Developing a Business Mindset

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Developing a Business Mindset. Chapter 1. 1- 1. Chapter 1 Objectives. After studying this chapter, you will be able to: Explain the concept of adding value in a business and identify the major types of businesses. - PowerPoint PPT Presentation


<ul><li><p>1-*1-*Developing a Business MindsetChapter 1</p><p>Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall</p></li><li><p>1-*Chapter 1 ObjectivesAfter studying this chapter, you will be able to:Explain the concept of adding value in a business and identify the major types of businesses.List three steps you can take to help you make the leap from consumer to business professional.Discuss the five major environments in which every business operates.</p><p>1-*</p></li><li><p>1-*Chapter 1 Objectives Cont.Explain the purpose of the six major functional areas in a business enterprise.Summarize seven of the most important business professions.Identify seven components of professionalism.</p><p>1-*</p></li><li><p>1-*What is a business?Any profit-seeking organization that provides goods and services designed to satisfy customers needs</p><p>1-*</p></li><li><p>1-*Adding Value to Satisfy Customers1-*Revenue: Money a company brings in through the sale of goods and services.Business model: A concise description of how a business intends to generate revenue.Profit: Money left over after all the costs involved in doing business have been deducted from revenue.Competitive advantage: Some aspect of a product or company that makes it more appealing to its target customers.</p></li><li><p>1-*Not-for-profit OrganizationsOrganizations that provide goods and services without having a profit motive; also called nonprofit organizationsExamples include museums and charities. </p><p>1-*</p></li><li><p>1-*Types of BusinessesGoods Producing Business1-*Capital IntensiveCompanies that create value by making things, most of which are tangibleLabor IntensiveCompanies that create value by performing activities that deliver some benefit to customers</p><p>Service Business</p><p>Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall</p></li><li><p>Risk and Reward1-*</p><p>Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall</p></li><li><p>Risk and Reward1-*</p><p>Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall</p></li><li><p>1-*Barrier to EntryAny resource or capability a company must have before it can start competing in a given marketSome of the Barrier to EntryThe capital needed to competeGovernment testing and approvalTightly controlled marketsStrict licensing proceduresLimited supplies of raw materials The need for highly skilled employees</p><p>Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall</p></li><li><p>1-*The Business Mindset 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 needsMaking the Leap from Buyer to SellerDevelop a business mindset.Appreciate the role of business in society.Use this course to jumpstart your career.1-*</p></li><li><p>The Business Mindset 1-*</p></li><li><p>1-*Positive and Negative Effects of Business</p></li><li><p>1-*Using This Course to Jump-start Your CareerDevelop a fundamental business vocabulary Introduce to a variety of jobs in business fields (accounting, economics, human resources, management, finance, and marketing) </p></li><li><p>The Multiple Environments of Business1-*</p></li><li><p>1-*Recognizing the Multiple Environments of Business1-*Social environment Trends and forces in society at largeStakeholders Internal and external groups affected by a companys decisions and activities</p></li><li><p>1-*Recognizing the Multiple Environments of BusinessTechnological environmentForces resulting from the practical application of science to innovations, products, and processesDisruptive technologiesThose that fundamentally change the nature of an industryCan be powerful enough to create or destroy entire companies.</p></li><li><p>1-*Recognizing the Multiple Environments of BusinessEconomic environment The conditions and forces that affect the cost and availability of goods, services, and labor and thereby shape the behavior of buyers and sellersLegal and regulatory environmentLaws and regulations at local, state, national, and even international levels</p></li><li><p>1-*Recognizing the Multiple Environments of BusinessMarket environment A companys target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers</p></li><li><p>Major Functional Areas in a Business Enterprise1-*</p></li><li><p>1-*Major Functional Areas in a Business Enterprise1-*Research and development (R&amp;D)Functional area responsible for conceiving and designing new productsInformation technology (IT)Systems