Business Management 1A
COBMA1
Week 2 Lesson 1
Disclaimer
Please note that the content made available on myLMS may deviate
slightly from what is covered in lecturer-led sessions. However, the
material on myLMS, along with prescribed textbooks and any other
designated learning resources, constitutes the compulsory content
students are expected to consult and prepare for assessments.
Eduvos and the Flipped Classroom
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2
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Before this lecturer-led session
During this lecturer-led session
After this lecturer-led session
At home, in your self-study time, you
During your lecturer-led session(s), you will
Depending on how difficult this lecturer-led
worked through myLMS content to prepare
engage with your peers and lecturer in
session is, your lecturer may recommend
you for this lecturer-led session. You have
active learning. I.e. you will have an
some concepts to revise for this week's
completed any practice activities and
opportunity to ask your questions, to
learning opportunities. Then you will focus
prepared any questions you may still have
debate topics, and to practice working
on the following learning opportunities on
on the content. The lecturer-led session will
through the technical aspects of what you
myLMS in your self-study time to prepare
not be a traditional lecture.
learnt at home. You will be exposed to
for the next lecturer-led session(s).
higher-order thinking activities. Your
lecturer will guide you on what to prepare
before attending your next session.
Thank you for preparing for this lecture
Let’s recap the myLMS learning activities that helped you prepare for this lecture
What will be covered in the lecture-led session:
Learning Outcome
Assessment Criteria
1.2. Discuss the legal nature of business organisations.
1. Explore the context of
business.
1.3. Analyse business environments.
1.4. Explore the aim of achieving competitive advantage and
sustainability.
1.5. Explain the responsibilities of a business.
4. Analyse the main
functional areas of
business.
4.2. Analyse different industry sectors and kinds of
organisations.
4.3. Explain the interrelationships between the main functions
in a business, such as production, finance, marketing, and
support functions.
4.5. Explore the purpose and integrative role of a business
plan.
What will be covered in the rest of today’s session?
What will be covered in the lecture-led session:
The Role of the Entrepreneur in
the Economy
These opportunities can include the development of new
products, services or production processes, or taking existing
products and services and implementing new strategies, new
markets or new organisational forms that did not previously exist.
The entrepreneur discovers and creates business opportunities.
Successful young South African entrepreneurs (p. 22)
Activity: Reflection (p. 23)
Activity
1. What are the key characteristics of a
successful entrepreneur?
2. Why do you think these traits are important
for running a business?“
3. Provide an example of a real-life
entrepreneur who took a significant risk,
and explain how it paid off?
Characteristics of Successful
Entrepreneurs
Barringer, B. R. and Ireland, R. D. 2019. Entrepreneurship: Successfully Launching New Ventures. 6th edition. Pearson Education Limited. Print ISBN: 9781292402826. eISBN: 9781292402871
Key Characteristics of Successful
Entrepreneurs
1. Prior Industry experience
2. Cognitive factors
3. Social Networks
4. Creativity
Key Characteristics of Successful
Entrepreneurs
The Entrepreneurial Process
• Entrepreneurship is the skill that allows individuals to
identify opportunities that exist in the consumer market.
• These ideas are developed and become successful
businesses that provide products or services to
consumers, thereby advancing their lives and allowing
them to have more time available for other things
important to them.
• Example of internet vs library.
The Entrepreneurial Process
The Entrepreneurial Process
Step 1: Idea generation
• There is a difference between idea generation and opportunity.
• Consumers are the best source of information for ideas and
opportunities as they use a range of different products and services
daily and might point you, the entrepreneur, in the right direction.
The Entrepreneurial Process
Step 2: Evaluating opportunities
• Innovative ideas do not necessarily translate
into good investments.
• Entrepreneurs must carefully consider the suggestions and
ideas shared by consumers and, in doing so, conduct a
feasibility study before furthering the idea.
• During idea-generation the entrepreneurs should produce as
many ideas as possible or seek out all available opportunities
so they can determine which of these are feasible.
