Developing a

Business
Mindset

#1
Copyright
© 2012
Pearson Education,
Copyright
© 2015
Pearson
Education, Inc.
Inc. Publishing as Prentice Hall

1-1

1. Explain the concept of adding value in a business
and identify the major types of businesses
2. List three steps you can take to help make the leap
from a consumer to a business professional
3. Discuss the five major environments in which every
business operates
4. Explain the purpose of the six major functional
areas in a business enterprise
5. Summarize seven of the most important business
professions
6. Identify seven components of professionalism

Copyright © 2012 Pearson
Copyright
© 2015
Education,
Inc.
Education,
Inc.Pearson
Publishing
as

1-2

Knowing the Language of Business









Business
Profit
Value
Loss
Revenue
Not-for profit organizations
Competitive advantage
Environments of business
Risk
Reward









Standard of living
Quality of life
Research and development
Information technology
Manufacturing and production
Marketing
Finance and accounting
Human resources
Professionalism

Copyright
© 2012
Pearson Education,
Copyright
© 2015
Pearson
Education, Inc.
Inc. Publishing as Prentice Hall

1-3

Inc. computer chips – Services . Inc. lodging Copyright © 2012 Pearson Education. Publishing as Prentice Hall 1-4 .insurances.automobiles. Copyright © 2015 Pearson Education. car rentals. breakfast cereals. music concerts.The Concept of Business and Profit • Business: an organization that provides goods or services to satisfy customer’s needs and to earn profits – Tangible goods .

Adding Value: the Business of Business Revenue Money a company brings in through the sale of goods and services Profits difference between a business’s revenues and its expenses Copyright © 2012 Pearson Education. Inc. Inc. Publishing as Prentice Hall 1-5 . Copyright © 2015 Pearson Education.

Why is Business Important Impacts our standard of living Impacts our quality of life Copyright © 2012 Pearson Education. Copyright © 2015 Pearson Education. Inc. Inc. Publishing as Prentice Hall 1-6 .

art. Inc. religion and culture • Nonprofits contribute to the economy • Nonprofits are organizations that also require management • Many nonprofits work with businesses to improve the quality of life in society Copyright © 2012 Pearson Education.Identifying Major Types of Businesses Not-for-profit organizations • Organizations that provide goods and services without having a profit motive. Inc. these are also called nonprofit organizations • Nonprofits focus on health. Copyright © 2015 Pearson Education. human services. education. Publishing as Prentice Hall 1-7 .

Adding Value: the Business of Business Copyright © 2012 Pearson Education. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-8 . Inc. Inc.

Inc. Publishing as Prentice Hall 1-9 . Inc. Copyright © 2015 Pearson Education.Adding Value: the Business of Business Business model A concise description of how a business intends to generate revenue Copyright © 2012 Pearson Education.

Copyright © 2012 Pearson Education.Competing to Attract and Satisfy Customers Competitive advantage • Some aspect of a product or company that makes it more appealing to target customers • A unique combination of organizational abilities and approaches that sets a company apart from competitors. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-10 . Inc. Inc.

Inc. Publishing as Prentice Hall 1-11 .” most of which are tangible Service businesses – Companies that create value by performing activities that deliver some benefit to customers Copyright © 2012 Pearson Education. Copyright © 2015 Pearson Education.Identifying Major Types of Businesses Goods-producing businesses Companies that create value by making “things. Inc.

Publishing as Prentice Hall 1-12 .Risk and Reward Copyright © 2012 Pearson Education. Inc. Copyright © 2015 Pearson Education. Inc.

Inc. Publishing as Prentice Hall 1-13 . Copyright © 2015 Pearson Education. Inc.Risk and Reward Copyright © 2012 Pearson Education.

Any resource or capability a company must have before it can start competing in a given market Copyright © 2012 Pearson Education.Risk and Reward Goods producing businesses are often capital-intensive businesses Service businesses tend to be laborintensive businesses Barrier to entry . Inc. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-14 . Inc.

Publishing as Prentice Hall 1-15 .Seeing Business from the Inside Out Business mindset A view of business that considers the myriad decisions that must be made and the many problems that must be overcome before companies can deliver the products that satisfy customer needs Copyright © 2012 Pearson Education. Inc. Copyright © 2015 Pearson Education. Inc.

The Business Mindset Copyright © 2012 Pearson Education. Inc. Inc. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-16 .

Positive and Negative Effects of Business Copyright © 2012 Pearson Education. Copyright © 2015 Pearson Education. Inc. Publishing as Prentice Hall 1-17 . Inc.

