2. Do we really know what is
BUSINESS????
• The organized effort of individuals to prodece
and sell, for a profit, goods and servicess that
satisfy society’s need.
Produce either goods and services
Seek profit
Try to satisfy consumer wants
4. EFFECTIVENESS & EFFICIENCY
• Effienciency is achieved by using the fewest
inputs to generate a given output.
• Effectiveness is achieved when the
organization pursues appripriate goals.
6. • OWNERS
Create business ideas and posibbly to provide some
financial support.
• CREDITORS
Financial institutions or individuals who provide
loans.
• EMPLOYEES
Resposible for managing job assignmens.
• SUPPLIERS
cannot complete production process if they cannot
obtain the materials.
• CUSTOMERS
Firm cannot survive without customers
8. To provide
direction and
guidance
Helps manage to
asses the business
performance
PURPOSE
OF GOALS
SETTING
To define the
corporate culture
To assist in the
allocation of
resources