Business Dynamics chapter 1
5 Factors of production
1. land (or natural resources). land and other natural resources are used to make homes, cars, and other products 2. labor (workers). People have always been an important resource in producing goods and services, but many people are now being replaced by technology. 3. Capital (This includes machines, tools, buildings, or whatever else is used in the production of goods. It may not include money; money is used to buy factors of production but is not always considered a factor of production. 4. Entrepreneurship. All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting business to use those resources. 5. Knowledge. Information technology has revolutionized business, making it impossible to quickly determine wants and needs and to respond with desired goods and services.
5 elements in the business environment
1. the economic and legal environment 2. the technological environment 3. the competitive environment 4. the social environment 5. the global business environment
Empowerment
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests
Efficiency
Producing goods and services using the least amount of resources
Capitalism
an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth. (socialism / communism)
database
an electronic storage file for information
stakeholders
are the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address
outsourcing
contracting with other companies to do some or all the functions of a firm, like its production or accounting tasks
insourcing
foreign companies set up design and production facilities in the United States
services
intangible products
entrepreneur
is a person who risks tome and money to start and manage a business
Business
is an activity that seeks to provide goods and services to others while operating at a profit.
Productivity
is the amount of output you generate given the amount input, such as the number of hours you work
risk
is the chance an entrepreneur takes of losing tome and money on a business that may not prove profitable
loss
occurs when a business's expenses are more than its revenues
nonprofit organization
organization whose goals do not include making a personal profit for its owners or organizers
Effectiveness
producing the desired result
standard of living
refers to the amount of goods and services people can buy with the money they have
Quality of life
refers 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
goods
tangible products
Profit
the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation
E-commerce (definition) and two types
the buying and selling of goods online. 1. B2C- business-to-consumer 2.B2B- business-to-business
climate change
the movement of the temperature of the planet up or down over time
Identity theft
the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes
Demography
the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income
greening
the trend toward saving energy and producing products that cause less harm to the environment
Revenue
total amount of money a business takes in during a given period by selling goods and services
Brick-and-mortar
traditional business. Stores that you go into not online business.
globalization
world trade
