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

* * Entrepreneurship and Wealth Building 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. BUSINESS and ENTREPRENEURSHIP LG1 1-2

Famous Entrepreneur – worldwide Bill Gates Steve Jobs Warren BuffetWho is he? Oprah Winfrey

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

A Bangladeshi Business Conglomerate Square Toiletries Ltd. Square Pharmaceuticals Ltd. Square Textiles Ltd. Square Spinnings Ltd. Square Consumer Products Ltd. Square Health and Hygiene Product Ltd. Square Agro Development and Processing Ltd. Square Knit Fabrics Ltd. Square Fashions Ltd. Square Securities Management Ltd. Square InformatiX Ltd. Square Herbal and Nutraceuticals Ltd. Square Cephalosporins Ltd. Square Yarns Ltd. Square Biotechs Ltd. Square Holdings Ltd. Sabazpur Tea Company Ltd. Square Air Limited Maasranga Television Maasranga Production Media Com

A Multinational Business Operating in Bangladesh

* * Revenues, Profits and Losses Revenue -- The total amount 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. REVENUE, PROFIT AND LOSS LG1 1-7

Living a life & Being Happy Doing something that others value In return you get something that you value. Is it all about making money then? 1-8 NO

* * Businesses Add to the Standard of Living and Quality of Life Quality of Life -- The general well-being of a 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 QUALITY of LIFE LG1 1-9

* * Businesses Add to the Standard of Living and Quality of Life Stakeholders- customers, employees, stockholders, suppliers, government etc. Non-profit organizations- school, college, hospital, charity, RAB, police force etc. Outsourcing Social Entrepreneurs- Mohammad Yunus LG1 1-10

* * Businesses Add to the Standard of Living and Quality of Life 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. Entrepreneurship VS Working for others LG1 1-11

* * The Importance of Entrepreneurs to the Creation of Wealth 1. Land 2. Labor 3. Capital 4. Entrepreneurship 5. Knowledge Entrepreneurs use what they’ve learned to grow their businesses and increase wealth. FIVE FACTORS of PRODUCTION LG2 1-12

* * The Business Environment TODAY’S DYNAMIC BUSINESS ENVIRONMENT LG2 1-13

* * The Economic and Legal Environment A government can promote business by… 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. GOVERNMENT’S ROLE in BUSINESS LG3 1-14

* * How Technology Benefits Workers and You Technology -- Everything from phones to copiers 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 thing rights ) 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) BENEFITS of TECHNOLOGY LG4 1-15

Efficiency is about doing the same with less OR Productivity is doing more with less

* * How Technology Benefits Workers and You 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 BENEFITS of TECHNOLOGY LG4 1-17

* * The Competitive Environment 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 Competitive Environment LG5 1-18

* * The Social Environment and Managing Diversity Demography Diversity has grown from just recruiting minority and female workers. Two income families Social Environment LG6 1-19

* * The Global Environment 1. Growth of global competition 2. Increase of free trade among nations 3. More efficient distribution systems and communication advances. IMPORTANT CHANGES to the GLOBAL ENVIRONMENT LG7 1-20

* * The Global Environment 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. INCREASING COSTS of the GLOBAL ENVIRONMENT LG7 1-21

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