Table of Contents

1. Introduction ......................................................................................................................................... 2
1.1. Overview of business....................................................................................................................... 2
1.2. Definition of business ...................................................................................................................... 2
1.3. Why study business? ....................................................................................................................... 3
1.4. Features of business ........................................................................................................................ 3
1.5. Objectives of business ..................................................................................................................... 4
1.6. People in business ............................................................................................................................ 6
2. Concepts & Research .......................................................................................................................... 8
2.1. 5 key terms (chapter 1-10) .............................................................................................................. 8
2.2. Entrepreneurship & success .......................................................................................................... 8
2.3. Major reasons for business failure ................................................................................................ 9
2.4. Business plan and elements .......................................................................................................... 10
2.5. Business management and skills .................................................................................................. 10
2.6. Employee motivation .................................................................................................................... 11
2.7. What makes a product unique? ................................................................................................... 12
References .................................................................................................................................................. 13
1. Introduction
1.1. Overview of business

Following more than two decades of strong economic growth, Cambodia has attained lower
middle-income status with gross national income (GNI) per capita reaching US$1,230 in 2017.
Driven by garment exports and tourism, Cambodia has sustained an average growth rate of 7.7%
between 1995-2017 (The World Bank, 2019), the sixth fastest-growing economy in the world. As
global demand peaks in 2018, economic growth is expected to reach 7%, compared to 6.9% in
2017. Growth is expected to remain robust over the medium term.
Poverty continues to fall in Cambodia, albeit more slowly than in the past. According to official
estimates, the poverty rate in 2014 was 13.5% compared to 47.8% in 2007. About 90% of the poor
live in the countryside. While Cambodia has achieved the Millennium Development Goal (MDG)
of halving poverty in 2009, the vast majority of families who escaped poverty did so by a small
margin. Around 4.5 million people remain near-poor, vulnerable to falling back into poverty when
exposed to economic and other external shocks.
Health and education remain both important challenges and development priorities for Cambodia,
where 32% (or approximately 500,000) of children under five are stunted. While net enrollment
in primary education increased from 82% in 1997 to 97% in 2016, lower secondary completion
rates at 57 % in 2017 are significantly below the average for lower middle-income countries. As
of 2015, 70% of Cambodia’s population (12.3 million people) do not have access to piped water,
and 58% (9.3 million people) do not have access to improved sanitation.
Cambodia has made good strides in improving maternal health, early childhood development, and
primary education in rural areas. The maternal mortality ratio per 100,000 live births decreased
from 472 in 2005 to 170 in 2014, the under-five mortality rate decreased from 83 per 1,000 live
births in 2005 to 35 per 1,000 in 2014.
Despite these achievements, Cambodia still faces a number of development challenges, including
the need for good quality public services, improved business environment, better land
administration and natural resources management, environmental sustainability, and good
governance. Going forward, the success of addressing these challenges will rest not only on
maintaining macroeconomic stability and increasing economic diversification and export
competitiveness, but also on improving the quality of public service delivery through more
effective public spending that is more responsive to citizens’ needs.

1.2. Definition of business

 An organization or economic system where goods and services are exchanged for one
another or for money. Every business requires some form of investment and enough
customers to whom its output can be sold on a consistent basis in order to make a profit.
 Businesses can be privately owned, not-for-profit or state-owned (BusinessDictionary,
n.d.).
 A person's regular occupation, profession, or trade. ‘experts who typically conduct their
business over the Internet’ (Oxford Dictionaries, n.d.)
 A business is defined as an organization or enterprising entity engaged in commercial,
industrial, or professional activities. Businesses can be for-profit entities or non-profit
organizations that operate to fulfill a charitable mission or further a social cause. Business
is also the organized efforts and activities of individuals to produce and sell goods and
services for profit. Businesses range in scale from a sole proprietorship to an international
corporation.

1.3. Why study business?

While it is obvious that those planning on working in most industries and prospective
entrepreneurs should study business, all people should learn as much about business operations as
possible. This includes those in the scientific, medical, education and government sectors, along
with those who are simply consumers of products and services. Becoming knowledgeable about
how businesses operate helps everyone understand how the engine that drives the world's
economies works (Pirraglia, 2017).

