Business 1.1

The Entrepreneurship Alternative

The entrepreneurial spirit fuels growth in the U.S. economy The entrepreneurial spirit is the source of new jobs

consumer orientation

business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs. Businesses began to analyze consumer desires before beginning actual production. Consumer choices skyrocketed. Automobiles came in a wide variety of colors and styles, and car buyers could choose among them

brick-and-mortar

businesses do not sell their products on the Internet, but only in physical locations (stores)

Baby Boomers

The 78 million people born during the baby boom, following World War II and lasting until the early 1960s (1946-1964)

Marketing 1950s

The Great Depression of the early 1930s changed the shape of U.S. business yet again. As incomes nosedived, businesses could no longer term-88automatically count on selling everything they produced. Managers began to pay more attention to the markets for their goods and services, and sales and advertising took on new importance. During this period, selling was often synonymous with marketing. Demand for all kinds of consumer goods exploded after World War II. After nearly five years of doing without new automobiles, appliances, and other items, consumers were buying again Consumer orientation, seeking to understand and satisfy needs and preferences of customer groups Soon businesses began to think of marketing as more than just selling; they envisioned a process of determining what consumers wanted and needed and then designing products to satisfy those needs. In short, they developed a consumer orientation. Companies also discovered the need to distinguish their goods and services from those of competitors. Branding The marketing era has had a tremendous effect on the way business is conducted today. Even the smallest business owners recognize the importance of understanding what customers want and the reasons they buy.

mobility

All types of movement from one location to another. being able to move about freely

Tariff wars

Germany and England had ____ ______, where they put increasingly large taxes on imports from the other country

Competition

allows for the public to set rules for competitive activity

intuitive

instinctive, untaught

adept

(adj.) thoroughly skilled; (n.) an expert

Internal Revenue Service (IRS)

(federal agency). The branch of the U.S. Treasury Department in charge of collecting taxes

Advent

(n.) an arrival; a coming into place or view

diversity

(n.) difference, variety; a condition of having many different types of forms blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities, creates far more innovative and creative perspectives Studies have shown that diverse employee teams and workforces with varied perspectives and experience tend to perform tasks more effectively and develop better solutions to business problems. According to the chief diversity officer for microprocessor maker Intel, the company plans to invest $300 million in its "Diversity in Technology Initiative" to achieve full representation of women and underrepresented minorities.29

Primary Agriculture

Corn, cotton, tobacco, soybeans, eggs and peaches

Block Chain

A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly

Outsourcing and the Changing Nature of Work

A shift away from manufacturing, and more to services Service workers require knowledge, technical, and communication skills Outsourcing involves the use of outside vendors—contracting work out to another party—for the production of goods or fulfillment of services and functions previously performed in house. Manufacturing used to account for most of the annual output of the United States, but the balance has now shifted to services such as hospitality, retail, healthcare, human services, information technology, financial services, and education Oftentimes, competitive pressures drive a company to reduce costs by outsourcing in order to focus its resources on other components of its business. In addition to cultural and language differences, outsourcing also creates its own challenges, such as fully understanding the client's business and balancing costs while increasing value to the client.

Tariff

A tax on imported goods

Analytics

A term describing the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

Communism

A theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. Some economic systems, such as communism, feature strict controls on business ownership, profits, and resources to accomplish government goals.

The Green Advantage

A way to build relationships is to incorporate issues of value into your business that are of concern to your customers Companies can create environmentally friendly products and processes Companies are well aware of saving energy, cutting emissions, reducing pollution and waste Companies in every industry are researching ways to save energy, cut emissions and pollution, reduce waste, and, not incidentally, save money and increase profits as well. Energy remains a significant cost for most companies, and carbon-based fuels such as coal are responsible for most of the additional carbon dioxide in the atmosphere. Many companies have begun to address this issue, none perhaps with more flair than Greensulate, a small business in New York City that insulates rooftops with beautiful meadows of lavender, native grasses, and a hardy plant called sedum. The company's efforts to date have eliminated more than 3,000 pounds of carbon from the atmosphere.24 Owned by electric vehicle maker Tesla, SolarCity, a California installer of rooftop solar cells, has become a leader in clean energy services for businesses, schools, and not-for-profit organizations.25 Each new era in U.S. business history has forced managers to reexamine the tools and techniques they formerly used to compete. Tomorrow's managers will need creativity and vision to stay on top of rapidly changing technology and to manage complex relationships in the global business world of the fast-paced 21st century. As green operations become more cost-effective, and consumers and shareholders demand more transparency from corporations, more companies continue to realize its importance and value. To compete in global markets, businesses must be aware of the ongoing transition to a knowledge economy, which involves increased reliance on employees' intellectual capabilities over physical inputs or natural resources. Knowledge-based activities within an organization help accelerate the pace of technical and scientific advances

