tailieunhanh - Lecture Business: A changing world (4/e): Chapter 1 - O.C. Ferrell, Geoffrey Hirt

Chapter 1 - The dynamics of business and economics. After reading this chapter, you will be able to: Define basic concepts such as business, product, and profit; identify the main participants and activities of business and explain why studying business is important; define economics and compare the four types of economic systems; describe the role of supply, demand, and competition in a free-enterprise system; specify why and how the health of the economy is measured. | Chapter One The Dynamics of Business and Economics The Nature of Business To create profits by: Selling products – Cars, food, clothing Providing services – Healthcare, insurance Business vs. Nonprofit Organization Business An individual or organization that tries to earn a profit by providing products that satisfy people’s needs, ex. IBM, Coca-Cola. Nonprofit Organization Provides products, especially services, for some purpose other than profits, ex. The Salvation Army, 4300 American colleges & universities. The Goals of Business For-Profit Sector: PROFIT – the difference between what it costs to make and sell a product and what the customer pays for it. Nonprofit Sector: GOALS – may provide goods or services but not for the purpose of earning profits. The People and Activities of Business People: Owners Employees Customers Other stakeholders: Investors Regulatory Agencies Activities: Management Marketing Finance Management Hiring Issues 32% Salary Location Opportunity for Growth . | Chapter One The Dynamics of Business and Economics The Nature of Business To create profits by: Selling products – Cars, food, clothing Providing services – Healthcare, insurance Business vs. Nonprofit Organization Business An individual or organization that tries to earn a profit by providing products that satisfy people’s needs, ex. IBM, Coca-Cola. Nonprofit Organization Provides products, especially services, for some purpose other than profits, ex. The Salvation Army, 4300 American colleges & universities. The Goals of Business For-Profit Sector: PROFIT – the difference between what it costs to make and sell a product and what the customer pays for it. Nonprofit Sector: GOALS – may provide goods or services but not for the purpose of earning profits. The People and Activities of Business People: Owners Employees Customers Other stakeholders: Investors Regulatory Agencies Activities: Management Marketing Finance Management Hiring Issues 32% Salary Location Opportunity for Growth Chance to learn new technology Perks Personal contacts 25% 24% 15% 2% 2% Issues Considered by Job Seekers Before Switching Jobs Source: Survey of 970 job seekers by , New York in Kemba J. Dunham, “The Jungle,” Wall Street Journal, July 3, 2001, p. B6. Why Study Business? It provides employment for most people. It provides the majority of products needed to survive and enjoy life. It will help prepare you for your future career. It will help you become a better informed consumer and member of society. Education Pays Average Annual Salary By Education Level Advanced Degree Bachelor’s Degree High School Diploma No Diploma $63,229 $40,478 $22,895 $16,124 Types of Resources Used by Business Natural land, forests, etc. (not made by people) Human physical/mental abilities used by people to produce goods and services Financial funds necessary to acquire needed natural and human resources What Is An Economic System? The way a society distributes its resources to produce goods and