INTRODUCTION TO BUSINESS ADMINISTRATION

CHAPTER 1
NGUYEN VO HIEN CHAU
INTERNATIONAL UNIVERSITY
COURSE STRUCTURE
 • Chapter 1: Taking Risks and Making Profits within the Dynamic
Part 1: Business Trend Business Environment
• Chapter 2: Understanding How Economics Affects Business

Part 2: Business • Chapter 5: Form of Business ownership

Ownership
• Chapter 7: Management and Leadership
Part 3: Business • Chapter 8: Adapting Organizations To Today’s Markets
Management • Chapter 9: Production and Operations Management

Part 4:Human • Chapter 10: Motivating employees

resource management • Chapter 11: HRM: Finding and Keeping the Best Employees

• Chapter 13: Marketing: Building Customer Relationships

• Chapter 14: Developing and Pricing Products and Services
Part 5: Marketing • Chapter 15: Distributing Products Quickly and Efficiently
• Chapter 16: Using Effective Promotional Techniques
 Explain how rapidly the business world is changing
and the importance of life-long learning.
Develop a high level of familiarity with one or more
of the functional areas of business.
STUDENT
LEARNING Explain how global issues influence business entities
OUTCOMES
Explain how global issues impact customers

Organizing and analyzing information in a logical

way: Theories and Concepts.
https://www.bbc.com/news/business-51706225
CHAPTER 1: MANAGING WITHIN THE DYNAMIC
BUSINESS ENVIRONMENT: TAKING RISKS AND
MAKING PROFITS
LEARNING
OBJECTIVES
 CHAPTER CONTENTS

1. Business And Entrepreneurship: Revenues, Profits And Losses

2. Entrepreneurship Versus Working For Others
3. The Business Environment
 The Economic And Legal Environment
 The Technological Environment
 The Competitive Environment
 The Social Environment
 The Global Environment
4. The Evolution Of Vietnamese Business
 OBJECTIVE 1: BUSINESS AND ENTREPRENEURSHIP: REVENUES,
PROFITS AND LOSSES
IMPORTANT TERMS
 Goods: Tangible products such as computers, food, clothing, cars, and
appliances.
 Services: intangible products (i.e., products that can’t be held in your
hand) such as education, health care,
insurance, recreation, and travel and tourism.
 Business: any activity that seeks to provide goods and services to others
while operating at a profit.
 Entrepreneur: a person who risks time and money to start and manage a
business.
 Revenue: the total amount of money a business takes in during a given
period by selling goods and services
 Profit: the amount of money a business earns above and beyond what it
spends for salaries and other expenses needed to run the operation.
 Loss: when a business’s expenses are more than its revenues
 Risk: the chance an entrepreneur takes of losing time and money on a
business that may not prove profitable
NET INCOME = REVENUE --- EXPENSE
• IF NET INCOME>0: PROFIT

• IF NET INCOME<0: LOSS

STANDARD OF LIVING

the amount of goods and services people can buy with the money
they have

QUALITY OF LIFE
to the general well-being of a society in terms of its political
freedom, natural environment, education, health care, safety,
amount of leisure, and rewards that add to the satisfaction and joy
that other goods and services provide.
 Outsourcing: contracting with other companies (often in other
countries) to do some or all the functions of a firm, like its
production or accounting tasks

 nonprofit organization: an organization whose goals do not include

making a personal profit for its owners or organizers.
STAKEHOLDERS
all the people who
stand to gain or lose by
the policies and
activities of a business
and whose concerns the
business needs to
address.
OBJECTIVE 2: ENTREPRENEURSHIP VERSUS
WORKING FOR OTHERS

 What are some of the advantages of working for others?

 What benefits do you lose by being an entrepreneur, and what do you
gain?
 What are the five factors of production? Which ones seem to be the most
important for creating wealth?
 OBJECTIVE 3

Business environment: the

surrounding factors that either
help or hinder the
development of businesses
OBJECTIVE 4: DESCRIBE THE EFFECTS OF TECHNOLOGY ON
BUSINESSES

 Technology: everything from phones and copiers to computers, medical

imaging devices, personal digital assistants, and the various software
programs that make business processes more effective, efficient,
and productive.
 Effectiveness: producing the desired result.
 Efficiency: producing goods and services using the least amount of
resources.
 Productivity: the amount of output you generate given the amount of
input, such as the number of hours you work.
E-commerce: the buying and selling of goods over
the Internet. There are two major types of e-commerce
transactions:
Business to-consumer (B2C)
business-to-business (B2B)
Database: An electronic storage file for information.
THE SOCIAL CHANGES AFFECTING BUSINESSES

Demography
The statistical study of the human population with regard to its
size, density, and other characteristics such as age, race, gender,
and income

https://www.worldometers.info/demographics/vietnam-demographics/
HOW WORLD TRADE, OR GLOBALIZATION
AFFECT BUSINESS?
 The evolution of VN Business

Agriculture, forestry
and fishing
Construction

VN GDP 2019 (General

statistics office of VN)

Service

http://nfsc.gov.vn/vi/buc-tranh-kinh-te-viet-nam-6-thang-nam-2019-qua-cac-con-so/