Changes in the Workforce

Aging of the Population and Shrinking Labor Pool Increasingly Diverse Workforce Changing Nature of Work The need for flexibility and mobility Innovation through collaboration Artificial intelligence to innovate and become more efficient

non-profit organization

Although they focus on goals other than generating profits, managers of not-for-profit organizations face many of the same challenges as executives of profit-seeking businesses. Without funding, they cannot conduct research, hire top talent, market, and promote their cause, or provide services. St. Jude Children's Research Hospital's pediatric treatment and research facility in Memphis treats nearly 7,500 children a year for catastrophic diseases, mainly cancer, immune system problems, and infectious and genetic disorders. Patients come from all 50 states and all over the world and are accepted without regard to the family's ability to pay. To provide top-quality care and to support its research in gene therapy, chemotherapy, bone marrow transplantation, and the psychological effects of illness, among many other critical areas, St. Jude relies on contributions, with some assistance from federal grants.

Capitalism

An economic system based on private property and free enterprise. Adam Smith, often identified as the father of capitalism, first described the concept in his book, The Wealth of Nations, published in 1776. Smith believed that an economy is best regulated by the "invisible hand" of competition, a natural force that guides free market capitalism. Smith thought that competition among companies would lead to consumers' receiving the best possible products and prices because less efficient producers would gradually be driven from the marketplace.

Importance of Critical Thinking

Analyze and assess information, knowledge, and arguments for problem solvingImportance of Creativity Developing novel solutions to problems - or better way to do business Critical thinking and creativity are essential characteristics of today's manager. Today's businesspeople need to look at a wide variety of situations, draw connections among disparate information, and develop future-oriented solutions. This need applies not only to top executives but to mid-level managers and entry-level workers as well. Creativity and critical thinking must go beyond generating new ideas, however. They must lead to action. In addition to creating an environment in which employees can nurture ideas, managers must give them opportunities to take risks in order to innovate and develop new solutions.

Snapchat Evan Spiegel and Robert Murphy

Approached by a friend who wasn't sure about whether to send a certain photo, Spiegel and Murphy figured out a way to magically send pictures that soon disappear after being viewed by the recipient.

What activity lies at the center of every business endeavor?

At the heart of every business endeavor is an exchange between a buyer and a seller.

Relationship Era (begin in 1990's)

Benefits derived from deep, ongoing links with individual customers, employees, suppliers, and other businesses A company that retains customers over the long haul can potentially reduce costs associated with acquiring new customers. Because customer spending tends to accelerate over time, revenues also grow. Companies with long-term customers often can avoid costly reliance on price discounts to attract new business, and they find that many new buyers come from loyal customer referrals. Because it is much less expensive to serve existing customers than to find new ones, businesses that develop long-term customer relationships can reduce their overall costs. Long-term relationships with customers enable businesses to improve their understanding of what customers want and prefer from the company. As a result, businesses enhance their chances of sustaining real advantages through competitive differentiation.

Google (Sergey Brin and Larry Page)

Brin and Page began brainstorming while in school about Creating the world's largest search engine. They suspended their phD studies, and both run Alphabet today (see the chapter opening story).

Innovation through Collaboration

Businesses use teamwork in a creative environment where members solve problems or seize opportunities. Technology continues to break down the physical barriers that once existed in a workplace setting where workers arrived to the office primarily for face-to-face collaboration. To achieve high levels of productivity, employees have become increasingly dependent on technology—including messaging apps, video conferencing for virtual collaboration, and digital devices like smart phones and laptops. Using technology, global teams are able to collaborate from all corners of the world, and physical office presence seems far less important. This has contributed to a new way of working called crowdsourcing,

not-for-profit organizations. nonprofits(Purdue University's athletic department, the U.S. Postal Service, the American Heart Association)

