Business Management 1 (BM101) Business …

1 Business Management 1 (BM101). Business Management (BM). The copyright of all IMM Graduate School of Marketing material is held by the IMM GSM. No material may be reproduced without prior written permission from the IMM GSM. Revised: September 2012. IMM GSM Page 1 of 98 BM101/BM. Table of contents SECTION A. 1. Word of welcome .. 3. 2. How to use this guide .. 4. 3. Purpose and overall learning outcomes .. 6. 4. National Qualification Framework specifications .. 7. 5. Pre-knowledge .. 7. 6. Relationship with other modules . 8. 7. Prescribed textbook .. 8. 8. Curriculum .. 10. 9. Specific learning outcomes .. 10. 10. Critical cross-field outcomes .. 13. 11. Assessment details .. 14. SECTION B. Study Unit 1: Business Management and its challenges 18. Study Unit 2: The Business environment . 24. Study Unit 3: The task of Management .. 32. Study Unit 4: Business functions .. 45. Study Unit 5: Entrepreneurship .. 90. Study Unit 6: The Business plan . 96. IMM GSM Page 2 of 98 BM101/BM.

2 SECTION A. 1. Word of welcome Welcome to the module in Business Management . You are about to set off on a new journey of discovery and learning! Try to think of this learner guide as your detailed map for the journey in learning more about the field of Business Management . Distance learning requires discipline and planning. This learner guide has therefore been developed to guide you through the concepts and theory of Business Management and to assist you in successfully completing the module. It is not intended to replace the prescribed textbook, but the learner guide rather leads you through each unit of study allowing you to gain a full understanding of the essentials of making a success in the world of Business . Business Management is the fundamental study field for managers in all fields of functional specialisation, for example, marketing. Managers need to develop an understanding of all the relevant functional and specialised fields within the broader organisation.

3 With this skill, a manager will become the driving force behind innovation, change and opportunity development for all future sustainable Business practices. This Business Management module, in conjunction with Business Management 2 and 3, focuses on the basic skills, knowledge, functions and tasks that managers must have, develop and apply in order to manage their departments, and the organisation as a whole, successfully within the marketing industry and beyond. Furthermore the Management tasks of planning, organising, leading, motivating and controlling will only be introduced in this module, as they will be discussed in greater detail in Business Management 2. IMM GSM Page 3 of 98 BM101/BM. The objective is to enable you to conceptualise this study field by understanding the Business environment within which an organisation exists, (consisting of various Business functions or departments) and performing specialised tasks in order to provide products and services which will satisfy current and future consumer needs.

4 The organisation as part of a broader system needs to add value through its specialised tasks and functions and ensure sustainable practice while satisfying customers' needs. You must develop the ability to see your field of specialisation in the context of Business Management , relating to a profit-driven Business organisation. The prescribed textbook therefore focuses on a variety of aspects relating to Business Management , the Business environment and an introduction to the various functions within the organisation. If you do not want to pursue a formal marketing Management career, the module will still be of great value to you as it will provide you with insight into and an overview of the world of Business , the Business environment and the various key Business functions. 2. How to use this guide Business Management 1 is an introductory module. The objective of this module is not to develop you into a Business Management expert, but rather to create an introductory awareness and understanding of the Business organisation, with its primary Business functions as a pivotal entity within the broader Business environment system.

5 Understanding the basics relating the different functions of the organisation within the Business system, will allow you to conceptualise the functioning of an organisation and its departments as well as the application of Management tasks in a broader open system. The learner guide is especially designed for a distance-learning student. The guide will provide an overview of the total curriculum and will indicate the learning outcomes, which are essentially the core of this guide. It will provide you with each major topic that IMM GSM Page 4 of 98 BM101/BM. has to be covered, along with its systematically explained learning outcomes. The guide will also indicate how the learning material must be prepared for examination. This learner guide is divided into two sections: Section A provides all the information needed about the course and where it will lead you on your path of learning within the context of the South African National Qualifications Framework (NQF).

