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- 37. 1- Sekian dan Terima Kasih
Editor's Notes
- See Learning Goal 1: Describe the relationship of businesses’ profit to risk assumption and discuss how businesses and nonprofit organizations add to the standard of living and quality of life for all. See text pages: 4-7
- Also available on a Transparency Acetate See Learning Goal 1: Describe the relationship of businesses’ profit to risk assumption and discuss how businesses and nonprofit organizations add to the standard of living and quality of life for all. Objectives of Business This slide highlights the four key objectives of business in our free enterprise economy. a. Net Profit is necessary for companies to grow their business. b. Starbucks opened its first store in 1971 in Seattle, WA. In May 2006, the store count was 10,801. In 2005, Starbucks had $6.4 billion in revenues, earned $494 million in net profits and employed over 100,000 partners (employees). (Source: starbucks.com.) c. Going into 2004, Starbucks had received 20 awards from a diverse group of organizations for its philanthropic, community service, and environmental activities. Every year Starbucks also publishes its Corporate Social Responsibility Annual Report (Source: starbucks.com) c. To survive in a competitive business environment, companies may have to reduce their workforce and/or close plants. In first quarter of 2006, Ford reported a loss of $1.19 billion and announced that it will close 14 plants and cut 30,000 factory jobs in North America. (Source: Reuters via yahoo! News, 4/21/06.)
- See Learning Goal 2: Explain the importance of entrepreneurship to the wealth of an economy. See text page: 9
- Also available on a Transparency Acetate See Learning Goal 3: Examine how the economic environment and taxes affect businesses. See text page: 11
- See Learning Goal 3: Examine how the economic environment and taxes affect businesses. See text pages: 11-12
- Also available on a Transparency Acetate See Learning Goal 3: Examine how the economic environment and taxes affect businesses. Government Takeover Oil prices have risen over 250% in last six years. With the soaring energy prices, countries like Russia, Venezuela, and Bolivia are nationalizing their oil and natural gas resources. Ask the students: Why governments would nationalize industries/assets such as oil? ( More control and profits ) What impact would this trend have on international companies? (Loss of / Threat to assets, profits, capitalism and independence; companies would not do business in such countries or look to exit)
- See Learning Goal 4: Illustrate how the technological environment has affected businesses. See text page: 12-15
- See Learning Goal 4: Illustrate how the technological environment has affected businesses. Identity Theft The number of ID theft cases are rising every year. From 2003 to 2005, the number of complaints increased by about 20%. About 29% of the victims were between the ages of 18-29 (The same age group of the students.) Top five States for identity theft (per 100,000 population): Arizona, Nevada, California, Texas, and Colorado. (Source: Identity Theft--Victim Complaint Data, 2005, Federal Trade Commission; www.consumer.gov/idtheft) Ask the students – How often do they throw mail or other documents with their personal information without shredding? (It is becoming imperative that we shred all documents with personal info and keep the sharing of private info such as credit card, bank account info, and social security numbers with very limited number of people.)
- Also available on a Transparency Acetate See Learning Goal 3: Examine how the economic environment and taxes affect businesses. Corrupt Countries Transparency International conducts and publishes the corruption studies annually. The most corrupt countries on the list appear to be Asian countries with Bangladesh leading. The least corrupt country is Iceland. Ask the students what impact does corruption have on business? (Businesses do not flourish and capitalism and economic independence is suppressed creating a very negative business and social environment. Most corrupt countries also tend to be the developing third world countries)
- Also available on a Transparency Acetate See Learning Goal 4: Illustrate how the technological environment has affected businesses. Identity Theft As many as one in six people are now vulnerable to identity theft. Request one credit report every four months from one of the three credit bureaus. Offer your driver license number instead of your social security number. Shred any documents or records that could be discovered by other people.
- Also available on a Transparency Acetate See Learning Goal 5: Identify various ways in which businesses can meet and beat competition. See text pages: 15-16
- Also available on a Transparency Acetate See Learning Goal 5: Identify various ways in which businesses can meet and beat competition. Consumer Trends Dynamic changes in the business environment are on-going. To remain successful, companies must study the environment to take advantage of consumer opportunities. Ask the students – why is the popularity of water increasing? (Health trends) Ask the students – What do they prefer as a drink of choice when thirsty? (Carbonated soda drinks are still number one ahead of bottled water.) How can beverage companies like Coca-cola and Pepsi compete with water? (These companies are introducing low calorie/no calorie drinks, more healthy drinks such as fruit juices, and finally each of them have also introduced their line of water. Coca-cola – Dasani water; Pepsi – Aquafina.)
- See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. See text pages: 16-18
- Also available on a Transparency Acetate See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. U.S. Household Size 1. Households are defined as a household maintained by a family group, and include any unrelated people residing there. 2. In 1900, the average household size was 4.6 members; In the year 2000, it was 2.62 members, and in 2004 it was 2.57. (Source: U.S. Census Bureau, 6/29/05) 3. The decrease in household members from 1900 to today, is approximately 44%.
- See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. Buying Power of Diverse Groups This slide identifies the opportunities for demographers and savvy marketers to capture the looming potential of these consumer categories. By 2007, the Selig Center for Economic Growth projects buying power at: Hispanics $926.1 Billion African-Americans 852.8 Asians 454.9 Native-Americans 57.3 Point out to the students that differences in (buying power) and spending by race and ethnic groups suggest that one general advertisement for all consumers misses potential market opportunities.
