01+-+Chapter+01 - MGTA03 – Intro to Management – Week 1...

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Unformatted text preview: MGTA03 – Intro to Management – Week 1 MGTA03 Please read Chapter 1: Please Understanding the Canadian Business System 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 MGTA03 Business: an organisation that provides Business: goods or services, to customers, in order to make a profit to This is a This is business: business: MGTA03 – Intro to Management – Profit MGTA03 Profit - The difference between: $$$ in (revenues or sales) $$$ out (costs or expenses) $$$ Example: Example: Pizza business sells small, plain pizza Pizza Revenue (or sales) = Revenue lless Expenses (or costs) ess Profit = = $6.00 $6.00 - $5.00 $1.00 MGTA03 – Intro to Management – Profit MGTA03 Profit Profit Fundamental reason for a business to exist Fundamental Not all organisations are businesses, e.g. hospitals, universities, churches hospitals, These provide services, but not for profit These not MGTA03 – Intro to Management – Loss MGTA03 Loss When expenses are greater than revenues When ii.e. It costs more money to produce the .e. products and run the business, than the business can generate through sales. business MGTA03 – Intro to Management – Loss MGTA03 Examples of loss-making businesses: Air Canada General Motors Chrysler Question: Why did GM not make a profit? not MGTA03 – Intro to Management – Economics MGTA03 Economics: The study of how businesses, people make The choices about: choices What things to produce/consume What How best to produce things How How best to distribute wealth. How MGTA03 – Intro to Management – Factors MGTA03 Start with very basic economic theory. There are basic building blocks used to There produce anything. produce We call those basic building blocks: “Factors of production” MGTA03 – Intro to Management – Factors MGTA03 natural natural resources resources raw materials found in or grown from the raw ground, or harvested from nature. Examples: coal, iron, wheat, water, wood, cotton cotton MGTA03 – Intro to Management – Factors MGTA03 Labour human beings, i.e. workers MGTA03 – Intro to Management – Factors MGTA03 capital money, or the machines and technologies money, that money can buy. Examples: computers, telephones, welding machines, hammers, tractors MGTA03 – Intro to Management – Factors MGTA03 entrepreneurs the people who assemble the 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 MGTA03 ...
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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.

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