copyright © 2002 by harcourt, inc. all rights reserved. chapter one: the framework of contemporary...

Copyright © 2002 by Harcourt, Inc. All rights reserved.

CHAPTER ONE:CHAPTER ONE:The Framework of Contemporary The Framework of Contemporary

BusinessBusiness


WHAT IS BUSINESS?WHAT IS BUSINESS?WHAT IS BUSINESS?WHAT IS BUSINESS?

• Business:Business: profit and non-profit profit and non-profit seeking activities of those engaged seeking activities of those engaged in purchasing or selling goods and in purchasing or selling goods and services to satisfy society’s needs services to satisfy society’s needs and wants.and wants.

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Not-for-Profit OrganizationsNot-for-Profit OrganizationsNot-for-Profit OrganizationsNot-for-Profit Organizations• Not-for-profit organizations:Not-for-profit organizations:

businesslike establishments that have businesslike establishments that have primary objectives other than returning primary objectives other than returning profits to their ownersprofits to their owners• Are these businesses?? Chicago Bears?? Are these businesses?? Chicago Bears??

IVCC?? Red Cross??IVCC?? Red Cross??

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THE PRIVATE ENTERPRISE THE PRIVATE ENTERPRISE SYSTEMSYSTEMTHE PRIVATE ENTERPRISE THE PRIVATE ENTERPRISE SYSTEMSYSTEM• Private enterprise system Private enterprise system

(capitalism):(capitalism): economic economic system that rewards firms system that rewards firms based on how well they match based on how well they match and counter the offerings of and counter the offerings of competitors to serve the needs competitors to serve the needs and demands of customersand demands of customers

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Figure 1.4: Basic Rights within a Private Enterprise System

Basic Rights within the Private Basic Rights within the Private Enterprise SystemEnterprise SystemBasic Rights within the Private Basic Rights within the Private Enterprise SystemEnterprise System


The Entrepreneurship The Entrepreneurship AlternativeAlternativeThe Entrepreneurship The Entrepreneurship AlternativeAlternative

• Entrepreneur:Entrepreneur: risk taker in the risk taker in the private enterprise private enterprise systemsystem

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SIX ERAS IN THE HISTORY OF SIX ERAS IN THE HISTORY OF BUSINESSBUSINESSSIX ERAS IN THE HISTORY OF SIX ERAS IN THE HISTORY OF BUSINESSBUSINESS

Colonial Period

Colonial Period

• Before 1750Before 1750• Rural and agricultural Rural and agricultural productionproduction



Colonial Period

Colonial Period

Industrial Revolution


• After 1750After 1750• Factory system mass-Factory system mass- produced items using produced items using semi-skilled workers semi-skilled workers



Colonial Period

Colonial Period



Industrial Entrepreneurs


• Late 1800s. Late 1800s. • Did much to raise Did much to raise the overall standard the overall standard of living. Eli Whitney, of living. Eli Whitney, Rockefeller, CarnegieRockefeller, Carnegie



Colonial Period

Colonial Period





ProductionEra

ProductionEra

• Early 1900sEarly 1900s• Attention focused Attention focused on production. on production.• Henry Ford: assembly Henry Ford: assembly line.line.



Colonial Period

Colonial Period

MarketingEra

MarketingEra





ProductionEra

ProductionEra

• Post WWII Post WWII • Consumer Orientation:Consumer Orientation: marketing used as a process marketing used as a process to determine and satisfyto determine and satisfy consumer needsconsumer needs



Colonial Period

Colonial Period

MarketingEra

MarketingEra





ProductionEra

ProductionEra

• Driven by advances inDriven by advances in technology technology • Businesses form deep,Businesses form deep, direct links with customers, direct links with customers, employees, suppliers, employees, suppliers, and others and others• Next era??Next era??

RelationshipEra

RelationshipEra


Figure 1.5: Growth of the Internet Population

Insert figure when art is received


To Get 50 Million UsersTo Get 50 Million UsersTo Get 50 Million UsersTo Get 50 Million Users

• Radio = 38 Years

• TV = 17 Years

• Internet = 3 Years


MANAGING THE TECHNOLOGY MANAGING THE TECHNOLOGY REVOLUTIONREVOLUTIONMANAGING THE TECHNOLOGY MANAGING THE TECHNOLOGY REVOLUTIONREVOLUTION

• Intranet:Intranet: closed network system closed network system using Internet standards that allow using Internet standards that allow information sharing among information sharing among employees, divisions, and employees, divisions, and geographically diverse locationsgeographically diverse locations

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RELATIONSHIP MANAGEMENTRELATIONSHIP MANAGEMENTRELATIONSHIP MANAGEMENTRELATIONSHIP MANAGEMENT

• Relationship management:Relationship management: collection of activities that build collection of activities that build and maintain ongoing, mutually and maintain ongoing, mutually beneficial ties with customers and beneficial ties with customers and other parties.other parties.