1.4. Features of business

Activity performed by a person with a view to earn profit is called a business activity. A person
has to produce and exchange goods and service with money in order to earn profit. For example-
production of soap, shampoos etc. Businessman is a person who performance the activity of the
business. It can be started off by any individual or group of individuals. Business is a firm set up
for the purpose of carrying a business activity.
Features of Business: There are five broad feature of business:
1. Dealings in goods and services
Business deals with goods and service. Goods are divide into consumer goods like bread,
butter, shoes, shirt etc. and producer goods like machinery, tools, equipment etc. It also
deals with services like transport, banking, insurance etc.
2. Production and exchange
Business is carried out only when goods and services are produced and exchanged for
money. If goods are produced self-consumption, such an activity is not treated as
business. Buyer and seller are the two parties involved in a business activity.
3. Continuity and regularity in dealings
An activity is said to be a business when it maintains continuity and regularity. For
example –if a person sells his house, it is not said to be a business because continuity is
not there in dealings. If he repeatedly buy house and sell them to others, such activity is
treated as business.
 4. Profit motive
The main and the foremost motive of business is to earn profit. Profit are very important
so as to enable the business to survive, grow, expand and get recognition.
5. Element of risk
Risk is said to be the possibility of incurring loss. Risks are of two types-one whose probability
can be calculated and insured. E.g.-fire, theft etc. and the other whose probability cannot be
calculated and which cannot be insured. E.g.-fall in demand changing fashions etc.

1.5. Objectives of business

The business objective is a goal, i.e. where the business wants to reach in the future. For example,
a business wants to set up its franchise in another state in the next 3 years or it wants to increase
its workforce in the coming months.
Business needs objectives, without objectives the business is like a car without headlights driving
blind. Objectives of business are the purpose for which the business is established and performed.
We can call objectives the cornerstone of every business.
Objectives are needed in every area where performance and results directly affect the survival and
prosperity of a business. The right choice of objectives is critical for the success of the business.
The objectives of a business can be classified into two main categories, which are
1. Economic objectives
2. Social objectives
Economic Objectives of Business
We learned in the previous topic that business is an economic activity. Hence, its purpose is to
show economic results. Let’s understand the economic objectives of the business. They are as
follows:
1] Profit Earning
Business is a set of activities undertaken with the prospect of sale for the purpose of earning a
profit. Profit is the extra income over the expenses. The main objective of any business is to earn
a profit. Just as a plant cannot survive without water, similarly a business cannot sustain without
profit.
Profit is necessary for growing and expanding business activities. Profit guarantee a consistent
stream of capital for the modernization and augmentation of business activities in the future. Profits
likewise show the scale of stability, efficiency, and advancement of the business organization.
2] Market Share / Creation of Customers
In the words of Drucker, “There is only one valid definition of business purpose; to create a
customer. “ Profits are not generated out of thin air. They are the result of the hard work of the
businessman to satisfy the needs of the customers.
In the long run, the survival of the business completely depends upon the market share captured
by the business. The creation of good and satisfaction of the needs of the customer is a crucial
purpose of the business. So to generate profit and demand, the business must supply premium
quality and give value for money products.
3] Increasing Productivity
Productivity is a scale to measure the efficiency of the business activity. It is usually the last
objective but just as important because productivity is measured by the output given by the
activities. It is the end result of any business activity. Each business must go for more prominent
productivity – to guarantee its survival and development. This goal can be accomplished by
decreasing wastages and making proficient utilization of machines and supplies, HR, cash and so
forth.
Social Objectives of Business
According to Dayton Hudson “The business of business is serving society, not just making
money.” Business is one of the pillars on which the society stands. Therefore, it is a part of the
society. In fact, it cannot thrive without the resources from the society. The business earns its
income from the sale of products and services to the society. It is mandatory on the part of the
business to take care of the social factors. The necessary social objectives of a business are as
follows:
1] Providing Goods & Services at Reasonable Prices
Business exists in the first place to satisfy the needs of the society. It’s the first and major social
objective of the business. Products and services ought to be of better quality and these ought to be
provided at sensible costs. It is additionally the social commitment of business to keep away from
misbehaviors like boarding, Black promoting and manipulative advertising.
2] Employment Generation
One of the major problem today’s generation facing is unemployment. Business generates
employment. Therefore, it is the social objective of a business to give chances to beneficial
employment to individuals of the society. In a nation like India, unemployment has turned into a
critical issue.
3] Fair Remuneration to Employees
The business does not run on its own but the people are responsible for the success and failure of
the business. The people on the inside of the business are more valuable i.e. employees. They are
an asset of the business and make a ground-breaking contribution to the business. They must be
given reasonable pay for their work.
Notwithstanding wages and salary, a significant piece of profits ought to be distributed among
them in acknowledgment of their commitments. Such sharing of benefits will expand the
inspiration and proficiency of employees.

