the changing face of business business – all profit-seeking activities and enterprises that...
TRANSCRIPT
Business – all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.
Tangible goods (product) / Intangible goods (services)Profits – rewards for business people who take the
risks involved to offer goods and services to customers.Not-for-Profit Organization – business like
establishments that have primary objectives other than returning profits to their owners.
Place service over profit Private – museums, libraries, trade associations etcPublic – government agencies, political parties, labor unions
What is business?What do businesses offer?
Natural Resources – production inputs that are useful in their natural state, i.e. land, building sites, forests, minerals.
Capital – technology, tools, information, physical facilities. (invest capital)
Human Resources – Human Capital Entrepreneurship – willingness to take
risks to create and operate a business.
Factors of Production(Natural Resources, Capital, Human Resources, Entrepreneurship)
Factor of Production Corresponding Factor Payment
Natural Resources Rent
Capital Interest
Human Resources Wages
Entrepreneurship Profit
Minimizes government interference in economic activity ……. i.e. Capitalism!
Competition – battle among businesses for consumer acceptance
Competitive Differentiation – the unique combination of organizational abilities, products, and approaches that sets a company apart form competitors in the minds of consumers.Changing marketplace, consumer preferences,
differentiation of goods and services
Private Enterprise SystemAn economic system that rewards firms for their ability to identify and serve the needs and demands of customers.
Private Property – sell & buy both tangible and intangible objectsProfits – right to earn $Freedom of Choice – choose your own employmentCompetition – fair competition by allowing
government passed laws to eliminate “cut throat competition”
Basic Rights
* person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business
*creates jobs, provides innovation, drives competition
*helped create new industries, develop successful new business methods, improved US standings in global competition
Entrepreneurship
Era
•Clainolo Era – Primarily Agricultural (prior to 1776)
•Industrial Revolution – Mass Production by semiskilled workers, aided b y machines (1760 – 1850)
Era
•Industrial Entrepreneurs – Advances in technology and increased demand for manufactured goods, leading to enormous entrepreneurial opportunities (late 1800’s)
•Production – Emphasis on producing more goods faster, leading to production innovation such as assembly lines (through 1920’s)
Era
•Marketing – Consumer orientation, seeking to understand and satisfy needs and preferences of customer groups (since 1950’s)
•Relationship – Benefits derived from deep ongoing links with individual customers, employees, suppliers and other businesses (began 1990’s)
Six Eras In Business History
Relationship Management – collection of activities that build and maintain ongoing, mutually beneficial ties between a business and its customers and other parties-Gathering knowledge of customer needs and
preferences and applying that understanding to get as close to the customer as possible
Today contact management systems, sales systems, (technology had advanced this practice)
Relationship Management
Partnership – an affiliation of two or more companies that help each other achieve common goals
Strategic Alliance – a partnership formed to create a competitive advantage for the businesses involvedExample – EBay – online business teams up
with stores to sell extra merchandise
Strategic Alliances and Partnerships
Aging Population
Shrinking labor Pool
Increasing Diverse
Workforce
Outsourcing
Employer /Employee Partnership
OutsourcingOff shoring
Near shoring
“The most important thing
any company can do is hire the smartest
people possible and then give
them the resources to
transform their ideas into
reality” – Bill Gates -
Changes in the Workforce
Vision – the ability to perceive marketplace needs and what an organization must do to satisfy them.
Critical Thinking – ability to analyze and assess information to pinpoint problems or opportunities
Creativity – the capacity to develop novel solutions to perceived organizational problems
Business Ethics – standards of conduct and moral values involving decisions made in the work environment
Social responsibility – mgmt philosophy that include contributing resources to the community preserving the natural environment, and developing or participating in nonprofit programs designed to promote the well-being of the general public
Change is Good