Businesslike establishments with objectives other than returning profits to their owners Public service goals are placed above profits Operate in both the public and private sector The A S P C A, headquartered in New York City, was the first human society in North America and 150 years later it is one of the largest privately funded 501 (c) (3) not-for-profit corporations in the world organizations whose goals do not include pursuing a profit. these organizations play important roles in society by placing humanitarian and environmental needs, for example, above profits, although it is important to understand that these organizations need to raise money so that they can operate and achieve their social goals. Not-for-profit organizations, also called nonprofits, operate in both the private and public sectors Government agencies, political parties, and labor unions, all of which are part of the public sector Not-for-profit organizations are a substantial part of the U.S. economy, contributing more than $900 billion in a recent year. Currently, more than 1.5 million nonprofit organizations are registered with the Internal Revenue Service in the United States, in categories ranging from arts and culture to science and technology.2 These organizations use labor and capital in much the same way that for-profit companies do, and employ over 14 million people—more people than the federal government and all 50 state governments combined.3 In addition, millions of volunteers work for them in unpaid positions. In addition, millions of volunteers work for them in unpaid positions. Not-for-profits secure funding from private sources, including individual (tax deductible) donations, and from government sources. They are commonly exempt from federal, state, and local taxes.

Ability to Lead Change

Changes resulting from technology, marketplace demands and global competition Managers must be skilled at recognizing employee strengths and motivating people to move toward common goals as members of a team. Factors that require organizational change can come from both external and internal sources; successful managers must be aware of both External forces might include feedback from customers, developments in the global marketplace, economic trends, and new technologies. Internal factors might arise from new company goals, emerging employee needs, labor union demands, or production issues.

Gen Z

Digital Natives 2001-2014

Production Era Through 1920

Emphasis on producing more goods faster, leading to production innovations such as assembly lines A period beginning with the Industrial Revolution and concluding in the 1920s in which production-orientation thinking dominated the way in which firms competed. Work became increasingly specialized, and huge, labor-intensive factories dominated U.S. business. During the production era, business focused attention on internal processes rather than external influences. Marketing was almost an afterthought, designed solely to distribute items generated by production activities. Little attention was paid to consumer wants or needs. Instead, businesses tended to make decisions about what the market would get. If you wanted to buy a Ford Model T automobile, your color choice was black—the only color produced by the company.

Failed Emissions Test: Volkswagen's Costs Moun

Established in 1937, German giant Volkswagen is the second-largest automobile manufacturer in the world behind Toyota, with three cars in the top 10 list of best-selling cars of all time—the Golf, the Beetle, and the Passat. Despite its success as an iconic brand with car models that span multiple revisions and generations, software that turns off emissions controls on 11 million of its vehicles globally has caused the company irreparable damage. Volkswagen knowingly placed in its cars a device with software that turns emissions control systems on and off. This type of software is commonly referred to as "defeat software," which turns emissions controls off under normal driving conditions and turns them on when the car is undergoing an emissions test. The U.S. Environmental Protection Agency (EPA) first discovered the device (called a defeat device) in diesel engines. Its software detects when engines are being tested—and when Volkswagen's four-cylinder cars weren't hooked up to emissions testing equipment, they did, in fact, emit up to 40 times more pollution than allowed under U.S. standards. When the car recognizes that it is being tested, it communicates with its computer to adjust how the car is running, thereby reducing emissions to legal levels. The result: inaccurate emissions tests on diesel vehicles fitted with the device.

Flexibility and Mobility

Exploration and implementation of various work arrangements Millennials are more open to freelancing or working on contract over traditional full-time employment. Millennials care less about money and the work-comes-first lifestyle, and more about training, flexibility, diversity and inclusion, and getting along with co-workers. Millennials prefer to use technology to collaborate online and share knowledge with a sense of mission.

Facebook. )Mark Zuckerberg, Dustin Moscovitz, Eduardo Saverin, Andrew McCollum, and Chris Hughes)

Facebook was created by a group of Harvard students in search of a way to interact with other students. Zuckerberg dropped out of school and continues to run the company today.

To subsidize donations and grants, many not-for-profits, such as art museums and national parks, sell merchandise.

For example, the Metropolitan Museum of Art in New York sells jewelry, books, calendars, note cards, and posters through both an online store and an on-site bricks-and-mortar gift shop. Founded in 1912, The Girl Scouts of the USA are known for their mouth-watering cookies. The organization has created a cookie empire valued at close to $800 million through sales by local scout troops.6

Dorm Room Entrepreneurs (Dropbox) Founders: Arash Ferdowski and Drew Houston

Frustrated by the inability to receive and send large files over e-mail, Ferdowski and Houston created an online file storage solution, now the leader in file sharing with millions of users worldwide.

