Business Chapter 1

True or False. All companies have a R&D function.

False, many companies resell products that other firms make.

Careers in Business

Operations management HR specialists Information technology manager Marketing specialist Sales professional Accountant Financial manager

Not-for-Profit (nonprofit) Organizations

Organizations that provide goods and services without having a profit motive

Generating revenue isn't enough; the business model must also indicate how the company is going to realize ________

Profit

Human Resources (HR)

Responsible for recruiting, hiring, developing, and supporting employees

Competitive Advantage

Some aspect of a product or company that makes it more appealing to target customers

Information Technology

Systems that promote the communication and information usage through the company, or that allow companies to offer new services to their customers

Manufacturing, Production, or Operations

-An area where the company makes whatever it makes (for goods-producing businesses) or does whatever it does (for service businesses) -Purchasing, logistics, facilities management

Elements of Professionalism

-Be the best -Be dependable -Be a team player -Be respectful -Be clear -Be ethical

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, and setting prices

Negative Effects of Business

-Generating pollution and creating waste -Creating health and safety risks -Disrupting communities -Causing financial instability

Communicating Effectively

-Listen actively -Provide practical info -Give facts rather than vague impressions -Don't present opinions as facts -Present info in a concise, efficient manner -Clarify expectations and responsibilities -Offer compelling. persuasive arguments and recommendations

Positive Effects of Business

-Offering valuable goods and services -Providing employment -Paying taxes -Contributing to growth, stability, and security

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

Disruptive Technologies

-Those that fundamentally change the nature of an industry -Can be powerful enough to create or destroy entire companies

Market Environment

A company's target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers

Business Model

A concise description of how a business intends to generate revenue

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 Ex: function, marketing, image, price, availability, service

Business

Any profit-seeking organization that provides goods and services designed to satisfy the customers' needs

Barrier to Entry

Any resource or capability a company must have before it can start competing in a given market

Assets

Anything owned by the company that can be of meaningful value, from patents and brand names to real estate and company stock

Economic Environment

The conditions and forces that affect the cost and availability of goods, services, and labor and thereby shape the behavior of buyers and sellers

Etiquette

The expected norms of behavior in any particular situation

Professionalism

The quality of performing at a high level and conducting oneself with purpose and pride

Business Services

Exist to help companies with specific needs in law, banking, real estate, and other areas

Good-producing businesses are often __________-__________ businesses because they require large amounts of money, equipment, land, and other resources to get started and operate =

Capital-intensive

Goods-Producing Businesses

Companies that create value by making "things," most of which are tangible (digital products such as software are a notable exception)

Service Businesses

Companies that create value by performing activities that deliver some benefit to customers

Technological Environment

Forces resulting from the practical application of science to innovations, products, and processes

Research and Development (R&D)

Functional area responsible for conceiving and designing new products

Stakeholders

Internal and external groups affected y a company's decisions and activities

Service businesses tend to be ___________-___________ because they exist to help companies with specific needs in law, banking, real estate, and other areas

Labor-intensive

Legal and Regulatory Environment

Laws and regulations at local, state, national, and even international levels

Operations Management

Management of the people and processes involved in creating goods and services

Multiple Environments of Business

Market Economic Social Legal and regulatory Technological -Every business operates in an overlapping mix of dynamic environments that continuously create both opportunities and constraints.

Revenue

Money a company brings in through the sale of goods and services

Profit

Money left over after all the costs and expenses involved in doing business have been deducted from revenue (sales)

Social Environment

Trends and forces in society at large

A good way to understand what any business does is to view it as a system got satisfying customers by transforming lower-value inputs into higher-value outputs. True or False

True