On October 23rd, 2014, we updated our
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A business is any activity that provides goods and services in an effort to earn profit.
Non-profit organizations focus on causes not profit
Profit is the financial reward that comes from starting and running a business.
the money that a business earns in sales (or revenue), minus expenses
NONPROFIT PARTNERSHIPS Many nonprofits work with businesses to improve the quality of life in society. Companies support their missions and improve society. The Business of Doing Good
Creativity is important to the economy
with global competition, the stakes are high
Many of the latest inventions have come from companies
this trend is likely build momentum as global competition intensifies
INVENTIONS WITH IMPACT Source: Encyclopedia Britannica Laptop Viagra Camcorder Cat Litter Bikinis Muzak Disposable Diapers Kool-Aid Astroturf
THE EVOLUTION OF BUSINESS Mass Production Factories Work Specialization Efficiency Industrial Titans Wealth Creation Increase in Living Standard Manipulation/Competition Exploitation Assembly Line Refining Production Productivity Gains Decrease Costs Hard Sell No Customer Focus Consumer Power Growth in Consumerism Product Differentiation Customer Focus Long-term Relationships Satisfied Customers Use of Technology Relationship Era Marketing Era 1950s Production Era Early 1900s Entrepreneurship Era Mid 1800s Industrial Revolution 1700-mid 1800s
FACTORS OF PRODUCTION
Businesses rely on some combination of these factors
Entrepreneurship is a key factor
Most growing economies support and promote entrepreneurship
Natural Resources Human Resources Capital Entrepreneurship
THE ELEMENTS OF THE BUSINESS ENVIRONMENT
DYNAMIC, CONSTANT AND ENGAGING, CHANGE
Companies must respond quickly and creatively
New Target Markets…..
“ “ When the change on the outside exceeds the change on the inside, the end is near.” - Jack Welch
Government takes an active role to support businesses
Low Federal Tax Structure
Small Business Administration
Federal Trade Commission
Legislation & Enforceable Contracts
CEO/Worker Pay Gap
Free Enterprise and Fair Competition Flourish in the United States
Today’s competition is intense
Companies must focus on customer satisfaction
Build Long-Term Relationships
Customer Satisfaction = Profitability
Cheap Doesn’t Equal Value
Avoid your competitors’ strengths and exploit their weaknesses. Don’t try and beat them at their game.
Always be a little paranoid. Never underestimate your competition.
Competitors will usually get better when pushed.
Competitors are sometimes irrational when pushed.
COMPETITION IS CHANGING
What are our changing values and beliefs?
How does the integration of other cultures change/add to values and beliefs?
What demographic influences are changing the environment globally?
Companies must respond to these changes in the products they sell and how they sell them.
AND CHANGES…… Teens today are much less likely than their parents to categorize people by race, religion, and sexual orientation. They’re more likely to notice similarities and differences in core values. Source: Diversity in Word and Deed: Most Teens Claim Multicultural Friends, press release from Teenage Research Unlimited, November 10, 2004, TRU Website, http://www.teenresearch.com/PRview.cfm?edit_id=278.
Rising Worker Expectations
Ethics & Social Responsibility
Technology has transformed businesses and consumers
How Companies Do Business
How Consumers Shop
TECHNOLOGICAL ENVIRONMENT More than 724,000 Americans report that eBay is their primary or secondary source of income, And an additional 1.5 million people say that they supplement their incomes by selling on eBay. Source: US Postal Service News Release, July 21, 2005. http://www.usps.com/communications/news/press/2005/pr05_062.pdf.
GLOBAL ENVIRONMENT Terrorism is more of a threat today Job Migration China and India’s economies are growing Technology Free Trade Blurred lines between countries/world Technology is linking customers/suppliers worldwide
GLOBAL ENVIRONMENT According to investment bank CLSA, China manufactures 80% of the world’s clocks and watches, 50% of its cameras, 30% of its microwave ovens, a quarter of its washing machines, and a fifth of its refrigerators.
COOLEST BRANDS Nike 30.8% Sony 15.9% Adidas 15.1% BMW 10.1% Microsoft 9.0% Coca-Cola 8.9% IBM 8.2% According to Chinese college students
BUSINESS AND YOU MAKING IT PERSONAL What are your passions? What are business careers that encompass your passions?
Define business and the role of business in the economy.
Explain the evolution of modern business.
Discuss the role of non-profit organizations in the economy.
Outline the core factors of production and how they impact the economy.
Describe today’s business environment and discuss each dimension.
Explain how current business trends impact your career choices.