Understanding Business

Understanding Business

Understanding Business

Section 1

This section is the summary of the five lectures that were taught in the class. The first lecture talks about why businesses exist, and why employers do business. After detailed study of the first lecture it can be said that businesses exists to offer product and services to the market, through the utilization of the four factors of production i.e. land, labor, capital and entrepreneurs. As business students it is important to understand the business and to know what the employers or people running businesses want out of us. As mentioned in the lecture apart from the technical skills required for that business one should have detailed know how of the global business environment, posses strong interpersonal and organizational communication skills, should work as a team player and should always follow a problem solving approach.

The second lecture talks about the operational part of the business. As mentioned businesses operate to make profit, but it is not that simple as it involves a number of management approaches (e.g. theories by Fayol, Weber and Taylor) in order to make the most out of the four factors of production. The model followed by each business that is given in the second lecture tells us that assets of a business give out returns on the investments (equity) which is re-invested in the business and used to pay off any debts. Nonetheless, as mentioned above this is not that simple as there is more to a business that just assets, returns and debts. There are mission, vision and value of a business that are not seen in the model. Businesses devise strategies from these statements, and even their structures are according to their statements that they believe in or aim to achieve.

Business Strategy development and management of company is regarded as a generalized model of intentions and actions, integrating them into some kind of coherent whole in order to achieve strategic objectives and the main one - the sustainability of the firm. As the system of values ??or strings of customer value reflects the structure of building a business process in the company and, in particular, its basic ingredient - the organizational structure. Therefore, it is necessary to develop a methodology for constructing organizational structures, subject to different strategies and approaches in positioning the company in the market (Hitt, Ireland & Hoskisson, 2010, Pp. 318). As highlighted in the lectures and reading that were conducted applying the concept of marketing leads companies to target their efforts (business strategies) to meet the needs and desires of consumers why they should know what products consumers want, and why, how, when and where they buy (Mills & Law, 2005, Pp. 52).

As learned from the modules business strategy is the formulation of long-term plans and policies by a firm which interlock its various production and marketing activities in order to achieve its business objectives. Business strategies are the plans and actions necessary for a business to achieve a particular aim, and it is determined by strategic ...