow.png)

=> Explain the role of the different business departments in overall business activity.

Production/Operations: Convert raw materials into finished goods, ready to deliver to customers.

Marketing: Identify and satisfy consumer wants and needs.

Finance: Manage the organization's money.

Human Resources/Personnel: Manage the personnel of the organization.

3. Primary, secondary and tertiary sectors.

=> Explain the nature of business activity in each business activity of sector.

Primary Sector: Extraction, harvesting and conversion of land/natural resources.

Secondary Sector: Using raw materials and other resources for the manufacturing/construction of finished and useable products.

Tertiary/Service Sector: Provide service to private/corporate customers. e.g. bookstores.
external image business_sectors_Apple_iPod_2.jpg
(Source: http://www.asrevision.co.uk/revision/business/foundations_of_business/business_sectors_Apple_iPod_2.jpg)