F U N D A M E N TA L O F

BUSINESS
MANAGEMENT

LECTURER: MR. MTHEMBU

 CHAPTER 1

THE BUSINESS
WORLD AND
BUSINESS
MANAGEMENT
OUTLINE
1. Learning outcomes
2. Introduction
3. The role of business in society
4. Activity
5. Additional Resources
LEARNING OBJECTIVES
• At the end of this study session, students
should be able to:
• Discuss the role of need satisfying institutions.
• Analyse the different ways in which to enter the business world.
• Discuss the role of small businesses in the economy.
THE CYCLE OF NEED-SATISFACTION:
• The ability to satisfy community needs by utilising the scarce resources to produce products
and services. Society is often confronted with the economic problem/principle. Economic
issues: • Which products/services should be produced and how many? • Who should produce
these products/services? • How should these products/services be produced and with which
resources? • Who are you producing the products/services for?
THE CYCLE OF NEED-SATISFACTION
CONTINUED:
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THE CYCLE OF NEED-SATISFACTION
CONTINUED:

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THE CYCLE OF NEED-SATISFACTION
CONTINUED:

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THE CYCLE OF NEED-SATISFACTION
CONTINUED:

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•THANK YOU
ACTIVITY
CASE STUDY: KEEPING CAPE TOWN’S TAPS RUNNING In the summer of 2017, Cape Town
faced a severe water crisis with dams drying up and predictions at one point suggesting that the
metro was only days away from running out of water. The drought forced the city and its residents
to seriously consider their water usage habits, and to start investigating other options for a
sustainable water supply, such as the desalination of seawater. However, alternatives like
desalination are expensive. For example, at the Adaptation Futures 2018 conference, Gisela Kaiser,
the City of Cape Town’s Executive Director for Water and Waste, said that a small temporary
desalination plant will take three months and cost R350 million to raise the level of Cape Town’s
supply dams by just one per cent. The city is also trying to build resilience in Cape Town’s water
supply, for example by reclaiming storm water - rainfall that usually runs into drains and out to sea.
The availability of surface water in the Western Cape water supply system has been reduced by
climate change (resulting in less rain) and the invasion by alien vegetation in water catchment areas.
Cape Town is by no means alone in this crisis. Australian city Perth’s annual rainfall has been
declining by 3mm a year on average, while average temperatures in the region have increased by
1°C in the last 40 years. Perth subsequently relies less on dams and more on desalination and
groundwater for their water supply. Whilst the urban water problem might appear to be a Cape
Town-specific problem, Hastings Chikoko, Regional Director for C40 Cities in Africa, has
commented that one in four large cities globally are water stressed.
. What was the main cause of the water crisis in Cape Town in the summer of 2017?
What measures did Cape Town have to take to combat the severe water shortage?
What is the estimated cost of building a small temporary desalination plant in Cape Town?
What is the city of Cape Town doing to build resilience in its water supply?
What is the impact of climate change on the Western Cape water supply system?
VIDEO REFERENCE