What Makes a Company Admired?

Innovation People management Use of corporate assets Social Responsibility Quality of management Quality of products and services

Insomnia Cookies Seth Berkowitz

Insomnia Cookies, now in 70 locations, specializes in feeding the insatiable hunger of college students, companies, and anyoneelse with warm, delicious cookies delivered right to your door.

Current Business Workforce Trends

Keeping pace with accelerated change in today's business world is crucial. To keep pace with change, a skilled and knowledgeable workforce is an essential resource. High-quality production workforces are needed to compete in global markets. Integration of machines and artificial intelligence (AI) continues to expand.

Colonial era prior to 1776

Main characteristics: Primarily Agricultural Colonial towns were small compared to European cities, and they functioned as marketplaces for farmers and craftspeople. The economic focus of the nation centered on rural areas, because prosperity depended on the output of farms, orchards, and the like. The success or failure of crops influenced every aspect of the economy. Colonists depended on England for manufactured items as well as financial backing for their infant industries. Even after the Revolutionary War (1776-1783), the United States maintained close economic ties with England. British investors continued to provide much of the financing for developing the U.S. business system, and this financial influence continued well into the 19th century.

Industrial revolution

Mass production by semiskilled workers, aided by machines 1760-1850 It moved business operations from an emphasis on independent, skilled workers who specialized in building products one by one to a factory system that mass-produced items by bringing together large numbers of semiskilled workers Influenced by these events in England, business in the United States began a time of rapid industrialization. Agriculture became mechanized, and factories sprang up in cities. During the mid-1800s, the pace of the revolution was increased as newly built railroad systems provided fast, economical transportation. In California, for example, the combination of railroad construction and the gold rush fueled a tremendous demand for construction. Building on the opportunities created by the Industrial Revolution, entrepreneurship increased in the United States.

ModCloth Susan Gregg koger and Eric koger

Modcloth offers styles from hundreds of independent designers in a full range of sizes. They also design and see an exclusive line of their own apparel

Social era (since 2000's)

New ways to businesses and consumers to communicate and share information through the internet and social media The social era, based on the premise that organizations create value through connections with groups or networks of people with similar goals and interests, offers businesses immense opportunities, particularly through the use of technology and relationship management As consumers continue to log fewer hours on computers and more time on mobile devices, companies have implemented mobile strategies using real-time data and location-based technology. Businesses use mobile social media applications to engage in marketing research, communications, sales promotions, loyalty programs, and other processes. In the social era, businesses tailor specific promotions to specific users in specific locations at specific times to build customer loyalty and long-term relationships. For example, customers who are members of GameStop's PowerUp loyalty program can opt in to receive mobile offers and messages when they are near one of the video game retailer's stores.21

Section 501 (c)(4) organizations

Nonprofit group that lobbies, campaigns and received non-tax deductible donations The ASPCA,(The American Society for the Prevention of Cruelty to Animals headquartered in New York City, was the first humane society in North America and 150 years later it is one of the largest privately funded 501(c)(3) not-for-profit corporations in the world. t is a nonprofit national animal welfare organization with the belief that animals are entitled to kind and respectful treatment at the hands of humans and must be protected under the law

What is the primary objective of a not-for-profit organization

Not-for-profit organizations place public service above profits, although they need to raise money in order to operate and achieve their social goals. focused more. on the mission

Today's Manager: Importance of Vision

Perceiving marketing place needs What an organization must do to satisfy needs Marc Benioff , C E O of Salesforce.com, is considered a visionary leader because of his approach to technology and cloud computing. Ongoing change is causing a radical transformation in today's business environment—where new industries, business models, and technologies are continually developing. Different from the past, the use of data, networks, and artificial intelligence for decision making and communication will impact the way today's managers lead in an environment of hyper-change. Companies now look for highly motivated visionaries and transformational managers and leaders. For today's manager, the ability to communicate and strategically apply critical thinking skills and creativity to both challenges and opportunities will continue to be a top priority