Inc. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-18 .The Multiple Environments of Business Copyright © 2012 Pearson Education. Inc.

Publishing as Prentice Hall 1-19 . Inc. Inc. Copyright © 2015 Pearson Education.Recognizing the Multiple Environments of Business Social environment Trends and forces in society at large • Diversity • Aging Population • Rising Worker Expectations • Ethics and Social Responsibility Stakeholders Internal and external groups affected by a company’s decisions and activities Copyright © 2012 Pearson Education.

Recognizing the Multiple Environments of Business Technological environment Forces resulting from the practical application of science to innovations. Inc. Inc. products. Copyright © 2012 Pearson Education. and processes Disruptive technologies Those that fundamentally change the nature of an industry Can be powerful enough to create or destroy entire companies. Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-20 .

national. state. Copyright © 2015 Pearson Education. services. and even international levels Copyright © 2012 Pearson Education.Recognizing the Multiple Environments of Business Economic environment The conditions and forces that affect the cost and availability of goods. and labor and thereby shape the behavior of buyers and sellers Legal and regulatory environment Laws and regulations at local. Inc. Publishing as Prentice Hall 1-21 . Inc.

Recognizing the Multiple Environments of Business Market environment A company’s target customers. Copyright © 2015 Pearson Education. Inc. the buying influences that shape the behavior of those customers. Inc. Publishing as Prentice Hall 1-22 . and competitors that market similar products to those customers Copyright © 2012 Pearson Education.

Copyright © 2015 Pearson Education. Inc.Major Functional Areas in a Business Enterprise Copyright © 2012 Pearson Education. Publishing as Prentice Hall 1-23 . Inc.

Copyright © 2015 Pearson Education. Publishing as Prentice Hall 1-24 . Inc.Identifying the Major Functional Areas in a Business Enterprise Research and development (R&D) Functional area responsible for conceiving and designing new products Information technology (IT) Systems that promote communication and information usage through the company or that allow companies to offer new services to their customers Copyright © 2012 Pearson Education. Inc.

Publishing as Prentice Hall 1-25 . production. facilities management Copyright © 2012 Pearson Education. Inc. or operations An area where the company makes whatever it makes (for goods-producing businesses) or does whatever it does (for service businesses) Purchasing. Inc. logistics. Copyright © 2015 Pearson Education.Identifying the Major Functional Areas in a Business Enterprise Manufacturing.

Copyright © 2015 Pearson Education. Inc. and setting prices Copyright © 2012 Pearson Education. Inc. Publishing as Prentice Hall 1-26 .Identifying the Major Functional Areas in a Business Enterprise Marketing charged with identifying opportunities in the marketplace working with R&D to develop the products to address those opportunities creating branding and advertising strategies to communicate with potential customers.

Publishing as Prentice Hall 1-27 .Identifying the Major Functional Areas in a Business Enterprise Finance and accounting responsible for virtually every aspect of a firm’s finances ensuring that the company has the funds it needs to operate monitoring and controlling how those funds are spent drafting reports for company management and outside audiences such as investors and government regulators Copyright © 2012 Pearson Education. Inc. Copyright © 2015 Pearson Education. Inc.

Copyright © 2015 Pearson Education.Identifying the Major Functional Areas in a Business Enterprise Human resources (HR) responsible for recruiting. developing. and supporting employees Copyright © 2012 Pearson Education. Publishing as Prentice Hall 1-28 . Inc. Inc. hiring.

Copyright © 2015 Pearson Education.Exploring Careers in Business Copyright © 2012 Pearson Education. Inc. Inc. Publishing as Prentice Hall 1-29 .

Inc. Inc.Achieving Professionalism Professionalism The quality of performing at a high level and conducting oneself with purpose and pride Copyright © 2012 Pearson Education. Publishing as Prentice Hall 1-30 . Copyright © 2015 Pearson Education.

Publishing as Prentice Hall 1-31 . Inc. Inc.Elements of Professionalism Copyright © 2012 Pearson Education. Copyright © 2015 Pearson Education.

Inc. persuasive arguments.Communicating Effectively Listen actively Provide practical information Give facts rather than vague impressions Don’t present opinions as facts Present information in a concise and efficient manner Clarify expectations and responsibilities Offer compelling. Copyright © 2015 Pearson Education. Inc. and recommendations Copyright © 2012 Pearson Education. Publishing as Prentice Hall 1-32 .