1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chapter 1 Business: 2005 and Beyond

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-2 What is Business? All profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Profits—rewards for businesspeople who take the risks involved to offer goods and services to customers.

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-3 Not-for-Profit Organizations Businesslike establishments that have primary objectives other than returning profits to their owners. The Nature Conservancy fighting to save the world’s last great places

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-4 Factors of Production Four basic inputs for effective operation: Natural Resources - land, forests, mineral deposits Capital – money, technology, tools, information, physical facilities Human Resources – anyone who works Entrepreneurship – willingness to take risks to create and operate a business

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-5 Basic Rights in the Private Enterprise System

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-6 Six Eras in the History of Business

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-7 Strategic Alliances and Partnerships Businesses must form partnerships with other organizations to take full advantage of available opportunities. Partnership: an affiliation of two or more companies with the shared goal of assisting each other in the achievement of common goals Strategic alliance: partnership formed to create a competitive advantage for the businesses involved

8. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-8 Preparing for Changes in the Workforce In the coming decades, companies will face several trends that challenge their skills for managing and developing human resources. Aging of the population. Shrinking labor pool. Increasingly diverse workforce. The changing nature of work. The new employer-employee partnership.

9. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-9 The Changing Nature of Work Outsourcing— Contracting with another business to perform tasks or functions previously handled by internal staff members The military increases its backup from private companies

10. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-10 Reaping the Benefits of Diversity Blending individuals of different ethnic backgrounds, cultures, religions, ages, genders, and physical and mental abilities can enrich a firm’s success. Coca-Cola promoting its diversity in employment