This document provides an overview of key concepts in business and entrepreneurship including: - Definitions of business, entrepreneur, revenue, profit, and loss. - Examples of famous entrepreneurs like Bill Gates, Warren Buffet, Oprah Winfrey, and Steve Jobs. - How businesses add to quality of life and standard of living through job creation and goods/services. - Key factors that affect businesses like the economic, legal, technological, competitive, social, and global environments.

1. * One
Chapter
*
Taking Risks
and Making
Profits within
the Dynamic
Business
Environment
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. *
NICK GRAHAM
Main Street Market
• A 17-year-old high school student
• Reopened small town’s only
grocery store
• Borrowed $22,000 to buy building
& fixtures
• Worked to save $10,000 to stock
the store
• Worked 90-100 hours per week
• Paid off loan in one year
*
Profile
1-2

3. BUSINESS and
ENTREPRENEURSHIP
*
Entrepreneurship
and
Wealth Building
LG1
*
• Business -- Any activity that seeks to provide
goods and services to others while operating at a
profit.
• Entrepreneur -- A person who risks time and
money to start and manage a business.
• Successfully filling a market need means you
could make money for yourself and provide jobs
for others.
1-3

4. Famous Entrepreneur – worldwide
Bill Gates
Warren Buffet
Oprah Winfrey
Steve Jobs
Who is he?

5. Famous Entrepreneurs –
Bangladesh
Muhammad Yunus
Latifur Rahman
Fazle Hasan Abed
Kaniz Almas

6. *Revenues,
REVENUE, PROFIT AND LOSS Profits
and Losses
• Revenue -- The total amount
LG1
*
of money a business takes in
during a given period by selling
goods and services.
• Profit -- The amount of
money a business earns above
and beyond what it spends for
salaries and other expenses.
• Loss -- Occurs when a
business’ expenses are more
than its revenues.
1-6

7. *
QUALITY of LIFE
Businesses Add
to the Standard of
Living and Quality
of Life
• Quality of Life -- The general well-being of a LG1
*
society in terms of its political freedom, natural
environment, education, healthcare, safety, amount
of leisure and rewards that add to personal
satisfaction.
• Standard of Living
1-7

8. *
Businesses Add
to the Standard of
Living and Quality
of Life
• Stakeholders -- All the people who stand to
LG1
gain or lose by the policies and activities of a
business and whose concerns the businesses
need to address.
*
• Stakeholders- customers, employees,
stockholders, suppliers, government etc.
• Non-profit organizations- school, college,
hospital, charity, RAB, police force etc.
• Outsourcing
• Social Entrepreneurs- Mohammad Yunus
1-8

9. *
WELL-KNOWN NONPROFITS
in the Bangladesh
Using
Business
Principles in
Nonprofit
Organizations
*
LG1
BRAC
Grameen Foundation
ASA
Action Aid
CARE program
Bangladesh
1-9

10. *
Entrepreneurship VS Working forBusinesses Add
to the Standard of
Living and Quality
others
of Life
LG1
Entrepreneurship
• Own the business
• Freedom to succeed as well as freedom to fail
• Do not receive any benefits such as paid
vacation time, day care, a company car or
health insurance.
Working for others
• Somebody else assumes entrepreneurial risk
• Provides with benefits such as paid vacation
and health insurance.
*
1-10

11. *
The Importance
of Entrepreneurs
to the Creation
of Wealth
FIVE FACTORS of PRODUCTION
LG2
1. Land
*
2. Labor
3. Capital
4. Entrepreneurship
5. Knowledge
• Entrepreneurs use what they’ve learned to
grow their businesses and increase wealth.
1-11

12. TODAY’S DYNAMIC
BUSINESS ENVIRONMENT
*
The Business
Environment
LG2
*
1-12

13. GOVERNMENT’S ROLE
in BUSINESS
*
The Economic
and Legal
Environment
A government can promote business by…
LG3
*
1.Minimizing spending and keeping taxes and
regulations to a minimum.
2.Allowing private ownership of businesses.
3.Minimizing interference with the free exchange of
goods and services.
4.Passing laws that enable businesspeople to write
enforceable contracts.
5.Establishing a currency that’s tradable in world
markets.
6.Minimizing corruption.
1-13

14. *
BENEFITS of TECHNOLOGY How Technology
Benefits Workers
and You
• Technology -- Everything from phones to copiers LG4
*
and the various software programs that make
businesses more effective, efficient and productive.
• Effectiveness -- Producing the desired result.
(doing the right things)
• Efficiency -- Producing goods and services using
the least amount of resources. (doing things right)
• Productivity -- The amount of output you generate
given the amount of input (example: hours you work).
• E-Commerce-- The buying and selling of goods and
services over the internet.(B2B, B2C)
1-14

15. *
BENEFITS of TECHNOLOGY
How Technology
Benefits Workers
and You
LG4
*
Universal Product Code to scan what product was
bought, in what size and color and at what price.
A scanner at the checkout counter can read that
information and put it into a database.
Database is an electronic storage file where information
is kept. One use of database is to store vast amounts of
information about customers (name, address, telephone
numbers)
Identity theft: unfortunately, the legitimate collection of
personal customer information also opens the door to
identity theft. Identity theft is the obtaining of individual
personal information for illegal purpose
1-15

16. *
Competitive Environment
The Competitive
Environment
LG5
•Focus on quality
*
•Main goal: zero defects – no mistakes in making
products.
•Offer both high quality product and outstanding
services at competitive price.
Customer is King
1-16

17. Competitive Environment
(contn)
• How competition has changes business
•
•
•
•
•
•
•
Traditional Business
Customer Satisfaction
Customer Orientation
Profit Orientation
Reactive Ethics
Product orientation
Managerial Focus
World Class Business
Delight the customer
Customer and Stakeholder Orientation
Profit & Social Orientation
Proactive ethics
Quality and service orientation
Customer Focus

18. *
Social Environment
The Social
Environment
and Managing
Diversity
LG6
• Demography
*
• Diversity has grown from just
recruiting minority and female
workers.
• Two income families
1-18

19. IMPORTANT CHANGES to the
GLOBAL ENVIRONMENT
*The Global
Environment
LG7
*
1. Growth of global competition
2. Increase of free trade among nations
3. More efficient distribution systems and
communication advances.
1-19

20. INCREASING COSTS of the
GLOBAL ENVIRONMENT
*The Global
Environment
LG7
*
• Wars, like those in Iraq and
Afghanistan, cost billions of
dollars.
• Tax money is diverted.
• Cost of security goes up.
• Cost of insurance goes up.
1-20

21. Dealing With A
Multicultural Workforce
• Show Respect For Others Cultures
• Avoid Stereotyping
• Avoid Imposing Your Cultural Values On
Others