6 Section B guides you through the 6 units of study that make up this module. You need to study each unit systematically. The outcomes tell you what you should learn; the guidelines assist you to best achieve the outcomes; and the self-assessment exercises enable you to measure how well you have achieved what you set out to learn. Make sure that you understand and can do all the exercises. This will ensure your success in the examination. Good luck as you set out on this stage of your learning journey! The learner guide should be studied in conjunction with the textbook and does not replace the textbook. At the end of each study unit you will find some examples of typical examination questions which should be used for self-evaluation. The following icons appear in all of the learning guides of the IMM Graduate School of Marketing: Indicates learning outcomes IMM GSM Page 5 of 98 BM101/BM. Indicates the sections in the prescribed textbook that you need to study.

7 Indicates key concepts Indicates the self-evaluation questions. 3. Purpose and overall learning outcomes There are two main aims for Business Management : To provide knowledge and an understanding of the basic concepts, tasks, theories and principles of the field of Business Management . To help you apply the knowledge to situations relating to the different Business functions within the Business organisation and its external environment. The module covers the Business environment, Business opportunities and the Business plan as well as the functional areas of the organisation. The focus is on establishing a basic understanding of a profit-driven organisation not excluding non-profit organisations such as local government, church and non-government institutions. The focus is on any industrial, commercial or service organisations. IMM GSM Page 6 of 98 BM101/BM. Once you have completed this module you should be able to: Understand the general background to the field of Business Management , including the environment in which an organisation functions.

8 Identify and briefly explain the different Management tasks that cover the fields of planning, organising, leading, motivating and controlling. Discuss the functional areas of Business , namely operations Management , logistics Management , financial Management , human resources Management and marketing Management . Understand entrepreneurship. Construct a Business plan. 4. National Qualifications Framework specifications This module forms a compulsory module for the Higher Certificate in Marketing, the Diploma in Marketing Management , the Diploma in Export Management and the BBA in Marketing Management and BCom in Marketing and Management Science. In terms of the new National Qualifications Framework (NQF) it is designed as a 20-credit module offered on NQF level 5. The IMM Graduate School of Marketing regards Business Management 1 a first-year module. 5. Pre-knowledge Reading and mathematical skills are required in order to complete this module successfully.

9 Although no formal specialised learning is required in the field of Business IMM GSM Page 7 of 98 BM101/BM. Management , subjects such as economics, accounting, Business Management , mathematics and English can enhance your learning experience. It is also assumed that you are sufficiently computer literate and that you will be able to operate the Internet when attempting this module. It is further assumed that you have had sufficient experience in producing advanced assignment reports integrating diverse information in a coherent purposeful report. A sound knowledge of the use of the Harvard referencing system is compulsory before attempting this module. 6. Relationship with other modules Business Management is a foundation course for most of the IMM GSM qualifications. The topics covered in this course will introduce you to the broad areas of Business and allow you to understand the various Business functions in a general organisational environment, rather than confining those skills to a particular Business area.

10 Later in your programme of studies you will find that this module will underpin and reinforce your understanding of marketing principles. The terminology used and the concepts that are explained are integrated into other IMM. GSM modules that form part of your chosen curriculum (marketing, etc.). This will help you to make connections across the various courses you study. 7. Prescribed textbook The prescribed textbook for this module is: IMM GSM Page 8 of 98 BM101/BM. Strydom, J., 2011. Principles of Business Management . 2nd ed. Cape Town: Oxford University Press. The textbook is written in a clear and systematic manner. Always start your studies by consulting the learner guide and then study the relevant sections in the prescribed textbook. It is unlikely that you will pass this module if you have only consulted the learner guide without studying the content of the textbook. Note that at the end of each chapter, a variety of questions relating to a specific case study are presented in order to help you to apply your theoretical knowledge and furthermore conceptualise it with reference to practical examples.