Introduction To Business Management 1

CHAPTER 1 The business world and business management Peet Venter The purpose of this chapter This chapter discusses the role of business in society and explains how a business organisation in a market economy employs the various resources of a nation (its natural resources, human resources, financial resources and entrepreneurship) in order to satisfy the need for products and services. The chapter gives an overview of the prevailing economic systems in the world and explains how the business organisation functions in a market economy. Learning outcomes On completion of this chapter you should be able to: explain the role the business organisation plays in making available the products and services society must have to exist and thrive describe the needs of society and how a business organisation satisfies those needs in a market economy distinguish between the worlds three main economic systems explain the interface between a business organisation and a market economy describe the nature and purpose of business management as a science, where the enabling factors, methods and principles of the business are studied to ensure the efficient functioning of a business organisation comment on the development of business management as a science distinguish between and comment on