1
©2013 Cengage Learnin
o re p
o sa tg ee d L teoa ran ipnugb. l iAc ll ly
©
2
0
1
3
©2013 C
Cen
ng
gage Learning. All
p
po
o s
s tt e
ed
d tt o
o a
a p
pu
ub
b ll ii c
c ll y
y a
ac
cc
ce
es
s s
s ii b
b
g. All Right
a c chet ss s iRbe lsee
R
R ii g
ghts Res e
ll e
e w
w e
eb
bs
s ii tt e
e ,,
s Res erved.
w eebds. i tMe a, y i nn
r
rv
ved. May n
ii n
n w
w h
ho
o ll e
e o
o r
r
May no t be s canned, co pied o r duplicated,
wt h bo el e s o
r i nn e d
p a r to. p i e d o r d u p l i c a t e d , o r
o
o t be s c
ca
an
n n e d ,, c
co pied o r duplicated, o r
ii n
n p
pa
ar
r tt ..
1
Business Now:
Change is the Only
Constant
LO1
What is the role of business in the
economy?
LO2
How has business evolved?
LO3
What is the role of nonprofits in
the economy?
LO4
What are the core factors of
production?
LO5
What are the elements of the
environment affecting business?
LO6
How are business trends impacting
careers?
2
©
©2
20
01
13
3 C
Ce
en
ng
ga
ag
ge
e L
Le
ea
ar
rn
n ii n
ng
g .. A
A ll ll R
R ii g
gh
h tt s
s R
Re
es
s e
er
rv
ve
ed
d .. M
Ma
ay
y n
no
o tt b
be
e s
s c
ca
an
nn
ne
ed
d ,, c
co
o p
p ii e
ed
d
p
b ll ii c
ac
s s
w e
s ii tt e
ho
o r
n p
r tt ..
po
o s
s tt e
ed
d tt o
o a
a p
pu
ub
c ll y
y a
cc
ce
es
s ii b
b ll e
e w
eb
bs
e ,, ii n
n w
w h
o ll e
e o
r ii n
pa
ar
o
o r
r
d
du
up
p ll ii c
ca
a tt e
ed
d ,, o
o r
r
Entrepreneurial Spirit
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
3
duplicated, o r
Business Basics
A business is any activity
that provides goods and
services in an effort to earn
profit.
Nonprofit
organizations focus
on causes not profit
4
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Business Basics
Profit is the financial reward
that comes from starting
and running a business.
the money that a
business earns in
sales (or revenue),
minus expenses
5
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
The History of Business:
Putting it All in Context
Mass Production
Factories
Work Specialization
Efficiency
Industrial
Revolution
Assembly Line
Consumer Power
Industrial Titans
Refining Production
Wealth Creation
Productivity Gains
Growth in
Consumerism
Satisfied Customers
Increase in Living Standard
Decrease Costs
Product Differentiation
Use of Technology
Manipulation/Competition
Hard Sell
Exploitation
No Customer Focus
Entrepreneurship
Era
Production
Era
Long-term
Relationships
Customer Focus
Marketing
Era
Relationship
Era
6
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
The Business of Doing Good
Many nonprofits work with businesses to improve
the quality of life in society.
• Business-like establishments whose primary
goal is not profits.
• Employ 1 out of 10 workers.
• Contribute to the economy
• Work with businesses to improve quality of life
7
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Factors of Production
Natural Resources
Capital
Human Resources
Entrepreneurship
• Businesses rely on
some combination of
these factors
• Entrepreneurship is a
key factor
• Growing economies
support and promote
entrepreneurship
8
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
The Business Environment:
The Context for Success
9
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Economic Environment
• Government takes an active role to support businesses

Low Federal Tax Structure

Small Business Administration

Federal Trade Commission

Legislation & Enforceable Contracts
• Corruption impacts the economic environment and can
increase the cost of running a business
10
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
2008 Economic Crisis
• The stock market tumbled and millions lost their jobs
• Housing prices plummeted and foreclosures reached record levels
• Economic turmoil in the U.S. spread around the world
• The economy begun to recover in 2009 although unemployment
remains high
• The Federal Reserve took steps to encourage a turnaround
• President Barack Obama spearheaded economic stimulus to create
jobs, build infrastructure and stabilize the economy
• The stimulus also added to the debt
11
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Competition is Intense
• Speed to Market – companies must
transform concepts into products fast
• Worker Advantage – employees
contribute to competitive edge
• Innovation – creativity matters for
individuals and the economy
12
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Companies Must Focus on Customer
Satisfaction
• Build Long-Term Relationships
• Provide Value
• Cheap Doesn’t Equal Value
• Customer Satisfaction = Profitability
13
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
Technological Environment
• Business technology includes any tools to
become more efficient and effective.



Telecommunications
Computers
Digital Tools
• Companies use technology for:



Computerized billing
Digital animation
Robotic manufacturing
• Companies that are slow to adapt have
been threatened
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
14
duplicated, o r
The World Wide Web has
Transformed Business
• e-Commerce growth has slowed since the
recession



20%+ growth in the past 5 years
Companies connect with suppliers and
distributors
Online experiences can be customized
Within five years, there will probably be
more mobile Web users than desktop users.
Source: http://www.businessweek.com/smallbiz/content/nov2010/sb20101112_047190.htm, accessed, January 17, 2011
15
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
The Social Environment
• Diversity
• Aging Population
• Rising Worker
Expectations
• Ethics & Social
Responsibility
U.S. Population Projections: 2005 – 2050, February 11, 2008, by Jeffrey S. Passel and D’Vera Cohn, Pew
Research Center website, http://pewhispanic.org/files/reports/85.pdf, accessed January 17, 2011
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
16
duplicated, o r
Economies Interact Around
the World
Technology
has forged
links
Technology
China and India’s
economies are
growing
Free Trade
War, terrorism and
disease are growing
threat
Job Migration
Blurred lines between
countries/world
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
17
o r
duplicated, o r
Business and YOU:
Making it Personal
• The changing economy rewards creativity,
communication and caring.
 There is less routine, so do what you LOVE
 Business today is global and complex
• There are a variety of exciting careers
 Learn about the industry and the company
 Be prepared to embrace change!
18
©2013 Cengage Learning. All Rights Res erved. May no t be s canned, co pied
po s ted to a publicly acces s ible w ebs ite, in w ho le o r in part.
o r
duplicated, o r
1
Looking Back
• Define business and the role of business in the economy.
• Explain the evolution of modern business.
• Discuss the role of nonprofit organizations in the economy.
• Outline the core factors of production and how they impact the economy.
• Describe today’s business environment and discuss each dimension.
• Explain how current business trends impact your career choices.
19
©
©2
20
01
13
3 C
Ce
en
ng
ga
ag
ge
e L
Le
ea
ar
rn
n ii n
ng
g .. A
A ll ll R
R ii g
gh
h tt s
s R
Re
es
s e
er
rv
ve
ed
d .. M
Ma
ay
y n
no
o tt b
be
e s
s c
ca
an
nn
ne
ed
d ,, c
co
o p
p ii e
ed
d
p
b ll ii c
ac
s s
w e
s ii tt e
ho
o r
n p
r tt ..
po
o s
s tt e
ed
d tt o
o a
a p
pu
ub
c ll y
y a
cc
ce
es
s ii b
b ll e
e w
eb
bs
e ,, ii n
n w
w h
o ll e
e o
r ii n
pa
ar
o
o r
r
d
du
up
p ll ii c
ca
a tt e
ed
d ,, o
o r
r