Chapter 1 Managing Within the Dynamic Business Environment © 2010 McGraw-Hill Ryerson Limited Slides by Professor Tim Richardson of the School of Marketing and eBusiness, Seneca College and the Dept. of Management, University of Toronto (UTSC)

Learning Objectives 1.Business’s profit/risk assumption 2.Stakeholder roles 3.Role of entrepreneurship in wealth creation 4.Elements of business environment 5.Rise of the service sector

Research In Motion A Canadian success story When the most powerful person on the planet uses your product…

Objectives of Business Growth Profit A business is any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses. Since not all businesses make a profit, starting a business can be risky.

Objectives of Business Survival Growth Social Responsibility Profit

Earning a Buck: Risk Reward Trade-Offs Starting a business involves risk. Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. Different people have different tolerances for risk. To decide which is the best choice for you, you have to calculate the risks and the potential rewards of each decision.

Stakeholders: Those Who Stand to Lose or Gain

Customers want value Employees want security Stockholders want returns Suppliers want to be paid Dealers want support Bankers want returns Community groups want “equity” Governments want compliance