Profits

Profits represent rewards earned by businesspeople: who take the risks involved in blending people, technology, and information to create and market want-satisfying goods and services. Accountants think of profits as the difference between a firm's revenues and the expenses it incurs in generating those revenues. Profits serve as incentives to start and expand companies. A business, such as this cell phone store, survives through the exchange between a buyer and a seller difference between a business's revenues and its expenses represent rewards earned by businesspeople who take the risks involved in blending people, technology, and information to create and market want-satisfying goods and services. The quest for profits is a central focus of business because without profits, a company could not survive. But businesspeople also recognize their social and ethical responsibilities. To succeed in the long run, companies must deal responsibly with employees, customers, suppliers, investors, creditors, competitors, government, and the general public. More generally, however, profits serve as incentives for people to start companies, grow them, and provide consistently high-quality competitive goods and services.

Right to Profits

Right to profits after taxes, earned through business activities

Fourth Industrial Revolution

Seen in the last 5 decades, first use of big data, predictive analytics and artificial intelligence Today, digital reality, robotics, cognitive, and block chain are redefining information technology, business, and society at large—and revolutionary growth is being created across businesses and industries

Knowledge

Skills, experience, and expertise coupled with information and intelligence that creates a person's intellectual resources is needed to stay on top of new technologies, advances, and innovation.

Aging of the Population and Shrinking Labor Pool

There are more than 8.5 million U.S. workers 65 or older in today's workforce, a 60% increase compared to a decade ago. The labor pool could fall short as some Baby Boomers retire Management challenges with a multi-generational workforce with up to five different generations Work-life styles, work expectations, and disparate levels of technological expertise Advanced technological skills will be required Continued rapid technological change has intensified the hiring challenge by requiring knowledge workers and workers with even more advanced, often technical, skills. Over 33% of Americans 25 and older have completed a bachelor's degree, an increase from 28% a decade ago. In addition, companies are increasingly seeking—and finding—talent at the extreme ends of the working-age spectrum. Teenagers are entering the workforce sooner, and some seniors are staying longer—or seeking new careers after retiring from their prior careers. Many older workers work part-time or flexible hours. Meanwhile, for those older employees who do retire, employers must administer a variety of retirement planning and disability programs and insurance benefits

strategic alliance

To take full advantage of available opportunities, businesses form partnerships with other organizations One form of partnership is called a strategic alliance A strategic alliance creates a competitive advantage for the businesses involved. The voice of Amazon's voice-enabled personal assistant, Alexa, will be heard in Ford, Toyota, Hyundai, and Volkswagen automobiles.

Inogen.(at home stationary oxygen concentrator) Alison perry Bauerlin

While in college, Bauerlin Founded Inogen, a lightweight and travel-approved portable oxygen device designed to free patients in need of oxygen from heavy tanks.

Increasingly Diverse Workforce

Workers in developing regions have moved to more prosperous countries like the United States to gain access to opportunities. Diversity and inclusion must be included in workplace policies to retain employees Workplace success is enhanced through different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities Rapid technological change has intensified the hiring challenge by requiring workers with technical skills and advanced degrees. To retain employees, managers must focus on diversity and inclusion in workplace policies—particularly in industries such as technology. Today's U.S. workforce is comprised of more immigrants than ever before, along with highly educated women, military veterans, and people with varying physical and mental abilities. Minority groups will make up approximately 56% of the total population by the year 2060.

The Private Enterprise System

a for-profit system established, owned, and operated by private citizens or individuals. Decisions can be made freely and independent of the government or its agencies, and companies are rewarded for their ability to identify and serve the demands and needs of consumers. A U.S. economic system that rewards firms for their ability to identify and serve the needs and demands of customers

incentive

a positive or negative environmental stimulus that motivates behavior, induces a person to act

competition

a situation in which people or organizations try to be more successful than other people or organizations a natural force that guides free market capitalism. Adam Smith thought that competition among companies would lead to consumers' receiving the best possible products and prices because less efficient producers would gradually be driven from the marketplace.

invisible hand concept

also refers to the fact that individuals' efforts to pursue their own interest may benefit society as well.

capitalism (free enterprise, private enterprise)

an economic system in which individuals own and operate the majority of businesses that provide goods and services Adam Smith is the father of capitalism, who believed in the "invisible hand" to regulate competition To compete, each firm must provide a competitive differentiation to set itself apart For capitalism to operate effectively, people living in a private enterprise system must have certain rights.

