1. Characteristics of Business Business Management Chapter 1

2. 3 Essential Business Activities 1. Production – making a product or providing a service 2. Marketing – elements effecting the exchange of goods and services between producers and consumers 3. Finance – the money matters related to running a business

3. Types of Businesses Commercial Businesses Commercial Businesses Engaged in marketing, finance, and customer service Engaged in marketing, finance, and customer service Examples – Retailers, Banks, Hotels, etc. Examples – Retailers, Banks, Hotels, etc.

4. Types of Businesses Industrial Businesses Industrial Businesses Businesses that produce or construct a product Businesses that produce or construct a product Examples – Mining, Manufacturing, Construction, etc. Examples – Mining, Manufacturing, Construction, etc.

5. Changing Nature of Business Channels of Distribution – trains, plains, and automobiles Channels of Distribution – trains, plains, and automobiles Innovations – computers, materials, etc. Innovations – computers, materials, etc. Global Competition – worldwide competitors, cultural differences, distribution Global Competition – worldwide competitors, cultural differences, distribution E-commerce – instant/constant connection with the market E-commerce – instant/constant connection with the market

6. Business Success Effectiveness – making correct, informed decisions Effectiveness – making correct, informed decisions Efficiency – running a business as fast and cheap as possible Efficiency – running a business as fast and cheap as possible Efficiency is measured by output (the quantity produced within a given time) Efficiency is measured by output (the quantity produced within a given time)

7. Increasing Productivity Productivity is similar to efficiency, but directed straight to production Productivity is similar to efficiency, but directed straight to production Specialization – becoming an expert at what you do Specialization – becoming an expert at what you do Mass Production – use of up-to-date equipment and assembly line methods to produce large quantities Mass Production – use of up-to-date equipment and assembly line methods to produce large quantities Technology – equipment, manufacturing processes, and materials used Technology – equipment, manufacturing processes, and materials used

8. Intrapreneurship An entrepreneurial entity working within an established business An entrepreneurial entity working within an established business Employee given funds and freedom to create a special unit or department for development Employee given funds and freedom to create a special unit or department for development Usually found in companies that place a high value on innovation, such as IBM, 3M, Apple, etc. Usually found in companies that place a high value on innovation, such as IBM, 3M, Apple, etc.