The Entrepreneurial Process
In the context of the entrepreneurial process, feasibility is
defined as the process during which an investment will ensure
that the product or service being developed will be successful
from a financial, resource and business point of view and will
accommodate future expansion.
The Entrepreneurial Process
In the context of the entrepreneurial process, feasibility
is defined as the process during which an investment
will ensure that the product or service being developed
will be successful from a financial, resource and
business point of view and will accommodate future
expansion.
The Entrepreneurial Process
To determine if an opportunity is feasible or not, the
entrepreneur should ask the following questions (Van Aardt,
2019):
• Are there enough attractive markets out there to
purchase the product?
• Is the suggested solution to the idea or opportunity
workable from both the market perspective and the
technological perspective?
The Entrepreneurial Process
Feasibility Questions contd.
• Who are the competitors and what gives your product
an advantage in the market?
• Do you have a passionate and committed team to
drive this idea or opportunity into the market?
• What are the opportunities that will arise from this
project and how will they outweigh the risks within the
project?
The Entrepreneurial Process
Step 3: Writing the business plan
• Once you have identified the idea or opportunity
that offers the best investment outcome, and
which is doable, it needs to be written down.
• The document to develop is a business plan.
• The advantage of writing a business plan is that
it provides the entrepreneur with insights into key
areas of the business and how they could affect
the idea or opportunity positively or negatively.
The Entrepreneurial Process
Step 4: Identifying required resources
• In this step of the process, the entrepreneur needs to carefully consider
the resources required to produce the product or develop the service.
Tangible resources
The Entrepreneurial Process
Step 5: Forming and managing the business
• This step involves the implementation and activation of the
business plan that was written and presented to investors in
Step 3.
• The entrepreneur sets up organisational structures and
processes that make it possible for product development or
service delivery to take place in the most efficient manner.
• The operational plan is key as the process involved allows for
the careful monitoring of business activities throughout the
business.
The Entrepreneurial Process
Step 6: Growth and harvest
• It is important that the entrepreneur
also monitors the growth and
expansion of the business to increase
capacity inside the organisation
• and to ensure that more products or
services can be developed and
provided to the target market.
Activity
What
is
a
business
plan?
.
Question 1
Why is a business plan
Question 2 important, in your opinion?
What should be included in the
Question 3 structure of a business plan?
Importance of the Business Plan
• Any entrepreneur needs a business plan to
successfully exploit the new business idea.
• Business plans help entrepreneurs to put their
business ideas onto paper, to source capital or
loans from potential investors, or to determine
future growth opportunities for an existing
business.
• A business plan is a useful document and serves
a great purpose for both the entrepreneur and
potential investors.
Importance of the Business Plan
Activity: Reflection P 29
Structure of the Business Plan
Creating Value Through Entrepreneurship
• When an entrepreneur starts a new business, the main aim is
clearly to grow the business.
• As the business grows, the entrepreneur will need to identify
innovative ways to increase the value of outputs produced for a
given level of inputs. He or she will need to find creative ways
to add value to products and services, and, in fact, to create
growth in productivity.
The Value of Technology
• Entrepreneurs need to stay up to date with the latest
technological advances.
• Technology makes it possible for entrepreneurs to improve on
any business process with a newer, better solution.
Case
Study
Case Study: POTS-AND-PLANTS
Case Study: POTS-AND-PLANTS
Application of Theory Activity:
Case study questions 1-4
SourceEngelbrecht, W. and Van Greunen, C. 2020. Business Management: Back to
Basics. Cape Town: Juta.:
Revision questions
• Students must work through
questions 1-8 for revision.
Glossary of terms
• Please work through the important
terms for his chapter
What Happens Next?
Week 3
Managerial Tasks
Chapter 4
Bibliography
Engelbrecht, W. and Van Greunen, C. 2024. Business Management: Back to Basics.
2nd edition. Cape Town: Juta. ISBN:9781998963416