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Tangible products such as computers, food, clothing, cars, and appliances.
Intangibles products ( products that can't be held in your hand) such as education, healthcare, insurance, recreation, travel and tourism.
Any activity that seeks to provide goods and services to others while operating at a profit.
A person who risks time and money to start and manage a business.
The total amount of money a business takes in during a given period by selling goods and services.
The amount of money a business earns above and beyond what it spends for salaries and other expenses.
When a business's expenses are more than its revenues.
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
Standard of Living
The amount of goods and services people can buy with the money they have.
Quality of Life
The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide.
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks.
An organization whose goals do not include making a personal profit for its owners or organizers.
Factors of Production
The resources used to create wealth: land, labor, capital. entrepreneurship, and knowledge.
The surrounding factors that either help or hinder the development of businesses.
Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more effective, efficient, and productive.
The amount of output you generate given the amount of input (e.g., hours worked).
The buying and selling of goods over the internet.
An electronic storage file for information.
The obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes.
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.
The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.
The movement of the temperature of the planet up or down over time.
The trend toward saving energy and producing products that cause less harm to the environment.
Natural resources are used to make homes, cars, and other products.
People have always been an important resource in producing goods and services, but many people are now being replaced by technology.
Includes machines, tools, buildings, and other means of manufacturing.
All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources.
Information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired goods and services.
5 Elements in Business Environment
- The economic and legal environment
- The technological environment
- The competitive environment
- The social environment
- The global business environment
The Economic and Legal Environment
- Freedom of ownership
- Contract laws
- Elimination of corruption
- Tradable currency
- Minimum taxes and regulation
The Technological Environment
- Information technology
- Bar codes
- The Internet
The Competitive Environment
- Customer service
- Stakeholder recognition
- Employee service
- Concern for the environment
The Social Environment
- Demographic changes
- Family changes
Traditional Businesses vs. Modern Businesses
- Traditional Businesses
- Customer satisfaction
- Customer orientation
- Profit orientation
- Reactive ethics
- Product Orientation
- Managerial focus
- Modern Businesses
- Delighting the customer
- Customer and stakeholder orientation
- Profit and social environment
- Proactive ethics
- Quality and service orientation
- Customer focus
Who are stakeholders, and which stakeholders are most important to a business?
Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, the media, people in the local community, environmentalists and elected government leaders. the goal of business leaders is to try to recognize and respond to the needs of these stakeholders and still make a profit.
What are the advantages and disadvantages of entrepreneurship?
Working for others means getting benefits like paid vacation and health insurance. Entrepreneurs are people who risk time and money to start and manage a business. What makes rich countries rich today is a combination of entrepreneurship and the effective use of knowledge.
How has technology benefited workers, businesses, and consumers?
Technology enables workers to be more effective, efficient, and productive.
Doing the right thing in the right way.
Producing items using the least amount of resources.
What are some ways in which businesses meet and beat competition?
Some companies have found a competitive edge by focusing on making high-quality products, all the way to zero defects. Companies also aim to exceed customer expectations. Often that means empowering frontline workers by giving them more training and more responsibility and authority.
How have social changes affected businesses?
Diversity has come to mean much more than recruiting and keeping minority and female employees. diversity efforts now include seniors, disabled people, homosexuals, atheist, extroverts, introverts, married people, singles, and devout. It also means dealing sensitively with workers and cultures around the world. Providing Social Security benefits to senior citizens in the future will draw huge amounts of money from working population. That is why there is so much discussion about Social Security in the media today.
Which countries are creating the greatest challenges?
China and India are two major competitors.
What will be the impacts of future wars and terrorism?
Some businesses, such as those in the defense industry, may prosper. Others, such as tourism, may suffer. One way to minimize world tensions is to help less developed countries to become more prosperous.
What is the history of our economic development in the United States, and what does it tell us about the future?
Agricultural workers displaces by improved farm technology went to work in factories. Improved manufacturing productivity and increased competition from foreign firms contributed to the development of a service economy in the United States. The service era is now giving way to an information-based global revolution that will affect all sectors of the economy. The secret to long-term success in such an economy is flexibility and continuing education to be prepared for the opportunities that are sure to arise.
What job opportunities for college graduates exist in the service sector?
- Lodging services
- Personal services
- Business services
- Automotive repair services and garages
- Miscellaneous repair services
- Motion picture industry
- Amusement and recreation services
- Health services
- Legal services
- Educational services
- Social services
- Noncommercial museums, art galleries, and botanical and zoological gardens
- Selected membership organizations
- Financial services
- Miscellaneous services