- See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. 21st Century Diversity Issues This slide acknowledges the social issues facing American Business in the 21st Century. Gender is increasingly becoming an influence on business. It’s estimated that 80-85% of all consumer goods are influenced by women. (Source: Business Trends) Ask the student why it’s important for business to understand these issues? ( Understanding these issues can often identify opportunities that have been missed in the past due to lack of knowledge and understanding of diversity.)
- Also available on a Transparency Acetate See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. Immigration This slide acknowledges the immigration issues facing America today. Immigration debate is taking the center stage and many in politics are attempting to legislate what to do about illegal immigrants. Ask the students – how do illegal immigrants affect our economy? How is it different from the legal immigrants? (Key difference between the legal and illegal immigrants can be the contribution to the economy and taxes. The illegal immigrants often take on the jobs that others do not want but they also affect the healthcare system adversely.)
- See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. Older Americans Working Americans are working longer on the job than in years past. Approximately 75% of men, aged 55-59, are working; about 63% of women in this category are working. (Source: USA Today) Over 19% of men, and 10% of women, 65 years or older, still work. Ask the students why older workers feel the need to continue to work at advancing ages? ( Possible reasons include but are not limited to: Rising healthcare costs, increased health and quality of life aspects, and weak stock market.)
- Also available on a Transparency Acetate See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. American Living Longer The U.S. life expectancy has grown from 47.3 years in 1900s to a record 77.9 years in 2004. Ask the students – why is the life expectancy increasing? (Some of the reasons would be better healthcare, modern medicine, and quality of life.) Ask the students – what does this trend mean for businesses? (Some of the answers would be aging population as a market for retail and consumer goods, more need for healthcare and government services, and more people available in the workforce for a longer timeframe.)
- Also available on a Transparency Acetate See Learning Goal 6: Demonstrate how the social environment has changed and tell what the reaction of the business community has been. Exurbs: Growth of Outer Suburbs Migration trend in the U.S. shows northeasterners are moving south and west, and west coast residents are moving inland. Ask the students – why do they believe that people would make such moves? (Some of the possible answers would be cheaper housing, open space, quality of life, and better job market.)
- See Learning Goal 7: Analyze what businesses must do to meet the global challenge, which includes war and terrorism. See text page: 18-20
- See Learning Goal 7: Analyze what businesses must do to meet the global challenge, which includes war and terrorism. The Economic Cost of Disaster Disasters, natural or from terrorism, carry a significant economic cost. The 9/11 disaster alone had the following economic impact on our country: Insurance liability from the attacks; $70 Billion (estimate) Drop in consumer confidence; (-16.4%) Hotels projected change in Net Income; (-60%) Aerospace Industry forecasted change in net income; (-50%) (Source: Business 2.0, 11/01)
- See Learning Goal 7: Analyze what businesses must do to meet the global challenge, which includes war and terrorism. Does Global Experience Help Your Career ? Chief Financial officers have responsibility for a company’s financial health and raising capital for investment in a Global Economy. International experience is necessary to establish Banking partnerships to remain competitive in a changing global market. International experience will help a company identify business opportunities while reducing a company’s exposure to risk.
- See Learning Goal 8: Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate. See text pages: 20-21
- Also available on a Transparency Acetate See Learning Goal 8: Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate. Trends in Business Dynamic changes in the business environment occur on a constant basis. To remain successful, companies must study the environment to take advantage of opportunities and avoid threats: Socio-cultural changes – become the leader at identifying change. Competition – know strengths and weaknesses of your competitors. Economy – be aware of your financial climate. Legal-Political – know present laws and potential future regulations Technology – focus on continually improving each process you do. Business must increase employee training to improve decision-making. The aging American workforce will require companies to develop technology to replace workers.
- See Learning Goal 8: Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate. Leveraging Diverse Workforce With advancement in technology, travel, and communication, the world is becoming smaller everyday. To understand and identify with the diverse customers, organizations must actively leverage its diverse workforce to gain competitive advantage. Ask the students – what other ways an organization can leverage its diverse workforce? [Some additional ways can be: recruiting diverse employees, taking advantage of diverse experiences of employees, mentoring programs, etc. (source: SHRM Weekly Survey)]
- Also available on a Transparency Acetate See Learning Goal 8: Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate. Skill Level Required America is rapidly changing from an industrial economy to a service and information economy. (Industrial output as a percent of Gross Domestic Product has dropped from 19% in 1999, to 11% in 2003) It’s predicted that over 35 million workers will need to upgrade their job skills to meet the changes in our economy. Over 40% of the American jobs in the 21st century will require higher levels of skill (Levels 5 & 6) Only 2% of the jobs in this country can be filled with workers with low levels of skill. (Levels 1 & 2)
- Also available on a Transparency Acetate See Learning Goal 8: Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate. Current Skill Level Current skills as outlined by this slide must overlap with the required skills of the workforce. If not, American business will face a significant shortage of skilled workers. Not only are employees looking for skilled workers, they are seeking more business-aware staff to compete in today’s market. (Source: The Graduate Recruitment Trends Survey, 2002/03) Only 6.6% of the workers have high levels of skills, while the market needs 40% of its workers having such skills. Unless future workers acquire such training, business will feel the impact.