Chapter 1 The framework of Contemporary Business
1. Distinguish between business and not-for-profit organizations. 2. Indentify and describe the factors of production.
3. Describe the private enterprise system, including basic rights and entrepreneurship 4. Indentify the six eras of business and explain how the relationship era – including alliances, technology, and environmental concerns-influences contemporary business. 5. Explain how today’s business workforce is changing.
6. Describe how the nature of work itself is changing
7. Indentify the skills and attributes managers need to lead businesses in the 21st century. 8.
What is business?
* Profit-seeking activities and enterprises provide goods and services necessary to an economic system. * Profit is the reward for businesspeople who take the risk involved to offer goods and services to customers. Factors of Production
* Natural resources
* Human resources
The private enterprise
* Economic system determines business ownership, profits and resources * Rewards firms for their ability to serve the needs of consumers * Minimized govt intervention
* Competition is the battle among businesses for consumer acceptance. Basic Rights in the Private Enterprise
* Freedom of Choices
* Private property
The Entrepreneurship Alternative
* The risk-taker
* Fuels the U.S. economy
* Provides innovation
* Entrepreneurial thinking is important inside of large firms. Six Eras in the History of US Business
* Colonial (prior to 1776)
* Industrial revolution (1760-1850)
* Industrial entrepreneurs (late 1800s)
* Production (through the 1920s)
* Marketing (since 1950s)
* Relationship (began in 1990s)
Managing Relationships through Connections
* Relationship management
* Activities to build and maintain mutually beneficial ties with customers and other parties. Strategic Alliances and Partnerships
* A partnership is an affiliation of two or more companies that help each other achieve common goals * A strategic alliance is a partnership formed to create a competitive advantage for both parties. Today’s business workforce
* Dedicated workers who can foster strong ties with customers * Capable of high-quality production
* Ability to compete in global markets
* Technically savvy
Changes in the workforce - aging population
* By 2030, the number of U.S. workers 65 or older will reach 72 million. * Many baby boomers are hitting the peak of their careers while Generation X and Y are launching their careers. * Technology his intensified the hiring challenge by requiring workers to have ever more advanced skills. Changes in the workforce – shrinking labor pool/diversity
* Economists predict the U.S. labor pool could soon fall short by as many as 10 million people. * The two fastest-growing ethnic populations in the U.S. are Hispanics and people of Asian origin. * Blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities. Changes in the workforce – outsourcing
* Outsourcing is using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country. * Off shoring is the relocation of business processes to lower cost locations overseas.
Chapter 2 Business Ethics
1. Explain the concepts of business ethics and social responsibility. 2. Describe the factors that influence business ethics.
3. List the stages in the development of ethical standards. 4. Indentify common ethical dilemmas in the workplace.
5. Discuss how organizations shape ethical behavior
6. Describe how businesses’ social responsibility is measured 7.
Concern for ethical and societal...