This document provides an overview of business concepts including: - The role of businesses in providing goods and services to earn a profit, while non-profits focus on causes rather than profit. - How businesses have evolved from an entrepreneurship era to today's relationship era, driven by changes in technology, globalization, and customer expectations. - The key factors of production that businesses rely on including entrepreneurship, natural resources, human resources, and capital. - The dynamic business environment influenced by economic, competitive, social, technological, and global forces, requiring businesses to adapt and change. - How current trends like the rise of China, technology, and globalization are impacting careers.

1. Chapter 1: BUSINESS NOW Change is the Only Constant

2. What is the role of business in the economy? How has business evolved? What is the role of non-profits in the economy? What are the core factors of production? What are the elements of the environment affecting business? How are business trends impacting careers? LOOKING AHEAD

3. MOVING AT BREAKNECK SPEED In the last decade: The players have changed What consumers want has changed How we buy has changed Source:http://money.cnn.com General Motors Ford Motor Exxon Mobile Wal-Mart AT&T General Electric IBM Mobil Sears Roebuck Altria Group 1995 Wal-Mart Exxon Mobil General Motors Chevron ConocoPhillips General Electric Ford Motor Citigroup Bank of America AIG Exxon Mobil General Motors Mobil Ford Motor Texaco IBM DuPont AT&T General Electric Amoco General Motors Exxon Mobil Ford Motor General Electric Mobil Chrysler US Steel Texaco IBM Gulf Oil 2007 1985 1965

4. A business is any activity that provides goods and services in an effort to earn profit. BUSINESS BASICS Non-profit organizations focus on causes not profit

5. Profit is the financial reward that comes from starting and running a business. BUSINESS BASICS the money that a business earns in sales (or revenue), minus expenses

6. NONPROFIT PARTNERSHIPS Many nonprofits work with businesses to improve the quality of life in society. Companies support their missions and improve society. The Business of Doing Good

7. ENTREPRENEURIAL SPIRIT

8. CREATIVITY MATTERS Creativity is important to the economy with global competition, the stakes are high Many of the latest inventions have come from companies this trend is likely build momentum as global competition intensifies

9. INVENTIONS WITH IMPACT Source: Encyclopedia Britannica Laptop Viagra Camcorder Cat Litter Bikinis Muzak Disposable Diapers Kool-Aid Astroturf

10. THE EVOLUTION OF BUSINESS Mass Production Factories Work Specialization Efficiency Industrial Titans Wealth Creation Increase in Living Standard Manipulation/Competition Exploitation Assembly Line Refining Production Productivity Gains Decrease Costs Hard Sell No Customer Focus Consumer Power Growth in Consumerism Product Differentiation Customer Focus Long-term Relationships Satisfied Customers Use of Technology Relationship Era Marketing Era 1950s Production Era Early 1900s Entrepreneurship Era Mid 1800s Industrial Revolution 1700-mid 1800s

11. FACTORS OF PRODUCTION Businesses rely on some combination of these factors Entrepreneurship is a key factor Most growing economies support and promote entrepreneurship Natural Resources Human Resources Capital Entrepreneurship

12. THE ELEMENTS OF THE BUSINESS ENVIRONMENT

13. DYNAMIC, CONSTANT AND ENGAGING, CHANGE Companies must respond quickly and creatively New Products Integrating Technology Creating Technologies New Businesses Innovative Processes New Target Markets….. “ “ When the change on the outside exceeds the change on the inside, the end is near.” - Jack Welch

14. ECONOMIC ENVIRONMENT Government takes an active role to support businesses Low Federal Tax Structure Small Business Administration Federal Trade Commission Legislation & Enforceable Contracts Economic Vulnerabilities CEO/Worker Pay Gap Consumer Debt Federal Debt Free Enterprise and Fair Competition Flourish in the United States

15. COMPETITIVE ENVIRONMENT Today’s competition is intense Companies must focus on customer satisfaction Build Long-Term Relationships Provide Value Customer Satisfaction = Profitability Cheap Doesn’t Equal Value

16. COMPETITIVE PRINCLIPLES Avoid your competitors’ strengths and exploit their weaknesses. Don’t try and beat them at their game. Always be a little paranoid. Never underestimate your competition. Competitors will usually get better when pushed. Competitors are sometimes irrational when pushed.

17. COMPETITION IS CHANGING

18. SOCIETY CHANGES What are our changing values and beliefs? How does the integration of other cultures change/add to values and beliefs? What demographic influences are changing the environment globally? Companies must respond to these changes in the products they sell and how they sell them.

19. AND CHANGES…… Teens today are much less likely than their parents to categorize people by race, religion, and sexual orientation. They’re more likely to notice similarities and differences in core values. Source: Diversity in Word and Deed: Most Teens Claim Multicultural Friends, press release from Teenage Research Unlimited, November 10, 2004, TRU Website, http://www.teenresearch.com/PRview.cfm?edit_id=278.

20. SOCIAL ENVIRONMENT Diversity Aging Population Rising Worker Expectations Ethics & Social Responsibility

21. GENERATION C Creating Content Customizing Products Websites Blogs Photos Ringtones Music Movies

22. TECHNOLOGICAL ENVIRONMENT Technology has transformed businesses and consumers How Companies Do Business Telecommunications Robotics Flexible Manufacturing Alternative Selling/eCommerce How Consumers Shop Online Information/Content Alternative Buying/eCommerce

23. TECHNOLOGICAL ENVIRONMENT More than 724,000 Americans report that eBay is their primary or secondary source of income, And an additional 1.5 million people say that they supplement their incomes by selling on eBay. Source: US Postal Service News Release, July 21, 2005. http://www.usps.com/communications/news/press/2005/pr05_062.pdf.

24. GLOBAL ENVIRONMENT Terrorism is more of a threat today Job Migration China and India’s economies are growing Technology Free Trade Blurred lines between countries/world Technology is linking customers/suppliers worldwide

25. GLOBAL ENVIRONMENT According to investment bank CLSA, China manufactures 80% of the world’s clocks and watches, 50% of its cameras, 30% of its microwave ovens, a quarter of its washing machines, and a fifth of its refrigerators.

26. COOLEST BRANDS Nike 30.8% Sony 15.9% Adidas 15.1% BMW 10.1% Microsoft 9.0% Coca-Cola 8.9% IBM 8.2% According to Chinese college students

27. BUSINESS AND YOU MAKING IT PERSONAL What are your passions? What are business careers that encompass your passions?

28. LOOKING BACK Define business and the role of business in the economy. Explain the evolution of modern business. Discuss the role of non-profit organizations in the economy. Outline the core factors of production and how they impact the economy. Describe today’s business environment and discuss each dimension. Explain how current business trends impact your career choices.