Introduction to Business Administration Bill Klinger Introductions Me You Syllabus Class procedures Class expectations Daily Listen to 1130 AM Read business section of newspaper

Course Overview What is business? How does it work? Economics Accounting Finance Management Human Resources Production and Operations Marketing and Sales How it applies to you

Introduction to Business

What is Business? All profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Profits—rewards for businesspeople who take the risks involved to offer goods and services to customers. Consists of all profit-seeking activities and enterprises that provide goods (tangible items) and services necessary to an economic system 1. Provides the means through which standards of living improve 2. An exchange between a buyer, who recognizes the need for a good or services, and a seller, who receives money for the good or service 3. Provides profits or rewards for businesspeople, who take risks in blending people, technology and information to create and market want-satisfying goods and services 4. Businesspeople also recognize social and ethical responsibilities to employees, customers, suppliers, competitors, government and the general public

The Private Enterprise System Economic system that rewards businesses for their ability to perceive and serve the needs and demands of customers. Competition - battle among businesses for consumer acceptance “Invisible Hand” - from Adam Smith’s book The Wealth of Nations. Individuals, acting in their own self-interest, will collectively make the best decisions. We vote with our dollars! Capitalism An economic system that rewards businesses for their ability to perceive and serve the needs and demands of consumers 1. Minimizes government interference in economic activity 2. Also called capitalism, and was first identified by Adam Smith in his 1776 book, The Wealth of Nations, in which he described the invisible hand of competition 3. Competitive differentiation, is the unique combination of organizational abilities and approaches that set a company apart from competitors in the minds of consumers

Factors of Production Four basic inputs for effective operation: Factors of Production – four basic inputs required for effective operation. 1. Natural Resources – all product inputs that are useful in their natural state, such as: a. agricultural land b. building sites c. forests d. mineral deposits 2. Capital, includes: a. technology – machinery and equipment as production lines, telecommunications and basic inventions. b. tools c. information d. physical facilities e. money 3. Human Resources – anyone who works, encompassing both physical labor and intellectual contributions. 4. Entrepreneurship – the willingness to take risks to create and operate a business.

Entrepreneurship Entrepreneur risk taker in the private enterprise system. does it for profits and ends up benefiting the economy society. The Entrepreneurship Alternative - individuals who are willing to take risks in the private enterprise system 2. Entrepreneurs find novel ways to use natural resources, technology, and other factors of production 3. Entrepreneurs are also important to existing large companies by enhanced flexibility, improved innovation and new market opportunities 4. Entrepreneurs have also been significant in U.S. history by creating new industries, developing successful business methods and improved U.S. standing in the global markets

Homework Professional Documents See template on website Characteristics Clean look Simple fonts Bold headings Repeat the question Do not be wordy/folksy Do not use “I” Do not use “a lot”, “a large number”, etc. Always give data to support your statement Always give references