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Contemporary Business ch 1
Contemporary Business ch 1

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Categories:Types, Business/Law
Published by: monel_24671 on Apr 19, 2013
Copyright:Attribution Non-commercial


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The Changing Face of Business

Learning Goals

Distinguish between business and notfor-profit organizations. Identify and describe the factors of production. Describe the private enterprise system, including basic rights and entrepreneurship. Identify the six eras of business, and explain how the relationship era— including alliances, technology, and environmental concerns—influences contemporary business.


Explain how today’s business workforce and the nature of work itself is changing. Identify the skills and attributes managers need to lead businesses in the 21st century. Outline the characteristics that make a company admired by the business community.






Profit-seeking is the reward for business people who take the risk involved to offer goods and services to customers. .What is Business? Profit-seeking activities and enterprises provide goods and services necessary to an economic system.S. companies. See Fortune 500 for a list of major U.

Factors of Production Natural Resources Capital Human Resources Entrepreneurship Occupational Outlook Handbook .

.The Private Enterprise System Capitalism Adam Smith is the father of capitalism. “Invisible Hand” Economic system determines business ownership. profits. and resources Rewards firms for their ability to serve the needs of consumers Minimized government intervention Competition is the battle among businesses for consumer acceptance.

Basic Rights in a Private Enterprise System .

Entrepreneurship An Entrepreneur: Is a risk-taker Takes financial. economy Provides innovation .S. Sees a potentially profitable opportunity Devises a plan to achieve success in the marketplace and earn those profits Fuels the U. and career risks Entrepreneurial thinking is important within large firms. social. personal.

Business .S.Six Eras in the History of U.

.Managing Relationships through Connections Relationship Management Activities to build and maintain mutually beneficial ties with customers and other parties Relationship management depends on technology.

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 (see Amazon).

Today’s Business Workforce Dedicated workers who can foster strong ties with customers Capable of high-quality production Able to compete in global markets Technically savvy .

S. Many baby boomers are hitting the peak of their careers.S. workers 65 or older will reach 72 million.Changes in the Workforce: Aging Population By 2030. U. Technology has intensified the hiring challenge by requiring workers to have ever more advanced skills. while Generations X and Y are launching their careers. Census Bureau . the number of U.

The two fastest-growing ethnic populations in the United States are Hispanics and people of Asian origin. . Employee teams with individuals of different genders. religions. and physical and mental abilities are more effective. cultures. ages.S. labor pool could soon fall short by as many as 10 million people. ethnic backgrounds.Changes in the Workforce: Shrinking Labor Pool/Diversity Economists predict the U.

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 incountry. . Offshoring is the relocation of business processes to lower-cost locations overseas.

Changes in the Workforce: Innovation through Collaboration Younger workers are looking to something other than work-comes-first Telecommuting and job-sharing Part-time and temporary workers are growing Collaboration is replacing working alone Value risk-taking and innovation .

The 21st-Century Manager Critical-thinking Creativity Ability to lead change Vision .

Creativity is the capacity to develop novel solutions to perceived organizational problems. .Critical Thinking and Creativity Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities.

. Factors that require organizational change can come from external and internal sources.Ability to Lead Change Guide employees and organizations through changes Managers must be comfortable with tough decisions.

What Makes a Company Admired? Solid profits Stable growth Safe and challenging work environment High-quality goods and services Business ethics and social responsibility Fortune’s list of Most Admired Companies .

transportation .The Future of Business New Technologies Population Shifts Emerging nations Shrinking Global Barriers Trade. communication.

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