BADM1103F07Ch01

Chapter 1Managing Within the Dynamic Business Environment2/23Business & Entrepreneurship•Business •Any activity that seeks to provide goods and services to others while operating at a profit•Profit•The amount a business earns above and beyond what it spends for salaries and other expenses•P=Revenues-Expenses•P=Sales-Costs3/23Business & Entrepreneurship (contd.)•Revenue•Total amount of money a business takes in during a given period of time•Entrepreneur•Def. 1: a person who risks time and money to start and manage a business•Def. 2•Def. 3•An example 4/23Business & Entrepreneurship (contd.)•Match Risk With Profit•or Loss•Risk•The chance an entrepreneur takes of losing time and money on a business that may not prove profitable 5/23Business & Entrepreneurship (contd.)•Standard of Living•The amount of goods and services people can buy •Quality of Life•The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy6/23Business & Entrepreneurship (contd.)•Stakeholders•All the people who stand to gain or lose by the policies and activities of a business•Outsourcing (Insourcing)•Assigning various functions to outside organizations7/23Stakeholders8/23Business & Entrepreneurship (contd.)•Nonprofit Organizations•An organization whose goals do not include making a personal profit for its owners or organizers•Government, public schools, charities•Social Entrepreneurs 9/23Creating Wealth•Factors of Production•The resources used to create wealth10/23Factors of Production11/23Business Environment•The surrounding factors that either help or hinder the development of business12/23Business Environment (contd.)13/23Business Environment (contd.)•Economic and Legal Environment•Minimum taxation and regulation•Allow private property•Enforce legality•Stable currency•Minimize corruptionQuiz: Where is USA 14/23Business Environment (contd.)•Technological Environment•Technologyphones, computers, software…•ProductivityThe amount of output you generate given the amount of input (e.g. hours worked.)15/23Business Environment (contd.)•Effectivenessproducing the desired result•Efficiencyproducing goods and services using the least amount of resources•E-commercebuying and selling of goods over the InternetB2CB2B 16/23Business Environment (contd.)•Competitive Environment•Responsiveness to CustomerDatabase•electronic storage file where information is kept•Identity Theftobtaining private information about a person and using that information for illegal purposes10 million Americans are victims17/23Business Environment (contd.)•Competing by Exceeding Customer ExpectationsCustomer-drivenbusinesses –listen to the customer•Competing by Restructuring and EmpowermentFront-line workers must respond quickly to customer requests –and have autonomy18/23Types of Businesses19/23Business Environment (contd.)•The Social Environment•DemographyThe statistical study of the human population in regard to its size, density, and other characteristics, such as age, race, gender, and income•Managing DiversityDiversity includes many more population groups, including seniors, the disabled, homosexuals, and singles20/23Business Environment (contd.)•Aging/Graying of AmericaBaby boomers0%10%20%30%40%50%60%70%80%19201940196019802000Under 1515-6465+21/23Business Environment (contd.)•Two-Income Families•Single-Parent FamiliesChild care benefits00.511.522.533.544.55Number of Persons in a Household190019401980200022/23Business Environment (contd.)•The Global Environment•International Competition and Free Trade•Improvements in Transportation and Communication –more trade•War & Terrorism –less trade?•Global Changes23/23Evolution of American Business•Agricultural/Manufacturing•Service Industries•Future???