Introduction to Business Introduction to Business Business Defined What is a business All activities engaged in or caused to be engaged in with the object of gain benefit or advantage direct or indirect Any occupation employment or enterprise that occupies time attention labor and or material for compensation whether or not merchandise is sold or services are offered A commercial or industrial enterprise and the people who constitute it An organization created with the objective of making a profit from the sale of goods or services The activity of providing goods and services involving financial commercial and industrial aspects An organization that operates in order to make a profit also the collective word for the activities in which they engage An enterprise commercial entity or firm in either the private or public sector concerned with providing products or services to satisfy customer requirements Business the culture of sales meetings negotiations and deal making All activities involved in providing goods and services for profit or not to satisfy customer requirements Supply Chain Management General Goods Business Model Inbound Outbound Procurement Orders Human Resources Customer Service Web Presence Revenues Suppliers Finance Accounting Information Systems Marketing Payments Advertising Customer Distribution Deliveries Warehousing Inv International Global Receiving QA Warehousing Inv Manufacturing Packaging Outbound QA Introduction to Business Key Business Terms What is profit The amount remaining after all expenses have been deducted from the revenues of a business What is revenue The total amount that a business actually receives from its activities What is business risk The probability of loss associated with any business activity What is an entrepreneur A person who takes the risk of organizing operating a new business venture Introduction to Business Key Business Terms cont What are stakeholders Those entities customers employees shareholders suppliers community that stand to gain or lose by the activities of any given business What is productivity The output of a business or individual in relation to the resources time labor materials etc it consumes Key Business Terms cont Introduction to Business What are economics The study of how society chooses to employ resources which have alternative uses to produce various goods and services and distribute them for consumption among various competing groups and individuals What is technology All the physical equipment hardware software etc that make business processes more efficient and productive Introduction to Business Business Standard of Living and the Creation of Wealth President Calvin Coolidge They are profoundly concerned with producing After all the chief business of the American people is business buying selling investing and prospering in the world I am strongly of the opinion that the great majority of people will always find these are moving impulses of our life Wealth is the product of industry ambition character and untiring effort In all experience the accumulation of wealth means the multiplication of schools the increase of knowledge the dissemination of intelligence the encouragement of science the broadening of outlook the expansion of liberties the widening of culture Of course the accumulation of wealth cannot be justified as the chief end of existence But we are compelled to recognize it as a means to well nigh every desirable achievement So long as wealth is made the means and not the end we need not greatly fear it Address before the American Society of Newspaper Editors Washington D C January 17 1925 Business Standard of Living and the Creation of Wealth cont Introduction to Business A nation s standard of living is the quality of life enjoyed by its population which depends on such factors as disposable income housing conditions health education political freedom free time etc A nation s businesses can be huge contributors to the standard of living and quality of life for everyone in the country through employment taxes creation of wealth etc Economists studying the creation of wealth tend to categorize potential sources of wealth into factors of production land labor capital entrepreneurship and knowledge Environment of Business The Business Environments All businesses operate in a complex environment that encompasses many elements including Economic and Legal Competitive Technological Social Global When these elements are coordinated by both governments and businesses in a healthy way they allow businesses to grow and prosper As noted growing and prospering businesses create wealth in a Coolidge sense Introduction to Business The Business Environments cont Economic and Legal Environment Government can help create a positive business environment through a variety of areas including Freedom of Ownership Allowing private ownership is a tremendous boost to the business environment Contract and Business Laws Being able to write and enforce contracts is critical to minimizing risk Introduction to Business The Business Environments cont Economic and Legal Environment cont Governments can work to eliminate corruption throughout their various interactions with the business environment Corruption Currency Creating and maintaining a tradable currency is vital for global trade Taxes and Regulation Low taxes and less restrictive regulation attracts entrepreneurs and promotes business Introduction to Business The Business Environments cont Technological Environment Technology is anything computers software internet electronics phone systems robots machines circuits etc that increases business efficiency productivity Access to technologies can have a huge impact on business Manufacturing Technology Manufacturing technologies create incredibly complex products with extremely high levels of quality Introduction to Business The Business Environments cont Technological Environment cont Computer Hardware Software Network All information technologies associated with business creation and operation Internet E commerce The advent of internet sales has created enormous change in the very nature of business Symbologies A computer machine readable language which expresses numbers and or letters in a form which can be read easily automatically Introduction to Business The Business Environments cont Competitive Environment As defined by Canadian Foundation for Economic Education An environment in which rival sellers are
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