1.6. People in business

 Administrator (noun): someone whose job is to manage a business, organization, or

institution.
 Agent (noun): a person or company that does business for another person or company,
for example by selling their products or by dealing with their customers.
 Ambassador (noun): someone who is considered to represent an activity, organization,
company etc.
 Baron (noun): a powerful person in a particular type of business
 Boss (noun): the person who is in charge of you at work
 Businessman (noun): a man who works in business, especially a manager
 Businessman (noun): a man who is good at dealing with financial matters
 Businessperson (noun): someone who works in business, especially a manager
 Businesswoman (noun): a woman who works in business, especially a manager
 Capitalist (noun): someone who is successful in business or who invests money in
businesses for profit
 Chief Executive Officer (CEO): the most senior manager in a company who has more
authority than anyone else and is responsible for its success.
 Chief Financial Officer (CFO): the person in charge of the financial policy and decisions
in a company
 Chairman (noun): the person in charge of a large organization or company
 Chairperson (noun): the person in charge of a large organization or company
 Chairwoman (noun): the woman in charge of a large organization or company
 Change agent (noun): someone who is employed by a company or organization to change
the way in which it is organized and managed
 Chief (noun): the person who is in charge of an organization or department, or who has
the main responsibility for something
 Chief executive (noun): the most senior person working in a company or organization
who is responsible for running it
 Company man (noun): showing disapproval a man who thinks loyalty to the company he
works for is more important than friendship or personal beliefs
 Controller (noun): someone whose job is to manage an organization or part of an
organization
 Chief Operating Officer (COO) : the person who is responsible for the daily operation of
a company
 Coordinator (noun): someone whose job is to organize the various parts of an activity and
make sure that all the people involved work well together
 Dealer (noun): a person or company that buys and sells a particular product
 Dealmaker (noun): someone who arranges deals, especially in business or politics
 Deputy (noun): someone whose job is the second most important in a department or
organization, and who takes the responsibilities of the most important person in some
situations
 Developer (noun): someone who buys land or buildings in order to put new or better
buildings there and make money from them.
 Director-general: the head of a large organization such as the BBC
 Director (noun): someone whose job is to manage all or part of a company, organization,
or institution
 Entrepreneur (noun): someone who uses money to start businesses and make business
deals
 Executive (noun): a senior manager in a business or other organization
 Executive director (noun): a director of a company who is employed by the company in a
senior management position
 Executive officer (noun): a person in a senior management position in an organization
 Executive secretary (noun): someone with a senior position in a company who is
responsible for helping people in senior positions with organization and management
 Foreman (noun): a man who is in charge of a team of workers
 Industrialist (noun) someone who owns or manages a large and important industrial
company
 Interlocutor (noun): formal someone who takes part in talks as a representative of another
person or organization
 Line manager (noun): a manager at a higher level than you who is in charge of the work
that you do
 Magnate (noun): a successful and important person with a lot of power in a particular
industry
 Manager (noun): someone whose job is to organize and control the work of a business or
organization or a part of it
 Managing director (noun): the person with the most senior position in a company and
with the responsibility for managing all of it
 Middleman (noun): someone who helps to arrange business deals and discussions
between other people
 Officer (noun): someone with a position of authority in an organization
 Ombudsman (noun): someone whose job is to deal with complaints that people make
about an organization or particular type of business
 Operator (noun): a person or company that runs a business
 Product owner (noun): someone whose role is to act as a link between the developers of a
product and the customers, to ensure that communication is as good as possible
 Proprietor (noun): formal someone who owns a business
 Road manager (noun): someone who organizes the travelling arrangements for a group of
musicians
  Social entrepreneur (noun): someone who sets up a business whose main purpose is to
bring about positive social change rather than simply make a profit.
 Stakeholder (noun): a person or company that has invested in a business and owns part of
it
 Supervisor (noun): someone who is in charge of an activity, a place, or a group of people
such as workers or students
 Trade (noun): the people or companies who work in a particular business or industry.
(Macmillan Dictionary, n.d.)

