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

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

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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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

10. 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