that promote communication and information usage through the company or that allow companies to offer new services to their customers</p></li><li><p>Major Functional Areas in a Business Enterprise1-*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</p></li><li><p>Major Functional Areas in a Business Enterprise1-*Marketing Charged with identifying opportunities in the marketplaceWorking with R&amp;D to develop the products to address those opportunitiesCreating branding and advertising strategies to communicate with potential customers, and setting prices</p></li><li><p>Major Functional Areas in a Business EnterpriseFinance and accounting Responsible for virtually every aspect of a firms financesEnsuring that the company has the funds it needs to operateMonitoring and controlling how those funds are spentDrafting reports for company management and outside audiences such as investors and government regulators</p><p>1-*</p></li><li><p>Major Functional Areas in a Business Enterprise1-*Human resources (HR) Responsible for recruiting, hiring, developing, and supporting employees</p><p>Business ServicesExist to help companies with specific needs in law, banking, real estate, and other areas</p></li><li><p>1-*Exploring Careers in Business1-*</p></li><li><p>Exploring Careers in BusinessOperation manager manages the people and processes involved in creating goods and services.</p><p>Human resource specialist plans and directs human resource activities including recruiting, training and development, compensation and benefits, employee and labor relations, and health and safety.</p><p>1-*</p></li><li><p>Exploring Careers in BusinessInformation technology manager designs, implements, and maintains systems that help deliver the right information at the right time to the right people in the organization.Marketing specialist works in branding strategy, electronic commerce, advertising, public relations, creative communication, or interpersonal relations. Sales professional is responsible for building relationships with customers and helping them make purchase decisions.1-*</p></li><li><p>Exploring Careers in BusinessAccountant collects, analyzes, and reports on financial matterssuch as analyzing budgets, assessing the manufacturing costs of new products, and preparing state and federal tax returns. They also perform audits to verify financial reports or find ways to lower costs. </p><p>Financial manager plans for the companys financial needs, invests funds, and raises capital.</p><p>1-*</p></li><li><p>Elements of Professionalism1-*</p></li><li><p>Being a Team PlayerProfessionals know that they are contributors to a larger causeGreat team players know how to make those around them more effectiveBeing a team player also means showing loyalty to your organization and protecting your employers reputation</p><p>1-*</p></li><li><p>Communicating Effectively1-*Listen activelyProvide practical informationGive facts rather than vague impressionsDont present opinions as factsPresent information in a concise and efficient mannerClarify expectations and responsibilitiesOffer compelling, persuasive arguments, and recommendations</p></li><li><p>Maintaining a Confident, Positive OutlookSuccessful people are optimisticSuccessful people buckle-down and get the job done despite obstaclesEnergy, either positive or negative, is contagiousOne negative personality can make an office miserable</p><p>1-*</p></li><li><p>Applying What Youve Learned1-*Explain the concept of adding value in a business and identify the major types of businessesList three steps you can take to help make the leap from consumer to business professionalDiscuss the five major environments in which every business operatesExplain the purpose of the six major functional areas in a business enterpriseSummarize seven of the most important business professionsIdentify seven components of professionalism</p></li><li><p>1-*Input-transformation-output Relationships for Typical SystemsDepartment StoreShoppers, stock of goodsDisplays, sales clerksAttract customers, promote products, fill ordersSales to satisfied customersCollege or UniversityHigh School graduates, booksTeachers, classroomsImpart knowledge &amp; skillsEducated individualsAutomobile FactorySheet steel, engine partsTools, equipment, workersFabrication &amp; assembly of carsHigh-quality carsRestaurantHungry customers, foodChef, waitress, environmentWell-prepared &amp; well-served foodSatisfied customersHospitalPatients, medical suppliesMDs, nurses, equipmentHealth careHealthy individualsTypical Desired OutputTransformation FunctionTransformation ComponentsInputsSystem</p><p>Chapter 1: Developing a Business Mindset</p><p>**************</p></li></ul>