INTRODUCTION TO BUSINESS
Assoc. Prof. Dr. Yasemin BAL
CHAPTER 1:
BUSINESS
WHAT IS BUSINESS?

Business is related with delivering goods or
services to the community.

Business includes managing sources.

Business can be done for basic purposes; to
make profit and to make money.

Business can be done solely to serve the public
without thinking about profit and making money.
WHAT IS BUSINESS?

Business consists of all activities to serve goods
and services to the community sometimes with
the purpose of profit to make money for surviving
and sometimes for primary objectives other than
profits.

The primary activity of business is the exchange
between buyers and sellers.
WHAT IS BUSINESS?
Business should be defined as an activity,
which provides society (or others) needed
goods and services at a profit.
Why do people buy and sell?
WHAT IS BUSINESS?

They do it to satisfy their
existing needs and wants.
But that exchange should
be continued because even
an already satisfied need or
want should be re-satisfied
over a period of time.

So business is a neverending process. Therefore
in every community big or
small, business will always
take place between its
members.
What are the things or products that are
subject to exchange ?

The goods that are produced
could be tangible such as
bread,
computers,
cars,
buildings etc.

Some businesses provide
services such as healthcare,
insurance,
entertainment,
cleaning, transportation etc.
Services
are
intangible
products.
PRODUCTS

Goods and services are commonly called
products in business life.
PROFIT
For many people, business is a profit-seeking
activitiy.
 Profits serve as the incentive for business people
to start and operate a business.


Profit is an expectation when doing a business.
PROFITS

When business people combine their resources
(labor, technology, knowledge, capital), they
pay for these and they expect more than they
spend in the creation of goods and services.

The difference between the revenues collected for
those goods or services and payments to create is
considered the reward and this is called profit in
business life.
ORGANIZATIONS

Organizations in business are any deliberately
established groups of people working together in a
systematic manner for a common purpose such as
companies, corporations, associations, units or
unions.
ORGANIZATIONS

Most of the organizations are set to get profit by
serving the necessary products in society.

These profit-seeking organizations are the
main group in business life.


However there are many other
organizations
set
to
do
business for their own primary
purposes other than making
money or making profit.
These organizations are called
non-profit organizations.

Government agencies, labor unions or
various institutions established in the form of
foundations to serve the public. They have
their revenues to cover all or part of their
expenditures.

Their basic purpose is to serve community.
BUSINESS TODAY

Information technology

Management practices

Elimination of barriers for free trade in the
world.
BUSINESS TODAY
ENTREPRENEURS:
BUSINESS PEOPLE WHO START BUSINESS

Business owes much to the entrepreneurs. Without
them business could not be formed.

Entrepreneurs are business people who take risks and
form businesses to provide goods and services that the
community needs while at the same time earning profit
as their reward.
ENTREPRENEURS:
BUSINESS PEOPLE WHO START BUSINESS

Entrepreneurs first notice an opportunity in
an industry.
Innovative
 Create new products, styles, techniques and
processes.
 Bring the resources together.
 Create new job opportunities.

CHARACTERISTICS OF ENTREPRENEURS:
MANAGERS:
BUSINESS PEOPLE WHO MANAGE THE BUSINESSES

The owners of the company set the objectives
to be accomplished.

Then they select a person who will combine all
the company’s resources to attain these goals.

A manager is a person who combines all these
resources (tangible and/or intangible) for
accomplishing the tasks.
MANAGERS:
BUSINESS PEOPLE WHO MANAGE THE BUSINESSES

There are two important issues that a manager
should consider:
the resources to be employed
 the tasks to be completed

Task completion is the primary responsibility of all
managers. They do not usually get involved directly in
performing these tasks. They lead people to do the
things.
MANAGERIAL FUNCTIONS

Planning

Organizing

Leading

Controlling
MANAGEMENT LEVELS
MANAGERS AND REQUIRED SKILLS

Managers are the ones who accomplish the
tasks by other people in an effective and
efficient way by utilizing the 4 function
(planning,
organizing,
leading
and
controlling) of management.

Their job is very complex and requires a
range of skills.
MANAGERS AND REQUIRED SKILLS

CONCEPTUAL SKILL:
It is an ability to see the organization
as a whole with its interrelated and
independent parts, departments and
divisions within the context of its
industry and the general environment.
This managerial skill requires a good
mission
identification,
strategic
thinking, strategy formulation and an
ability to create vision.
MANAGERS AND REQUIRED SKILLS
HUMAN SKILL:
It relates to the manager’s ability
to work with people. This skill is
equally important for the all
management levels and should
be present in all managers in the
organizational hierarchy.

A
manager’s
success
in
motivating,
communicating,
coordinating
and
resolving
conflicts between employees is
dependent on this skill.
MANAGERS AND REQUIRED SKILLS
TECHNICAL SKILL:
It is the ability of managers to
perform specific tasks.

This skill includes a mastery of
methods,
techniques
and
equipment
involved
in
functions.
In the lower management
level, this skill is very important
for performing tasks.
MANAGERS AND REQUIRED SKILLS
MANAGER ROLES
MANAGER ROLES

Informational Roles:
This role pertains to managers
collecting
and
disseminating
information
necessary
in
performing managerial functions.
They monitor
the necessary
information from many sources and
then disseminate this information
to other interested parties. They
also act as spokesperson to make
announcements.
MANAGER ROLES

Interpersonal Roles:
Performing their duties, managers
are also involved in interpersonal
relations with others in or out of the
company.
They act as figureheads and
present their company to public.
They also act as leaders to their
subordinates and direct them in
their tasks. Managers link people
and act as a liaison pin between
them.
MANAGER ROLES

Decisional Roles:
Managers always make decisions in
performing their tasks. This is the most
important and primary duty of managers.
They sometimes create new businesses
when they see new opportunities around.
This is their entrepreneur role in the
company.
Many conflicts occur within or out of the
company. One important role of managers
is the disturbance handler role. They
resolve numereous small or big problems.
MANAGER ROLES

Decisional Roles:
One important decisional role
relates to managers’ role as a
resource allocator. The scarce
respurces are allocated by the
managers in organizations.
Also, managers are always
involved in negotiating with
others and this is called
negotiator role.
HOMEWORK-1

Find
examples
of
entrepreneurs and explain
one of them.




Life of the entrepreneur
Business
Success
Failure