Any organization that employs resources to supply clients with the goods or services they want is considered a business. The process of making final goods goes through numerous stages. Adding value to resources, such as raw materials and partially finished commodities, increases their desirability for and value to the eventual consumer at all phases of business activity. Businesses see what are the needs of the customer. With the help of raw materials, they make finished goods that help in the development of society.

Business Inputs or Factors of Production

•   Land: Nature-given raw materials and resources such as soil, air, water, and minerals

• Labor: Human effort used to produce commodities and provide services

•  Capital: Financial support in the form of money or physical assets such as machinery, technology (computers, scientific equipment), buildings, trucks, and land

•  Entrepreneurship: The human element that takes time and effort to plan for the future

•  Management: The process of planning for production and distribution in order to maximize profits

•  Governmental Regulators: Laws that protect businesses by limiting competition; taxes paid to local, state, federal governments.

Business Functions

There are mainly 4 different types of functions that are involved with a business. These include:

1.  Marketing: This particular function seeks to find and attract customers for the product or service.

2.  Finance: Financial decisions need to be made that involve the way money is used in a business.

3.  Human Resource Management: The hiring, firing, and working conditions of people within the company.

4.  Operations: The actual process of producing goods and/or providing services to customers.

Sectors of Business

Any business in the market can be divided into three sectors namely primary, secondary and tertiary sector.

           I. Primary Sector: This one is a basic product or commodity followed by customers. Examples of the primary sector are agriculture, horticulture, livestock and fishing.

        II. Secondary Sector: This one focuses on products that are used by the masses including clothing, food, beverages, automobiles and many more.

      III. Tertiary Sector: It deals with products that have very low demand so it is not considered a large market such as public utilities, insurance and banking activities as well as stock trading on financial markets like stock exchanges.

Business Organization

There are many different types of business organizations, but they can be grouped into 4 main categories which include sole proprietorship, partnership, corporation and non-profit organization.

1. Sole Proprietorship- This one is an individual who owns the business and is responsible for its daily operations.

2. Partnership- This one involves two or more partners that share ownership in the business.

3. Corporation- This one has a formal structure which focuses on the formal organization of capital with stockholders, directors and managers.

4. Non-Profit Organization- This one doesnt have any revenue and it isnt focused on profits; therefore, they dont have any managerial control over the companys activities, they are either supervised by association or religious organizations.

Organizational Objectives

Organizational objectives are broad and specific goals that are used by the business to determine its course of action. The main objectives of a business include efficiency, growth, stability and profitability. These objectives are determined by the executives of the business. The Board of Directors will also look at these objectives and make decisions to determine the direction of the business. 

Question: Is there any vision statement that is to be followed by the business? If yes, then what factors help in deciding the vision and how it can be achieved?

Answer: Of Course, any business in the market is ought to have a vision to function in the market. Vision helps in determining the goals of the organization. To know more about visions and vision statement visithttps://youtube.com/channel/UCoqI7C9rI2UbFPITF2bPgnQ.

Stakeholders

The companies take into consideration the interests of the stakeholders. The stakeholders are those who affect or can affect the firms ability to create and capture value. Stakeholders can be internal or external to a firm, for example, management and employees as well as customers and suppliers.

While each stakeholder has a different interest in the firm, they all have a mutual interest in making money for themselves and the company.

External Environment

Businesses are independent actors in the broader economy that strive to become profitable by competing with other firms in a given area in order to increase market share. As firms compete with one another, they must create demand for their goods or services. However, firms compete with other firms in order to obtain these commodities at the lowest possible cost due to equal access to resources such as land, labor, and capital. The most important aspect of a business is its ability to produce goods and services at low costs.

Organizational Planning

Planning is essential to the successful running of a business. The planning of a business involves deciding the options or techniques that will be used by the firm. These include strategic and operational plans. Strategic planning focuses on short-term goals as well as long-term goals for the company. Existing policies, procedures and systems are created, or redesigned, to conform with the needs of the business plan.

Operational planning involves determining the methods in which resources are utilized to accomplish a business goals. Such uses include general operating activities such as recruiting, training and evaluating employees. It also includes decisions regarding purchasing goods and services, making investments in equipment and facilities to accommodate customer demand and long-term strategies such as mergers or acquisitions.

Question: What is SWOT Analysis and how it helps in organizational planning?

Answer: SWOT Analysis sees the strength, weakness, opportunities and threats for an organization. It is an important aspect of business planning and must be followed by each organization. To know how to conduct SWOT analysis for a firm kindly visit  https://youtube.com/channel/UCoqI7C9rI2UbFPITF2bPgnQ.

Growth and Evolution

Businesses are constantly evolving and changing. It is not uncommon to have a business have its own growth through the years. This can be due to changes in technology, economy, competition, or other factors. Managers play a key role in this evolution by keeping the overall process of business running smoothly and taking care of vital aspects such as management styles and organizational structures.

The relationship between competitors is an important aspect of business enterprises. The existence of competition in a market will cause businesses to try different strategies to maintain profitability, revenue and market share.