Introduction to Business Administration Slide 2

Introduction to Business Administration

Session 2 – Definitions and Concepts

Session overview
•The course provides a basic understanding of the concepts and definitions of business.
•It gives a general understanding of the management issues in business as well as the types of business one can proceed into.

What is Business?

•A business is an organized, profit-seeking activity that provides goods and services designed to satisfy customers’ needs (Bovee, Thill and Mescon 2010).
•A business is any organization that strives for profits by providing goods and services that meet customer needs (Fry, Stoner and Hattwick 1998).

The objective of Business

•To make a profit.
•Business is a way of life.
•Business provides opportunities for gaining other forms of satisfaction.


Historical development of Business in Ghana
•Business in Pre-colonial Ghana.
•Business in Post-colonial Ghana
•Business in Modern Ghana

Goods Producing Businesses vrs. Service Businesses

Characteristics of Goods Producing Businesses
•Goods producing businesses produce tangible goods by engaging in activities such as manufacturing, construction, mining and agriculture.
•It is difficult to start a goods-producing business without substantial investment in building, machinery and equipment.
•Goods-producing businesses are capital-intensive

Service

•A service is defined as an intangible product, performance of which mainly requires human effort or work.
•Examples include, banking, health care and restaurants.

Characteristic of Services

•Services are intangible.
•Service performance (delivery) and consumption are inseparable.
•Services are perishable
•Performing services is highly labor-intensive.
•Services tend to be heterogeneous.
•Services are performed rather than produced.

The Economic and Social roles of Businesses

•It is impossible to evaluate the overall contributions and importance of businesses. The simple reason for this being that their contributions vary. Some contributions that stand out though include;

•They provide jobs
•They introduce new products
•They inject a considerable of money into the economy
•They add greatly to the rich variety of goods and services available to consumers
•Contribute to society’s values and stability
•Are a rich source of new ideas and innovations in products and services,



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