1 Business Now: Change is the Only Constant

BUSN ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1 Business Now:
Change is the Only
Constant

• What is the role of business in the economy?

• How has business evolved?

• What is the role of non-profits in the economy?

• What are the core factors of production?

• What are the elements of the environment affecting

business?

• How are business trends impacting careers?

BUSN ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1 Business Now: Change is the Only Constant

Business Now: Moving at Breakneck Speed

• Business – any activity that provides

goods and services in an effort to earn
profit.
− Nonprofit organizations focus on
causes not profit.
• In the last decade:
− The players have changed
− What consumers want has changed
− How we buy has changed

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 1 Business Now: Change is the Only Constant

Nonprofits and the Economy:

The Business of Doing Good

• Profit – the financial reward

that comes from starting and
running a business.
− The money that a business
earns in sales (or revenue)
minus expenses.

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 1 Business Now: Change is the Only Constant

The History of Business: Putting It All in Context

• The Industrial Revolution • The Production Era

− Mass Production − Assembly Line
− Factories − Refining Production
− Work Specialization − Productivity Gains
− Efficiency − Decrease Costs
• The Entrepreneurship Era − Hard Sell/No Customer Focus
− Industrial Titans • Marketing Era
− Wealth creation − Consumer Power
− Increase in Living Standard − Growth in Consumerism
− Competition − Product Differentiation
− Exploitation − Customer Focus
• Relationship Era
− Long-term Customer Relationship
− Use of Technology
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 1 Business Now: Change is the Only Constant

Factors of Production: The Basic Building Blocks

Businesses rely on some combination of these factors:

• Natural Resources – land, water, wind, minerals
• Capital – machines, tools, buildings, information,
technology
• Human Resources – physical, intellectual and
creative contributions of labor
• Entrepreneurship – people who take the risk
− Entrepreneurship is a key factor.
− Most growing economies support and promote
entrepreneurship.
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 1 Business Now: Change is the Only Constant

Entrepreneurial Spirit: The Richest Americans 2008

Source: “The 400 Richest Americans”, September17, 2008, Forbes Website,

http://www.forbes.com/lists/2008/54/400list08_The-400-Richest-Americans_Rank.html, accessed January 18, 2009.)

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 1 Business Now: Change is the Only Constant

The Business Environment: The Context for Success

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 1 Business Now: Change is the Only Constant

The Business Environment:

The Context for Success

• The Economic Environment – the state of the

economy and current actions by government agencies
and consumers
• The Competitive Environment – many companies
competing on customer satisfaction
− Leading Edge Products
• Speed to Market
− The Workforce Advantage
• Technological Environment – the World Wide Web
and digital tools have transformed business and
people’s lives
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 1 Business Now: Change is the Only Constant

The Business Environment:

The Context for Success

• The Social Environment

− Diversity
− Aging Population
− Rising Worker Expectations
− Ethics and Social Responsibility
• The Global Environment – the U.S. interacts with
other economies across the world, especially as
technology grows

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 1 Business Now: Change is the Only Constant

Social Environment: U.S. Population Estimates

(Source: U.S. Census Bureau, 2005-2007 American Community Survey, U.S. Census Website,
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2007_3YR_G00_DP3YR5&-
ds_name=ACS_2007_3YR_G00_&-_lang=en&-_sse=on, accessed January 19, 2009; In a Generation, Minorities May Be the U.S. Majority, by
Sam Roberts, August 13, 2008, New York Times Website,

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 1 Business Now: Change is the Only Constant

Business and You: Making it Personal

• Business will impact your life

• Your personal business skills will impact
your financial success

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 1 Looking Back

• What is the role of business in the economy?

• How has business evolved?

• What is the role of non-profits in the economy?

• What are the core factors of production?

• What are the elements of the environment affecting

business?

• How are business trends impacting careers?

BUSN ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13