Professional Documents
Culture Documents
Chapter One
*
Taking Risks
and Making
Profits within
the Dynamic
Business
Environment
Introduction
Business world can be seen as a
complex system
Involves transforming resources into
products and services
Must meet the needs of people in
exchange for profit
What Is Business?
Activity seeking profit
Provides goods/services
Satisfy standard of living- quality
of life [..Higher in USA, Germany & Japan]
Nonprofit organizations
Business: Any activity that seeks to provide goods and
services to others while operating at a profit.
My View: Business is an economic unit that does socially
desirable activities to attain specific objectives (profit,
social welfare).
I
O
N
The Evolution of
U.S. Business
LG8
o
f
B
U
S
I
N
The Early
E
Economy
S
The
Industrial
Revolution
The
Manufacturing and
Marketing
Economies
The Service
&
Internetbased
Economy
1-5
Evolution of Business in
BD
Agricultural/Manufacturing
Service Industries
Future???
*Revenues,
Profits
and Losses
LG1
Objectives of Business
Survival
Growth
Profit
Social
Responsibility
Business
Business
Business
Business
involves
involves
involves
involves
human activities
production
exchange
profit
Social responsibility
Affirmative action and equity
Business ethics
Consumerism
Environmental damage
Natural resources
Human resources
Capital
Entrepreneurship
Opportunities For
Entrepreneurs
Matching Risk With Profit
Revenue - Expense =
Profit(Loss)
Risk
Factors of Production
Land
Entrepreneurship
Labor
Capital
Knowledge
The Importance
of Entrepreneurs
to the Creation of
Wealth
LG2
Business
TODAYS DYNAMIC BUSINESS ENVIRONMENTThe
Environment
A Customer
An Overseer and
Regulator
A Tax Collector
*
GOVERNMENTS ROLE in BUSINESS
The Economic
and Legal
Environment
LG3
Environments of
Business
Economic
Technological
Social
Competitive
Global
Economic Environment
$ Freedom of ownership
$ Tradable currency
traded with $)
(Higher
the taxes & regulation, lower will be the growth of business)
Technological
Environment
Internet (Use of Teleconferencing)
E-commerce
(B2B and B2C)
Role of Intermediaries ?
(Amazon.com/ eBay/ Google/IBM)
Responsiveness to Customer
Information Management
Use of Bar Codes-info to database
Leads to Identity theft also
A firms chair lives in New York, its business in London, its CEO in Frankfruit and other key
managers in a business tour to Asia. How would make a quick decision involving everyone?
BENEFITS of TECHNOLOGY
How Technology
Benefits Workers
and You
LG4
1-23
Competitive Environment
In todays globe, the goal for
many firms is zero defects!
Customer Service:
Customer is King!
Customer Demands
Good quality at lower price
Speed:
Community/Stakeholder Needs
Natural/Ecological Concern
Modern Business
1. Delighting Customers
Customer
2. Customer & stakeholder
satisfaction
Orientation
Customer
3. Profit & Social
Orientation
Orientation
Profit Orientation
4. Proactive Ethics
Reactive Ethics
5. Quality & service
Orientation
Product Orientation
6. Customer Focus
Managerial focus
Social Environment
Diversity/Multicultural:
Seniors, disabled,
introverts, extroverts, married, single, and the devout
Aging/Graying of America:
Medicine, nursing homes, assisted-living, adult day
care, elderly recreation, home health care etc.
POPULATION CHANGES
Population shifts are creating
opportunities for some and
limiting others.
The Social
Environment
and Managing
Diversity
LG6
Global Environment
Quality
Productivity
Changes
*The Global
Environment
LG7
*The Global
Environment
LG7
1-31