CHAPTER 1:

OVERVIEW OF
BUSINESS

MBA. Nguyen Son Tung 3–1

 • Business is the organized effort of
individuals to produce and sell, for a
profit, the goods and services that satisfy
society’s needs (Pride, Hughes, & Kapoor,
2014)
• Business is the continuous execution of
Business one, some or all the stages of business
process, from the production to the sale or
Definition the provision of services on the market for
profit purposes (Vietnam enterprise law
2014).
 Business is the implementation of one or
some actions to provide goods or services to
customers with the profitable goal.

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 business definition (cont)

Manufacturing business

Service business

Commercial business (marketing intermediary)

Business purpose => satisfies customers' needs and profit

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 Why study business?

• For Help in Choosing a Career

• To Be a successful Employee
• To Improve Your Management skills
• To start Your own Business
• To Become a Better-Informed Consumer
and Investor

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 Business organization

Informational
Human resources
resources

BUSINESS

Material resources Financial resources

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 Profit

Profit is what remains after all business expenses have

been deducted from sales revenue

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Business = profit target
= money seeking
 bad or good?

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• Customer
• Stakeholder (is described
as all persons or groups
of people involved,
influenced or influenced Satisfy
by, the organization's whose
policies, decisions, and needs?
activities.)

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 Stakeholder
Chính
phủ
Báo chí Cổ đông

Tổ chức Hội đồng

từ thiện quản trị

Tổ chức
Nhân viên
giáo dục

Doanh nghiệp
Khách
Xã hội
hàng

Các bên Cung cấp

liên doanh tín dụng

Hiệp hội
Cung cấp
nghề
dịch vụ
nghiệp
Nhà phân Cung cấp
phối vật tư
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 Positive:
•Provide valuable products and
services
•Create jobs
The role •Pay taxes
of •Contribute to national growth,
business stability and safety
Negative:
•Contaminate the environment
•Causes health and safety risks
•Causing financial instability 3–
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 Basic economic indicators
• Gross domestic product GDP C + G + I + (Ex – Im)
• National labor productivity
• Unemployment rate
• Consumer price index
• Inflation rate
• Balance of trade
• base interest rate
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 Causes of low productivity in Vietnam

• Low starting point and small economic scale

• Unreasonable economic structure with high labor density in agriculture,
forestry and fisheries. A large proportion of labor is still in low-
productivity manufacturing.
• Low-level production machinery, equipment and process technology
• The quality of labor is low, the untrained labor accounts for a large
proportion, the quality of training, especially vocational training has many
issues.
• The level of organization, production and business management is low,
the efficiency of using resources is not high
• State management still have some shortcomings, such as inconsistent and
overlapping legal documents system...
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 • Are the fluctuations of gross domestic
product (GDP) around its long-term
growth trend: expansion, peak,
Economic contraction, and trough
cycle
• Irregular fluctuations and difficult to
predict
 International business

• Refers to the trade of goods, services, technology, capital and/or

knowledge across national borders and at a global scale.
• International business is based two important concepts:
• Absolute advantage
• Comparative advantage

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"Capital cannot therefore arise from circulation, and it
is equally impossible for it to arise apart from
circulation. It must have its origin both in circulation
and not in circulation." (Marx, Capital, pp. 268-269)

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“Bill Gates wants rich people to pay higher
taxes”
“The rich should pay more than they currently do, and the
includes Melinda and me.”

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 Being Ethical
and
Socially Responsible

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Ethical issues
The study of right
and wrong and of the
morality of the
choices individuals
make (Pride et al.,
2013).

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