NICKELS M C HUGH M C HUGH © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
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Transcript of NICKELS M C HUGH M C HUGH © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Chapter Chapter OneOne
Meeting the Challenge Meeting the Challenge of Today’s Dynamic of Today’s Dynamic
BusinessBusiness EnvironmentEnvironment
What Is Business?• Activity seeking profit
• Provides goods/services
• Satisfy standard of living- quality of life
• Nonprofit organizations
Objectives of Business
SurvivalSurvival
GrowthGrowthSocial Social
ResponsibilityResponsibilityProfitProfit
Entrepreneurship vs.
Employment
• Opportunities For Entrepreneurs• Matching Risk With Profit
– Revenue - Expense = Profit(Loss)
– Risk
Factors of Production
LandLand
LaborLabor
CapitalCapital
EntrepreneurshipEntrepreneurship
KnowledgeKnowledge
Economic Environment
$ Freedom of ownership
$ Contract laws
$ Elimination of corruption
$ Tradable currency
$ Minimum taxes & regulation
Technological Environment
• Internet
• E-commerce
• Role of Intermediaries ?
• Responsiveness to Customer
• Information Management
A Business and Its Stakeholders
stakeholders are groups that are clearly affected by the products, policies, and practices of the firm. The challenge of the 21st century is to see that organizations work together to ensure all stakeholders’ needs are considered and satisfied as best as humanly possible.
The 21st Century Workforce
Outsourced Suppliers
25%
Permanent Employees
35%
Contract Workers
15%
Contingent Workers
25%
Source: Workforce Magazine, Jan. 1998
E-commerce Explosion• Transaction costs
• Size of purchase per transaction
• Integration
• Flexibility
• Catalog size
• Customer Interaction
Competitive Environment• Customer Service
– Customer Demands– Speed
• Community/Stakeholder Needs
• Natural/Ecological Concern
Social Environment• Diversity/Multicultural
• Aging/Graying of America
• Two Income Families
• Single Parent Families
U.S. Population Shifts
72%
12%12%
4% 1%
62%
18%13%
6%1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1999 2025
WhiteHispanicAfro-Amer.AsianAmer. Indian
Source: Census Bureau
Dealing With A Multicultural Workforce
Show Respect for Culture/Value of Others
Avoid Stereotyping Include All Workers in Acculturalization Be Empathetic But Be Yourself Avoid Imposing Your Culture/Values on
Others
Show Respect for Culture/Value of Others
Avoid Stereotyping Include All Workers in Acculturalization Be Empathetic But Be Yourself Avoid Imposing Your Culture/Values on
Others