Chapter 1 Characteristics of Business 1 Chapter 1 Characteristics of Business ©2008...

1Chapter 1

Characteristics of Business

Chapter 1 Characteristics of Business

©2008 Thomson/South-Western

2Chapter 1


Lesson 1.1 The Nature of Business

Goals Explain the nature of business activities. Describe the general types of businesses.

3Chapter 1


Business and Profit

Business — an organization that produces or distributes a good or service for profit

Profit — difference between earned income and costs

4Chapter 1


THE NATURE OF BUSINESS

Business activities– Production– Marketing– Finance

Types of businesses– Industrial businesses – business 2 business– Commercial businesses – selling to us

Service businesses – not really a product sold

5Chapter 1


DAILY BUSINESS NEWS

MONDAYAnglim RyanAnnun DavidBeyah TorianBreza MarissaCerula Kevin

TUESDAYCifelli JohnCoonan Mary KateDansbury DanielDinneny PatrickDintrone Michael

WEDNESDAYDunn KatlinKohut CodyKuczinski MichaelMahotiere PhilippeMastoris AlexanderNugent Marissa

6Chapter 1


DAILY BUSINESS NEWS

THURSDAYNzimande ZoeO'Keeffe J.P.Perna AnthonyPinarligil TylerRouze Jonathan Santopietro Angela

FRIDAYSeaver RobertSteinmetz AndrewTodaro BrandonVitacolonna VincentYoung Francis

7Chapter 1


Lesson 1.2 Changes Affecting Business

Goals Describe how innovations affect businesses. Identify the impact global competition has

had on U.S. businesses. Discuss ways in which businesses can

improve their business practices.

8Chapter 1


Changes Affecting Businesses

Innovation Impact of global competition Focusing on the right things

– Achieving effectiveness — making the right decisions about products or services to offer and the best ways to produce and deliver them

– Achieving efficiency — producing products and services quickly, at low cost, without wasting time and materials

9Chapter 1


Effectiveness and Efficiency

10Chapter 1


EFFICIENCY

Efficiency is achieved in three ways: Specialization of effort “experts doing the

job” Better technology and innovation robots and

computers, better machinery Reorganization of work activities teams,

downsizing, empowerment

11Chapter 1


GLOBAL COMPETITION

For hundreds of years, America lead the way in producing new goods and services.

Now more countries are becoming industrialized but Chinese factory wages 64 cents an hour. U.S. factory wages in 2002 was $21.11 30 foreign countries studied was $14.22 Mexico's factory wages $2.48 Because China's living costs are low, that 64 cents

buys as much as $2.96 in the U.S.

12Chapter 1


Class Assignment Car Production Plant

Break up into 3 groups Describe ways an automobile manufacturer can use each method to increase efficiency. Page 10

Group 1: Use Specialization Group 2: Use Technology and innovation Group 3 : Use Reorganization of work –

downsizing and empowerment

13Chapter 1


Class Assignment Car Production Plant

Using your method of Efficiency in order to make the Automotive plan more profitable, come up with a plan and present to the automotive workers.

1. Sell them on why this is great for them as workers and increase efficiency.

2. Be prepared to handle objections

14Chapter 1


Teams

Group 1 N. M., S. S., C. N., R. H., J. V.,

V. S., M. B., F. V., A. R.

Group 2 K. C., C. S., R. F., H. K., R. P.,

A.M. S., M. J., J. McD., A. Ro.

Group 3 J. K., D. D., E. McG., K. M., J. C.,

E. T., P. T., J. Z., J. S.

15Chapter 1


Lesson 1.3 The Contributions of Business

Goals Identify two ways a nation measures its

economic growth and prosperity. Describe the benefits of business

ownership to the nation and individuals.

16Chapter 1


The Contributions of Business

Business growth and prosperity– Gross domestic product (GDP)

— total market value of all goods and services produced in a country in a year

– Individual well-being — home ownership, consumer products, self-improvement, savings

17Chapter 1


Unreported Income

Underground Economy

Drug money Babysitting Lawn service Part time jobs Counterfeit

merchandise 5% - 20%

18Chapter 1


COUNTRIES WITH LARGEST GDPs

0

2

4

6

8

10

12

14

Italy

France UK

Ger

man

yIn

dia

Japa

n

China

EUU.S

.

GDP in trillions

19Chapter 1


The Contributions of Businessa big +

Business ownership– Popularity of small businesses – easy,

desire to be own boss– Growth of franchise businesses -

McDonalds– Risks of ownership 1 out of 4-5 fail in 3

years– Obligations of ownership - community– Intrapreneurship In-company business– Studying business principles and

management

20Chapter 1


INTRAPRENEURSHIP

Intrapreneur — an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service

Chapter 1 Characteristics of Business 1 Chapter 1 Characteristics of Business ©2008...

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