Entrepreneurs

are risk takers who recognize marketplace opportunities and use their capital, time, and talents to pursue profits. The willingness of individuals to start new ventures drives economic growth and keeps pressure on existing companies to satisfy customers Once in a while, the risk leads to rewards that are significant and profitable. However, oftentimes, it takes an entrepreneur repeated attempts, failures, and numerous ideas before achieving success. I The entrepreneurial spirit is a mind-set embodied by individuals who are passionate and fascinated with how things can be improved. Entrepreneurs often find new ways to use natural resources, technology, and other factors of production. Often, they do this because they have to—they may not have enough money to build an expensive prototype or launch a wide-scale promotional campaign. entrepreneurs have played a vital role in the history of U.S. business. As forward-thinking innovators, they have created global companies in new industries, developed successful business methods and processes, and brought about economic wealth, jobs, and opportunities. Sometimes an entrepreneur may innovate by simply tweaking an existing idea. For backcountry campers, hikers, and other outdoor enthusiasts, freeze-dried "just-add-water-and-serve" meals-in-a-pouch are traditionally lightweight with an extensive shelf life

brand

can be a name, term, sign, symbol, design, or some combination that identifies the products of one company and differentiates them from competitors' offerings.

Freedom of Choice

citizens choose their own employment, purchases, and investments

humanitarian

concerned with human welfare; a person devoted to helping humanity

e-commerce

electronic business or exchange conducted over the internet, buying and selling of goods on the internet. web based economic activities Seattle, WA-based Nordstrom, the family-owned high-end fashion retailer, continues to be on a roll as recent annual sales reached a record $14.5 billion. That figure includes sales of $3 billion—growing more than 30% a year over the last decade—for the company's e-commerce site, Nordstrom.com. With e-commerce representing 25% of Nordstrom's business, technology spending has accelerated with plans to continue innovating its tech platform, designed to deliver both digital and mobile enhancements. For example, Nordstrom has implemented "unified commerce," whereby, in addition to curbside delivery in all U.S. full-line stores, a customer can buy online, pick up in store (BOPIS).

Crowdsourcing (innovation through collaboration)

enlisting the collective talent of a number of people to get work done. allows companies to find workers for a specific task or project in a more efficient and cost-effective way—using online marketplaces to hire global talent beyond their own workforce. using consumers to develop and market products

parity

equality, as in amount, status, or value

Predictive Analytics

extracts information from data and uses it to predict future trends and identify behavioral patterns

information

facts or details that tell you something about a situation, person, event etc Information, frequently improved by technological innovations, is another critical factor because both managers and operating employees require accurate, timely information for effective performance of their assigned tasks. Bill Gates is quoted as saying, "Information technology and business are becoming inextricably interwoven. I don't think anyone can talk meaningfully about one without talking about the other."

semiskilled

having limited skills or training, partly skilled

cognitive

how we encode, process, store, and retrieve information

Subsadize

if a government or organization subsidizes a company, activity etc, it pays part of its costs To subsidize donations and grants, many not-for-profits, such as art museums and national parks, sell merchandise. For example, the Metropolitan Museum of Art in New York sells jewelry, books, calendars, note cards, and posters through both an online store and an on-site bricks-and-mortar gift shop.

Capital Fp: Interest

includes technology tools (computer and software), information, and physical facilities. To remain competitive, a company needs to continually acquire, maintain, and upgrade its capital, which requires funding A company's funds may come from owner-investments, profits reinvested back into the business, or loans extended by others. Money then goes to work building factories; purchasing raw materials and component parts; and hiring, training, and compensating employees. People and companies that supply capital receive factor payments in the form of interest.

Technology

is a broad term that refers to such machinery and equipment as computers and software, telecommunications, and inventions designed to improve production.

Critical thinking

is the ability to analyze and assess information to pinpoint problems or opportunities. The critical-thinking process includes activities such as determining the authenticity, accuracy, and worth of data, information, knowledge, and arguments. It involves looking beneath the surface for deeper meaning and connections that can help identify critical issues and solutions.

Creativity

is the capacity to develop novel solutions to perceived organizational problems. Although most people think of it in relation to writers, artists, musicians, and inventors, that is a very limited definition. In business, creativity refers to the ability to see better and different ways of doing business. A computer engineer who solves a glitch in a software program is executing a creative act.