2. Concepts & Research

2.1. 5 key terms (chapter 1-10)

- Ethics: are beliefs about what’s right and wrong or good and bad.
- Business Ethics: is a term often used to refer to ethical or unethical behavior by
employees in the context of their job.
- Unethical Behavior: is a behavior that conforms to individual beliefs and social norms
about what is defined as wrong and bad.
- Ethical Behavior: is a behavior that conforms to beliefs and social norm about what’s
right and good.
- Managerial Ethics: standard of behavior that guide individual managers their work.
(Elbert & Griffin, 2013)

2.2. Entrepreneurship & success

- Entrepreneurship is the process of seeking business opportunities under condition of risk.

- Entrepreneurship is the act of creating a business or businesses while building and scaling
it to generate a profit (Nicole, 2018).
- An entrepreneur is a person who sets up a business with the aim to make a profit (Nicole,
2018).
An important of entrepreneurship

o Entrepreneurs create jobs: Without entrepreneurs, jobs wouldn’t exist.

Entrepreneurs take on the risk to employ themselves. Their ambition to continue
their business’ growth eventually leads to the creation of new jobs. As their
business continues to grow, even more jobs are created. Thus, lowering
unemployment rates while helping people feed their families.
o Entrepreneurs create change: Entrepreneurs dream big so naturally some of their
ideas will make worldwide change. They might create a new product that solves a
burning problem or take on the challenge to explore something never explored
 before. Many believe in improving the world with their products, ideas or
businesses.
o Entrepreneurs give to society: While some have this notion of the rich being evil
and greedy, they often do more for the greater good than the average person. They
make more money and thus pay more in taxes which helps fund social services.
Entrepreneurs are some of the biggest donors to charities and nonprofits for various
causes. Some seek to invest their money in creating solutions to help poorer
communities have access to things we take for granted like clean drinking water
and good health care.

How to make an entrepreneurship success:

1. Hard work, drive, and education. Small-business owners must be committed to succeeding
and willing to spend the time and effort to make it happen. Gladys Edmunds, a single
mother in Pittsburgh, wanted to open a travel agency but did not have enough money to
get started. So, she washed laundry, made chicken dinners to sell to cab drivers, and sold
fire extinguishers door to door to earn start- up money Today, Edmunds Travel Consultants
employs eight people and earns about 6 million a year.
2. Market demand for the products or services being provided. Careful analyzes market
conditions can help small-business owners assess the probable r of their products. Attempts
to expand restaurants specializing in baked toes, muffins, and gelato often struggle, but
hamburger and pizza chains potatoes continue to expand.
3. Managerial competence. Successful owners may acquire competence through training or
experience or by drawing on the expertise of others. Few, however succeed alone or
straight out of college. Most spend time in successful companies or partner with others to
bring expertise to a new business.
4. Luck. After Alan McKim started Clean Harbors, an environmental cleanup firm in
committed $1.6 billion to toxic waste cleanup-McKim's specialty. He landed Had the
government fund not been created at just the right time, McKim might New England, he
struggled to keep his business afloat. Then the U.S. government several large government
contracts and put his business on solid financial footing. McKim might well have failed
(Zimmerer & Scarborough, Reason for success, 2018).

