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Nickels

McHugh

McHugh

Managing Within The Dynamic Business Environment: Taking Risks and Making Profits

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McGraw-Hill/Irwin Understanding Business, 8e

2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

CHAPTER

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Business & Entrepreneurship

Business
activity providing goods and services making profit (MONEY MONEY)

Profit
business earnings minus the expenditures

Entrepreneur
The BUSINESS MAN risking the money

Match Risk With Profit

Revenue money coming in from
business activities

Loss expenses more than revenues

1-2

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Standard of Living/Quality of Life
buying capability of the population versus the general well being of society

Stakeholders
people on the line

Nonprofit Organizations
No making profit
1-3

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Entrepreneurship Vs. Working for others

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Creating Wealth: Factors of Production

Land natural resources Labor- people Capital- machines, buildings, etc Entrepreneurship- entrepreneurs Knowledge- information availability

1-5

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Business Environment
Global Business Economic & Legal

Social

Technology

Competitive

1-6

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Economic & Legal Environment

$ Minimum taxes and regulations $ Freedom of ownership $ Contract laws $ Tradable currency $ Elimination/minimization of

corruption
1-7

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Technological Environment
Productivity
Efficiencyminimum resource use Effectivenessdesired result

E-Commerce amazon, ebay Responsiveness to Customer

1-8

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Competitive Environment
Customer Expectations know your customers wants and needs be proactive and also reactive

Restructure/Empower give authority

1-9

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Social Environment
Diversity/Multicultural

Two-Income Familiessupporting women

Single-Parent Families

1-10

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Global Environment
International Competition and Free Trade Improvements in Transportation and Communication War & Terrorism Global Changes changing world

1-11