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Unformatted text preview: MGTA03 – Intro to Management – Week 1
MGTA03 Please read Chapter 1:
Understanding the Canadian
Business MGTA03 – Intro to Management – Chap 1
MGTA03 Purpose of this Chapter/Lecture:
To set the scene
To provide some basic definitions
To explain a few key theories MGTA03 – Intro to Management – Key Points
MGTA03 Main points of today’s lecture:
Definition of “business”
Profit and Loss
Factors of production MGTA03 – Intro to Management – Business
Business: an organisation that provides
goods or services, to customers, in order
to make a profit
This is a
business: MGTA03 – Intro to Management – Profit
Profit - The difference between:
$$$ in (revenues or sales)
$$$ out (costs or expenses)
Pizza business sells small, plain pizza
Revenue (or sales)
lless Expenses (or costs)
$6.00 - $5.00
$1.00 MGTA03 – Intro to Management – Profit
Fundamental reason for a business to exist
Not all organisations are businesses, e.g.
hospitals, universities, churches
These provide services, but not for profit
not MGTA03 – Intro to Management – Loss
When expenses are greater than revenues
ii.e. It costs more money to produce the
products and run the business, than the
business can generate through sales.
business MGTA03 – Intro to Management – Loss
Examples of loss-making businesses:
Question: Why did GM not make a profit?
not MGTA03 – Intro to Management – Economics
The study of how businesses, people make
What things to produce/consume
How best to produce things
How best to distribute wealth.
How MGTA03 – Intro to Management – Factors
Start with very basic economic theory.
There are basic building blocks used to
We call those basic building blocks: “Factors of production” MGTA03 – Intro to Management – Factors
resources raw materials found in or grown from the
ground, or harvested from nature.
Examples: coal, iron, wheat, water, wood,
cotton MGTA03 – Intro to Management – Factors
MGTA03 Labour human beings, i.e. workers MGTA03 – Intro to Management – Factors
money, or the machines and technologies
that money can buy. Examples:
computers, telephones, welding machines,
hammers, tractors MGTA03 – Intro to Management – Factors
the people who assemble
and organise the other
factors of production, the
individuals who make
it all happen
it MGTA03 – Intro to Management – Chap 1
MGTA03 MGTA03 – Intro to Management – Chap 1
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This note was uploaded on 06/18/2011 for the course MGT a03 taught by Professor Bovaird during the Spring '11 term at University of Toronto- Toronto.
- Spring '11