*Businesses often make a decision among;
What is happening in the short run – your profits might decrease
What is happening in the long run– production & profits will increase
*Business opportunity: Scanning the market and finding an opportunity that fits your personal strengths and qualities (the strengths and qualities that you have access to)
Leadership + Ownership + management of resources + discipline(partners) + patience
Risk taking
Creativity
Innovation
*Upside of specialization: to increase productivity/efficiency
Downside of specialization: the employee gets bored the quality decreases
*Departments exist only to have people specialize in it.
E.g. there is a part of school which specializes on accounting and managing the schools financial business.
*Size=scale
Large scale org.’s can offer more people who are specialists.
*A system can be a part of another system.
Feedback is in the form of information.
Output is physical.
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