Introduction to Management
Business Organization😍
Business Organization is group of people working together to satisfy human needs and wants by producing goods and services with a common objective of profit maximization.
Goals of Business Organization👇
- keep proper position in the market.
- profit maximization.
- increase the customer satisfaction.
- satisfaction of employee.
- other thing is business organization try to use their resources as best way like using low amount of input getting more output.
Needs and Wants👀
Need is human being must satisfy things or the essential things of human being to survive that called as needs and Wants is human being satisfy needs with different different ways or with various ways that called as wants as a example previously I told needs is a essential thing and it is specific food ,air ,water ,shelter are example of needs we can satisfy that need with various kind of method like one person can eat rice or another person can eat bread some other person eat chickens to satisfy their wants finally all are achieve only one needs that is food.
Difference between Needs and Wants🙍
| needs | wants |
|---|---|
| specific ex: food | not specific ex: rice , bread ,chickens |
| essential | not essential |
| not depend on religious, rule etc. | depend on rule, religious etc. |
Productive Resources
- land
- Entrepreneurship
- Labor
- Capital
when we come to the business organization they need to operate above four productive resources these should be operate by business organization and these are the cost of business organization.
Land
when we come to the business organization they need a building or place or rent place or own place to continue their business. You need to operate land if not your own place then you have to pay rent it is cost of business organization.
Entrepreneurship
When never there is a business their is a person to start the business, who come up with new business idea and who invest their money, knowledge for the business that kind of people we called as entrepreneurship and other thing is profit is the cost of entrepreneurship ,profit provide by business to entrepreneur to incentive them to get more new thing for the business.
Labor
Human resources of the organization may be they can be product base or services base labor.
what is the cost of labor?
- salary and wages
difference between salary and wages😀
salary is promise to pay end of the month or pay specific day but wags are not like that wages pay like how many days you work and that depend on your performance and hours of you work.
Capital
what resources belong to business organization that are capital of business like such as money ,machines (all asset) are indicate capital of the business. Interest is cost of capital as a example some person invest money in our organization then we have to give interest to them.
Business Functions; make , sell , trade
.png)
Economic Problems
The economic problem is limited resource with unlimited wants simply that called as scarcity.
resources < wants
scarcity >>>>>> choice >>>>>> opportunity cost
scarcity
We have limited resources but we try to fulfill our unlimited wants by using our limited resources that we called as scarcity.
choice
When we come up with scarce resources then we have many alternatives so we have to select one option that is the choice.
opportunity cost
when you come up with scarce resources there is a many alternatives so we choose option from that or after we selecting certain option then we have to give up remaining alternatives that remaining options have best option even if it is best option but we have to give up it ,and also give up best option price we called as opportunity cost.(cost of give up best alternative option).
goods and services
goods
services
goods and services difference
| Goods | Services |
|---|---|
| tangible | intangible |
| can store | can not store |
| we can see | we can not see |
Economic goods
If the goods are produced by scarce resources that goods define as economic goods. People need to spent cost for that goods and they need to choose goods.
Non-Economic goods
These are provide by nature and it supply unlimited at zero price and there is no opportunity cost
ex: air, sunlight, free water
thank you💖
0 Comments