2.3. Major reasons for business failure

Unfortunately, over half of all new businesses will not enjoy long-term success. Why do some
succeed and others fail? Although no set pattern has been established, four general factors
contribute to failure:
1. Managerial incompetence or inexperience. Some entrepreneurs put too much faith in
common sense, overestimate their own managerial skills, or believe that hard work alone
ensures success. If managers don't know how to make basic business decisions or don't
understand basic management principles, they aren't likely to succeed in the long run.
 2. Neglect. Some entrepreneurs try to launch ventures in their spare time, another devote only
limited time to new businesses. But starting a small business demands an overwhelming
time commitment. If you aren't willing to put time and effort that a business requires, you
aren't likely to survive.
3. Weak control systems. Effective control systems keep a business on track and alert
managers to potential trouble. If your control systems don't signal impending problems,
you may be in serious trouble before you spot more obvious difficulties. For instance, some
businesses fail because they do a poor job of managing their credit collection policies--
anxious to grow, they may be too liberal in extending credit to their customers and then
end up not being able to collect all the money that is owed to them.
4. Insufficient capital. Some entrepreneurs are overly optimistic about how soon they'll start
earning profits. In most cases, it takes months or even years (Zimmerer & Scarborough,
Reason for success, 2018).

2.4. Business plan and elements

Business Plan: an internal document that lays out the overall strategy and marketing plan for a
business, an initial business start-up plan or a proposal for one-off projects. It can therefore be used
as a ‘selling’ document or as a management tool.
Business Elements

 Value Proposition
 Customer Segments
 Channels
 Customer Relationships
 Cost Structure
 Key Activities
 Key Resources
 Key Partners
 Revenue Streams

2.5. Business management and skills

Business Management: Management of the resources available to a business is crucial to its

survival and growth. However, it is important to distinguish between what is essential to the day-
to-day operations of the business and what activities will contribute to efficient management but
are not in themselves crucial to success.
Business skills:

 Delegation Skills
 Communication Skills
 Negotiation Skills
 Strategic Planning
 Leadership Skills
 Team Building Skills
 Analytical Skills
 Sales and Marketing Skills
 General Management Skills
 Cash flow Management Skills
 Financial Management Skills
 Time Management Skills

2.6. Employee motivation

As a manager, they have the responsibilities to motivate the employee to create positive working
environment, build relationship, achieve organizational goals, and provide mutual benefits among
staffs. Basically, a manager must understand the Hierarchy of Human Needs Proposed by Abraham
Harold Maslow.
Maslow’s Hierarchy of Human Needs
We should note that each needs must fulfilled to employees from the bottom to the top. As a human
being, their needs will develop over time. For example, when employees require physiological
needs, they need their salary to be raised. Besides, they need more recognition when they are
already satisfied with their pay, (Maslow, 1970).
Therefore, managers must be able to manage the performance effectively to boost work
performance and productivity and maintain on having modern mindset to keep having fresh ideas.
In the meantime, managers should note that the key to employee motivation is to consider them to
play active role along with the managers.
How to motivate employees
- Invest your time and effort with them
- Share responsibilities and empower them in some decision making to ease barrier to job
performance
 - Seek employee wisdom by listening to their ideas, considering the advices, and allowing
them to be approachable to you
- Treat your employees like your partner
- Provide incentives such as access to training, consideration for promotion, small pay rise,
pay a nice dinner, etc.
- Use good communication: active listening, be open, use dialogue, be assertive.
- Put your promise into action, (Bacal, 2007)

2.7. What makes a product unique?

In the free market economy, there are many companies that conduct the same business and sell the
same type of products. To compete and gain market share, a product must have distinguished
uniqueness to be recognized by customers. Thus, product development has been developing for
many decades, and it has been part of making a product unique. 4 crucial generations of product
development are
- Invention and Commercialization Generation (1890-1950)
- Project Success Generation (1950-1980)
- Time-To-Market-Generation (1980-2000)
- Research & Development Productivity Generation (2000-2020), (McGrath, 2004)

There are techniques of creating special feature to outperform the competition which are top
priorities of production capabilities.
- Quality: high standard, reliable, can exceed the customers’ expectation
- Low-cost: more savings, cost reduction
- Flexibility: convenient, more products, efficient supply chain management
- Dependability: Fast and on time, good service offering, (Ebert & Griffin, 2013)

Moreover, there are more factors that could make product unique such as Creativity on the product
marketing, product design, and product campaign, innovation of multiple existing products,
building the brand name for a certain product.
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