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Ch 1 intro to business


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Ch 1 intro to business

  1. 1. Activity:In your notebook draw a picture of a BusinessWhat does it look like?
  2. 2. •Explain the nature of business•Describe the general types of businesses•Identify 2 ways a nation measures itseconomic growth & prosperity•Describe the benefits of business ownershipto the nation and to individuals
  3. 3. • An organization that produces or distributes a good or service for profitGoods= tangible (physical)Services= intangible
  4. 4. • 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)
  5. 5. 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
  6. 6. Is a word often used to describeALL businesses within a CATEGORYdoing similar work
  7. 7. • 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?
  8. 8. Challenges When Competing Internationally• Global Innovation• CompetitionDomestic Goods = made by US firmsForeign Goods = made by firms in other countries
  9. 9. • 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
  10. 10. • Gather customer info• Study buying habits• Test new products• Add new features• Product guarantees & follow-Up• TQM (Total Quality Management) – commitment to excellence
  11. 11. 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)
  12. 12. • 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
  13. 13. 0 2 4 6 8 10 12 14 Ita ly Fr an ce U KG er m an GDP in trillions y In di a Ja pa n C hi na EU U .S .
  14. 14. Standard of Living is ↑er in productive nationsInvestments in Human Capital
  15. 15. 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”
  16. 16. 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
  17. 17. What are the risks involved?Competition from other businessesPrice changesStyle changesCompetition from new productsChanges in economic conditions
  18. 18. 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)
  19. 19. • 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
  20. 20. 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