COMM 1800 Business Concepts Overview

Instructor Background

• Professor David Costanza specializes in Industrial/Organizational Psychology.
• Educational background includes a B.A. from the University of Virginia and an M.A. & Ph.D. from George Mason University.
• Experience includes five years in the private sector and a role as Sr Consortium Fellow at the US Army Research Institute.
• Research focuses on generational differences, organizational leadership, culture, and adaptation.

Course Overview

• COMM 1800 covers fundamental business concepts within a global context.
• Emphasis on the interconnected and multifaceted nature of business practices.
• Aims to illustrate how these concepts contribute to organizational success.

Syllabus Highlights

• Textbook provided at no cost.
• Office hours and communication protocols outlined.
• Technology expectations and grading policies explained.
• Inclusion of Honor Code and AI usage guidelines.
• Resources for well-being and accommodations included.
• Course materials are accessible weekly on Canvas.

Business Fundamentals

• Definition of a business: Organization producing products to satisfy needs while earning profit.
• Businesses are complex systems that create value through resource management to meet customer needs and achieve goals.

Reasons for Organization

• Division of labor enhances durability, reliability, and accountability.
• Enables leverage of large-scale technology.
• Establishes power and control to manage behaviors.
• Facilitates legal benefits regarding contracts, ownership, and liability.

Diverse Perspectives

• Business interests may include starting, building, or managing firms.
• Backgrounds of individuals involved can include management, accounting, finance, marketing, psychology, economics, and technology.
• Philosophical approaches can be subjectivist (interpretation) or objectivist (measurement).
• Economic contexts typically include capitalism, socialism, or hybrids.

Types of Organizations

• For-profit: Focus on earning profit.
• Non-profit: Goal to serve a social cause.
• Social enterprises: Combine business with social missions.
• Governmental agencies: Managed for public services.
• Social organizations: Aim for societal benefits.

Business Structures

• Sole Proprietorships: Flexible but high risk, e.g., consulting firms.
• Partnerships: Shared management, can be general or limited.
• Corporations: Can be private (owned by individuals) or public (stock sold to public).
• Joint Ventures: Collaboration between two or more companies for specific projects.
• S-Corporations: Operate like partnerships, offering limited liability.

Corporate Social Responsibility (CSR)

• CSR involves actions that promote social good beyond legal requirements.
• Ethical practices are prioritized over mere compliance with laws.
• Focus on balancing profit motives with broader social impacts.

Ethical Models

• Utilitarian: Maximizing overall happiness.
• Moral Rights: Upholding fundamental rights.
• Justice: Fair distribution of benefits and burdens.

Business Ethical Issues

• Potential issues include bribery, misuse of company resources, abusive behavior, and conflicts of interest.

Business Life Cycle Phases

• Emergence: Constantly evolving environments; new firms enter with lower capital requirements; high failure rates.
• Midlife: Differentiation, institutionalization, and stabilization of subsystems.
• Decline & Death: Businesses may face erosion, contraction, and complete collapse due to environmental changes and competition.

Business Decline Case Study

• The case of Sears illustrates decline due to failure to adapt to market changes and consumer behavior.
• Best Buy's shift from high-margin, commission-based sales to lower-margin models exemplifies challenges faced in changing industries.

Generative AI Competition

• Students are encouraged to use GenAI to propose solutions for pressing societal issues.
• Winning teams present ideas to executives, and top entries can receive feedback and monetary prizes.