WHAT IS BUSINESS? Business Profit Not-for-Profit Organizations Factors of Production • Natural Resources • Capital • Human Resources • Entrepreneurship

THE PRIVATE ENTERPRISE SYSTEM • Competition Basic Rights in the Private Enterprise System The Entrepreneurship Alternative

SIX ERAS IN THE HISTORY OF U.S. BUSINESS The Colonial Period (pre-1776) The Industrial Revolution (1760-1850) The Age of Industrial Entrepreneurs (late 1800s) The Production Era (through the 1920s) The Marketing Era (since 1950s) The Relationship Era (began in 1990s)

Managing Relationships through Technology • Relationship Management • Often technology-based Strategic Alliances and Partnerships • Businesses affiliate with each other through partnerships. • Form strategic alliances to create a competitive advantage.

TODAY’S BUSINESS WORKFORCE A skilled and knowledgeable workforce • Fosters strong ties with customers and partners • Improves efficiency and quality • Promotes innovation • All three provide a foundation for competitive differentiation.

Changes in the Workforce Aging of the Population • The number of Americans 65 and older will double by 2030. Shrinking Labor Pool • The U.S. may face a shortage of 10 million workers by 2010. • Immigrants represent one of every two new workers. Increasing Workforce Diversity • Immigration and growing Hispanic and Asian populations. • Diverse perspectives foster innovation and creativity.

Changes in the Workforce Outsourcing and the Changing Nature of Work • U.S. output is shifting from manufacturing to services. • Outsourcing • Offshoring and nearshoring New Employer-Employee Partnership • Companies value partnership with employees.

THE 21ST-CENTURY MANAGER Importance of Vision • Ability to perceive needs and how to satisfy them Importance of Critical Thinking and Creativity • Critical thinking—ability to pinpoint problems or opportunities • Creativity—capacity to develop solutions to perceived problems Ability to Steer Change • Changes driven by technology, marketplace demands, and global competition

WHAT MAKES A COMPANY ADMIRED? Business ethics • Standards of conduct and moral values Social responsibility • Contributing resources to promote the well-being of the general public