Labor fp: Wages

is the physical labor and intellectual inputs contributed by workers. This category encompasses both the physical labor and the intellectual inputs contributed by workers. Companies rely on their employees as a valued source of ideas and innovation, as well as physical effort

Entrepreneurship Fp: Profit

is the willingness to take risks to create and operate a business. An entrepreneur is someone with an idea who sees a potentially profitable opportunity and then devises a plan to achieve success in the marketplace Entrepreneurship is also important to existing companies in a private enterprise system. More and more, large companies are recognizing the value of entrepreneurial thinking among their employees, hoping to benefit from enhanced flexibility, improved innovation, and new market opportunities Whitney Wolfe hopes to empower women by changing the antiquated rules of online dating. Her location-based social and dating app, Bumble, referred to by some as "The Feminist Tinder," requires that women make the first move to initiate a conversation.12

factors of production (Land) factor payments: Rent

is used in the production of a good, includes all production inputs or natural resources such as oil, gas, minerals, and timber. The demand for timber has increased as a result of an improved economy and increased homebuilding, along with hurricane, tornado, fire, flood, and other recent damages in the United States.

tangible goods

items we value or desire that we can reach out and touch, merchandise you can put your hands on. automobiles, breakfast cereals, and smart phones

Private-sector not-for-profits

museums, libraries, trade associations, and charitable and religious organizations.

Nearshoring

outsourcing production or services near a company's headquarters

Basic Rights in the Private Enterprise System

private property, competition, profits, freedom of choice

economic

relating to trade, industry, and the management of money Although the the US did not attempt to settle or colonize South America like other imperialistic nations had done, they did exert ________ influence that in an imperialistic way.

Offshoring

relocating business processes, both production (manufacturing) and services (accounting) to lower cost locations overseas In recent years, India ranked as the top offshoring destination worldwide, followed by China and Malaysia.30 Some U.S. companies are now structured so that entire divisions or functions are developed and staffed overseas

Millenials (Generation Y)

the 83 million children of the baby boomers born between 1977 and 2000 Millennials, the largest demographic group in today's workforce, tend to care less about money and the work-comes-first lifestyle, and more about training, flexibility, diversity and inclusion, and getting along with co-workers. Millennials, more open to freelancing or working on contract over traditional full-time employment, expect flexible work hours along with mobility to work at home, a café, or the office.

vision

the ability to perceive marketplace needs and what an organization must do to satisfy them

Inclusion

the action or state of including or of being included within a group or structure.

Business

the activity of making money by producing or buying and selling goods, or providing services consists of all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. A broad, all-inclusive term applied to various enterprises All profit-seeking activities and enterprises Provider of goods and services necessary to an economic system Drives the economic pulse of a nation Provides the means through which a citizens' standard of living improves An exchange between a buyer and a seller Business drives the economic pulse of a nation. It provides the means through which its citizens' standard of living improves. At the heart of every business endeavor is an exchange between a buyer and a seller. to make a profit, every business requires not only enough customers to whom its products and services can be sold on a consistent basis, but also some form of investment. Businesses can be privately owned, not-for-profit, or state-owned.

commerce

the buying and selling of goods and services

relationship management

the collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.

Ledger

the group of accounts or records maintained by a company

Branding

the process of creating an identity in consumers' minds for a good, service, or company—is an important marketing tool Branding can go a long way toward creating value for a firm by providing recognition and a positive association between a company and its products.

Right to Private Property

the right of a person or community to own, use, buy, sell and bequeath most forms of property, including land, buildings, machinery, and equipment

competitive differentiation

the unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers Under Armour, with the tagline of "I Will," has resonated with football players who have experienced sweat soaked t-shirts that were heavy and uncomfortable. The company has differentiated itself with its signature moisture-wicking t-shirt that stays perpetually dry and fresh. Its tagline speaks to its origin, as the company began in the back of the founder's truck Companies that fail to adjust to shifts in consumer preferences or ignore the actions of competitors leave themselves open to failure

information technology

the use of technology to move and process information

augmented reality

the viewing of the physical world with computer-generated layers of information added to it For example, Nike's mobile app called SNKRS uses augmented reality to give "sneakerheads" (people who collect and trade sneakers as a hobby) a one-stop shop for everything Nike, in addition to a heads-up about the release of new models and the ability to purchase new and limited-edition sneakers through the app.17 As

frenetic

wildly excited or active, frenzied