2. The Changing Face of Business

3. Business – all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Tangible goods (product) / Intangible goods (services) Profits – rewards for business people who take the risks involved to offer goods and services to customers. Not-for-Profit Organization – business like establishments that have primary objectives other than returning profits to their owners. Place service over profit Private – museums, libraries, trade associations etc Public – government agencies, political parties, labor unions

4. Natural Resources – production inputs that are useful in their natural state, i.e. land, building sites, forests, minerals. Capital – technology, tools, information, physical facilities. (invest capital) Human Resources – Human Capital Entrepreneurship – willingness to take risks to create and operate a business. Factor of ProductionCorresponding Factor Payment Natural ResourcesRent CapitalInterest Human ResourcesWages EntrepreneurshipProfit

5. Minimizes government interference in economic activity ……. i.e. Capitalism! Competition – battle among businesses for consumer acceptance Competitive Differentiation – the unique combination of organizational abilities, products, and approaches that sets a company apart form competitors in the minds of consumers. Changing marketplace, consumer preferences, differentiation of goods and services

6. Private Property – sell & buy both tangible and intangible objects Profits – right to earn $ Freedom of Choice – choose your own employment Competition – fair competition by allowing government passed laws to eliminate “cut throat competition”

7. * person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business *creates jobs, provides innovation, drives competition *helped create new industries, develop successful new business methods, improved US standings in global competition

8. Era Clainolo Era – Primarily Agricultural (prior to 1776) Industrial Revolution – Mass Production by semiskilled workers, aided b y machines (1760 – 1850) Era Industrial Entrepreneurs – Advances in technology and increased demand for manufactured goods, leading to enormous entrepreneurial opportunities (late 1800’s) Production – Emphasis on producing more goods faster, leading to production innovation such as assembly lines (through 1920’s) Era Marketing – Consumer orientation, seeking to understand and satisfy needs and preferences of customer groups (since 1950’s) Relationship – Benefits derived from deep ongoing links with individual customers, employees, suppliers and other businesses (began 1990’s)

9. Relationship Management – collection of activities that build and maintain ongoing, mutually beneficial ties between a business and its customers and other parties -Gathering knowledge of customer needs and preferences and applying that understanding to get as close to the customer as possible Today contact management systems, sales systems, (technology had advanced this practice)

10. Partnership – an affiliation of two or more companies that help each other achieve common goals Strategic Alliance – a partnership formed to create a competitive advantage for the businesses involved Example – EBay – online business teams up with stores to sell extra merchandise

11. Why do businesses utilize the green advantage?

12. Aging Population Shrinking labor Pool Increasing Diverse Workforce Outsourcing Employer /Employee Partnership Outsourcing Off shoring Near shoring “The most important thing any company can do is hire the smartest people possible and then give them the resources to transform their ideas into reality” – Bill Gates -

13. Vision – the ability to perceive marketplace needs and what an organization must do to satisfy them. Critical Thinking – ability to analyze and assess information to pinpoint problems or opportunities Creativity – the capacity to develop novel solutions to perceived organizational problems Business Ethics – standards of conduct and moral values involving decisions made in the work environment Social responsibility – mgmt philosophy that include contributing resources to the community preserving the natural environment, and developing or participating in nonprofit programs designed to promote the well-being of the general public

14. What makes a good company ?