Lecture 1 – Business and the firm
- Why is business important
- How its organized and functions of departments
What is a business?
- A place where they have good or services in exchange for something of value in order to
obtain a profit
o They’re everywhere in our world
One person companies
Large private firms
International public or pvt companies
Business Firm Structure
- Top: Exec Leadership
Functional are leads report to
Senior decision authority
Responsible for overall strategy of the firm
o Operations & logistics
Money making (value creation) engine of the firm
Supply chain mgmt o Engineering & design
Design of P&S and processes
Have to be close with marketing to ensure their designs are customer
What are you going to sell?
How much for the item?
Who are you going to sell it to?
How to attract them? How to sell it?
Quality and pricing
o Accounting and Finance
Recording and reporting all financial info
Internal and external people
Finance: mgmt of financial assets
Raising capital through debt and equity financing
o Human resources
Training and skill development
Compensation and benefits
o Support: IS/IT/Quality/Safety/Infrastructure
Numerous functions essential to the effective operation of the firm. Sometimes these can be put under other sections such as IT being unde