Learning Goals1 Distinguish between business and not-for- 5 Explain how today’s business profit organizations. workforce and the nature of work itself is changing.2 Identify and describe the factors of production. 6 Identify the skills and attributes managers need to lead businesses3 Describe the private enterprise system, in the 21st century. including basic rights and entrepreneurship. 7 Outline the characteristics that make a company admired by the business4 Identify the six eras of business, and community. explain how the relationship era— including alliances, technology, and environmental concerns—influences contemporary business.
W is Business? hats Profit-seeking activities and enterprises provide goods and services necessary to an economic system.s Profit-seeking is the reward for business people who take the risk involved to offer goods and services to customers.s See Fortune 500 for a list of major U.S. companies.
Factors of Productions Natural Resourcess Capitals Human Resourcess Entrepreneurships Occupational Outlook Handbook
The Private Enterprise Systems Capitalism s Adam Smith is the father of capitalism. s “Invisible Hand”s Economic system determines business ownership, profits, and resourcess Rewards firms for their ability to serve the needs of consumerss Minimized government interventions Competition is the battle among businesses for consumer acceptance.
EntrepreneurshipAn Entrepreneur: Entrepreneurial thinking iss Is a risk-taker s Takes financial, personal, important within large firms. social, and career riskss Sees a potentially profitable opportunitys Devises a plan to achieve success in the marketplace and earn those profitss Fuels the U.S. economys Provides innovation
Managing Relationships through Connectionss Relationship Management s Activities to build and maintain mutually beneficial ties with customers and other partiess Relationship management depends on technology.
Strategic Alliances and Partnershipss A partnership is an affiliation of two or more companies that help each other achieve common goals.s A strategic alliance is a partnership formed to create a competitive advantage for both parties (see Amazon).
Today’s Business Workforces Dedicated workers who can foster strong ties with customerss Capable of high-quality productions Able to compete in global marketss Technically savvy
Changes in the W orkforce: Aging Populations By 2030, the number of U.S. workers 65 or older will reach 72 million.s Many baby boomers are hitting the peak of their careers, while Generations X and Y are launching their careers.s Technology has intensified the hiring challenge by requiring workers to have ever more advanced skills.s U.S. Census Bureau
Changes in the W orkforce: Shrinking Labor Pool/Diversitys Economists predict the U.S. labor pool could soon fall short by as many as 10 million people.s The two fastest-growing ethnic populations in the United States are Hispanics and people of Asian origin.s Employee teams with individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities are more effective.
Changes in the Workforce: Outsourcings Outsourcing is using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in- country.s Offshoring is the relocation of business processes to lower-cost locations overseas.
Changes in the W orkforce: Innovation through Collaborations Younger workers are looking to something other than work-comes-firsts Telecommuting and job-sharings Part-time and temporary workers are growings Collaboration is replacing working alones Value risk-taking and innovation
The 21st-Century Managers Critical-thinkings Creativitys Ability to lead changes Vision
Critical Thinking and Creativitys Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities.s Creativity is the capacity to develop novel solutions to perceived organizational problems.
Ability to Lead Changes Guide employees and organizations through changess Managers must be comfortable with tough decisions.s Factors that require organizational change can come from external and internal sources.
W Makes a Company Admired? hats Solid profitss Stable growths Safe and challenging work environments High-quality goods and servicess Business ethics and social responsibilitys Fortune’s list of Most Admired Companies
The Future of Businesss New Technologiess Population Shifts s Emerging nationss Shrinking Global Barriers s Trade, communication, transportation