How do commercial businesses support the work of industrial businesses?
Identify products that you consider to be innovations. Explain how they are different from and similar to other new products that you wouldn’t classify as innovationsWhat foreign languages do you know or are you studying? Why? How will this be advantageous applying for jobs in the future?
How much is current GDP ??? Which country has the next highest? China … and European Union (25 countries)
65% of US families own the homes they live in
2 Reasons for business growth are - the Strong Desire to individuals to own their own businesses ENTREPRENEURS - the EASE with which a business can be started
Ch 1 Intro to business
Activity:In your notebook draw a picture of a BusinessWhat does it look like?
• An organization that produces or distributes a good or service for profitGoods= tangible (physical)Services= intangible
• Industrial – produce goods used by other businesses to make things – Ex. Coal mining, farming, crude oil• Commercial – Wholesalers & retailers (marketing) – Finance (banks, investment companies) – Services ( fitness centers, hotels, medical)
What type of business is…• Lawn-mowing- Service• Paper mill- Industrial• Dentist- Service• Textile (clothing)- Industrial• Sports Authority- Retail• McDonald’s- Service• Dell Computers- Industrial
Is a word often used to describeALL businesses within a CATEGORYdoing similar work
• Business is (constantly changing)• An is something entirely new 1. Affect the kinds of products/services offered (example technical athletic clothing) 2. Affect business operations (Internet and telecommuting)• What other innovations have benefited you?
Challenges When Competing Internationally• Global Innovation• CompetitionDomestic Goods = made by US firmsForeign Goods = made by firms in other countries
• Making the right decisions about what products or services to offer customers & how to produce and deliver themEfficiency• Producing quickly, at the lowest cost, while maintaining quality
• Gather customer info• Study buying habits• Test new products• Add new features• Product guarantees & follow-Up• TQM (Total Quality Management) – commitment to excellence
Efficiency• Measured by OUTPUT – Quantity produced within a given timeProductivity:• Producing the largest quantity in the least amount of time• Achieved through: 1. Specialization of effort 2. Modern technology 3. Reorganization of work (downsizing/empowerment)
• Gross Domestic Product• Measure of nation’s economic wealth• = total market value of all goods & services produced in a country in 1 year• US about $14.58 Trillion• Not included: Underground transactions not reported to Federal Gov’t
Standard of Living is ↑er in productive nationsInvestments in Human Capital
Franchise:• Legal agreement• Small group of investors purchase right to sell a company’s product/service under company’s name and trademarkActivity: “FRANCHISE ABC’S”
Entrepreneur:• Someone who starts, manages, & owns a businessSmall Business• Companies operated by 1 or a few individuals• Make up largest # of businesses in US• ½ of all employed people work for small businesses
What are the risks involved?Competition from other businessesPrice changesStyle changesCompetition from new productsChanges in economic conditions
Agree or Disagree? “Anyone who starts a business has a responsibility to the entire community”A business that fails creates an economic loss that is shared by others (customers, employees, suppliers, competitors )
• TO CUSTOMERS – best at ↓est price• TO EMPLOYEES – respected, rights enforced• TO MANAGEMENT – recognition for abilities• TO COMPETITORS – fairness• TO INVESTORS – kept informed, interests considered• TO PUBLIC – promote general welfare, obey laws
What is Intrapreneurship???An employee who is given funds and freedom to create a special unit or department within a company to develop a new product, process, or service