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Strategic AllianceStrategic AllianceStrategic AllianceStrategic Alliance

• Strategic alliance: partnership formed to create a competitive advantage for the businesses involved

• Bradfield’s and UPS

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COMPETING IN A GLOBAL MARKETCOMPETING IN A GLOBAL MARKETCOMPETING IN A GLOBAL MARKETCOMPETING IN A GLOBAL MARKET

Figure 1.6: Top Ten U.S. Trading Partners


Figure 1.7: Top Ten Brands Worldwide


Productivity: Key to Global Productivity: Key to Global CompetitivenessCompetitivenessProductivity: Key to Global Productivity: Key to Global CompetitivenessCompetitiveness

TotalTotal Output (goods or services produced) Output (goods or services produced)ProductivityProductivity Input (human/natural resources, capital) Input (human/natural resources, capital)

=


Figure 1.8: Nations with the Highest Gross Domestic Product

*Estimate; may overstate GDP by up to 25 percent


DEVELOPING AND SUSTAINING A DEVELOPING AND SUSTAINING A WORLD-CLASS WORKFORCEWORLD-CLASS WORKFORCEDEVELOPING AND SUSTAINING A DEVELOPING AND SUSTAINING A WORLD-CLASS WORKFORCEWORLD-CLASS WORKFORCE

• Preparing for Changes in the Preparing for Changes in the WorkforceWorkforce• Aging of the PopulationAging of the Population

• Baby boomers beginning to retireBaby boomers beginning to retire

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• Shrinking Labor PoolShrinking Labor Pool• Lowest unemployment rate in 25 Lowest unemployment rate in 25

years. Since the publication of years. Since the publication of this book, this is no longer true. this book, this is no longer true. The unemployment rate is about The unemployment rate is about 4.5% right now. 4.5% right now.

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DEVELOPING AND SUSTAINING DEVELOPING AND SUSTAINING A WORLD-CLASS WORKFORCEA WORLD-CLASS WORKFORCEDEVELOPING AND SUSTAINING DEVELOPING AND SUSTAINING A WORLD-CLASS WORKFORCEA WORLD-CLASS WORKFORCE

• The Changing Nature of WorkThe Changing Nature of Work• Economy base has moved from Economy base has moved from

manufacturing to servicesmanufacturing to services• Telecommuters becoming more Telecommuters becoming more

commoncommon• Job flexibility for employeesJob flexibility for employees• Growth of outsourcing Growth of outsourcing

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WANTED: A NEW TYPE OF WANTED: A NEW TYPE OF MANAGERMANAGERWANTED: A NEW TYPE OF WANTED: A NEW TYPE OF MANAGERMANAGER

• Vision:Vision: the ability to the ability to perceive marketplace perceive marketplace needs and what an needs and what an organization must do organization must do to satisfy themto satisfy them

Importanceof Vision

Importanceof Vision



• Critical Thinking:Critical Thinking: ability to analyze and ability to analyze and assess information assess information

• Creativity:Creativity:

Importanceof Vision

Importanceof Vision

Critical Thinkingand Creativity




• Must guide employees Must guide employees and organizations and organizations through the changes through the changes brought about by brought about by technology, technology, marketplace demands, marketplace demands, and global and global competitioncompetition

Importanceof Vision

Importanceof Vision

Ability toSteer Change

Ability toSteer Change




WHY STUDY BUSINESS?WHY STUDY BUSINESS?WHY STUDY BUSINESS?WHY STUDY BUSINESS?

• Businesspeople are catalysts for Businesspeople are catalysts for change, create new opportunitieschange, create new opportunities

• Studying business will help Studying business will help prepare you for the futureprepare you for the future

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copyright © 2002 by harcourt, inc. all rights reserved. chapter one: the framework of contemporary...

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economic system

carnegie slide

customers photodisc

risk taker

businesslike establishments

carnegie rockefeller

assembly henry ford

s early