How do businesses run

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter4: External And Internal Organizational Environments And Corporate Culture
Section4.1: The Organization's External Environment
Problem 2CC: What factors within the economic environment affect businesses?
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How do businesses run

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Business

  • Business can be defined as any institution that runs on a regular basis, that has been established with the purpose of achieving goals, and works for some profit or earnings. It is done for commercial purposes and/or for the purpose of serving society.
  • A business is described as a company or organization that engages in commercial, economic, or professional activity. The word "business" also corresponds to persons organized initiatives and operations to produce and distribute goods or provide services.

Management

  • Managers perform many different functions like planning for the future, creating goals and objectives, building strategies to achieve the goals, organizing the work, staffing employees to fill in the gaps between where the organization is and where it has to reach. 
  • It also directs the employees towards accomplishing their goals and hence, the organizational goals.  They control and evaluate this entire process on a regular basis using statistical tools and management principles.
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