1 Introduction to Business Management

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
    1. External environment
    2. Introduction - PEST/STEP analysis
    3. The legal and political environment - introduction
    4. The legal environment
    5. Political stability and instability
    6. The social and cultural environment - introduction
    7. Social responsibility
    8. Demographic trends
    9. The technological environment - introduction
    10. The Internet and the World Wide Web (www).
    11. E-commerce
    12. Technological change
    13. The ecological environment
    14. The economic environment - introduction
    15. Economic growth
    16. The Business Cycle
    17. Inflation
    18. Exchange rates
    19. Unemployment
    20. Interest rates
    21. Government fiscal policy
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

AO2 You need to be able to: Demonstrate application and analysis of knowledge and understanding Command Terms: These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate: Analyse, Apply, Comment, Demonstrate, Distinguish, Explain, Interpret, Suggest

AO4 You need to be able to Demonstrate a variety of appropriate skills. Command Terms These terms require you to demonstrate the selection and use of subject-specific skills and techniques: Annotate, Calculate, Complete, Construct, Determine, Draw, Identify, Label, Plot, Prepare

STEEPLE -T Technological change

Technological Change has had massive impacts on how business operates today, such as in:

• Consumer and producer products
• Raw materials
• Production processes
• Marketing methods
  

Let's look at each of these in turn.

Consumer Products

The application of science and technology means that new products and services are forever entering the market. I am sure you can think of many new products brought about through technological developments:

Computer Market

Mobile Phone Market

Software and Games

Heart Rate Monitors

What can you think of?

The possibility of 'first mover advantage' is a strong motivator for many businesses. Much time and money is spent on developing new ways of reducing the period that passes between the first idea and the actual appearance of the product and advantages that correct technical applications can make to product life cycles.

Raw Materials

Adapting new, or previously unused materials can reduce costs, improve quality and boost productivity.

Genetically modified (GM) foods are foods derived from genetically modified organisms (GMOs). Genetically modified organisms have had specific changes introduced into their DNA by genetic engineering techniques. There is some controversy about the techniques behind this. Critics object to GM foods on several grounds, including ethics, safety issues, ecological concerns, and economic concerns because these organisms are subject to intellectual property law.

Suggested future applications GMOs include drugs in food, such as bananas that produce human vaccines against infectious diseases, metabolically engineered fish that mature more quickly, fruit and nut trees that yield years earlier, foods no longer containing properties associated with common intolerances, and plants that produce new plastics with unique properties.

Nanotechnology: The next industrial revolution

However, even more significant than GM technology is the miniaturisation of the materials we use. You are probably more than familiar with the downsizing of technology. Data memory cards for use in cameras, MP3s etc have becoming increasingly small at the same time that their memory capabilities increase. However, these familiar objects are about to be eclipsed by the developments in nanotechnology - by something we cannot see.

Nanotechnology is the science of building machines at a subatomic level. When K. Eric Drexler popularized the word 'nanotechnology' in the 1980's, he was talking about building machines on the scale of molecules, a few nanometers wide-motors, robot arms, and even whole computers, far smaller than a cell.

This new technology offers huge opportunities for business in the creation of machines and processes beyond our imagination a couple of decades ago. Machines that function at a molecular level, medical applications that are astounding and even solutions to climate change with re-engineering of nature. However, you may be surprised to know that nanotechnology is already in everyday products on sale, such as:

• Sunscreens containing nanoparticles of zinc oxide
• Self-cleaning glass in conservatories using nanoparticles to break down and loosen dirt
• Clothing coated with nanoparticles, give better protection from UV radiation. and help repel water and other materials, making the clothing stain-resistant.
• Scratch-resistant coatings on everything from cars to eyeglass lenses
• Tennis racquets - the VS Nanotube Power racket. Is made of carbon nanotube-infused graphite, meaning the racket is very light, yet many times stronger than steel

Production Processes

Technology has been applied to the ways in which products are designed and manufactured.

Computer-aided design (CAD) employs computer technology for the design of real and virtual objects and in the drafting of technical and engineering drawings, in automotive, shipbuilding, and aerospace industries and industrial and architectural design. CAD techniques are also used in the entertainments industry to produce computer animation for special effects.

CAD is an input into:

Computer-aided manufacturing (CAM), which is the use of computer software to control tools and machinery in manufacturing as well as assisting management systems, transportation and storage. The primary purpose of CAM is to speed up the production process while introducing greater precision in cutting and moulding to minimise waste and reduce production costs.

Click to Go on a virtual visit to the Futuristic Volkswagen factory in Germany

Marketing Methods

In marketing, the Internet is now a major way of reaching both current and potential customers. Communications are virtually instantaneous to anywhere on the globe. Stock control and financial records can be kept electronically, allowing for easier access and faster response to change. What do you know about:

Social network marketing

Cloud Computing

Paypal

e-commerce