Chapter 1 - The Nature of Business PDF

CHAPTER 1 - THE NATURE OF BUSINESS Created @September 16, 2024 5:43 PM 1. Definire concetti basici come business, prodotto, profitto, ed economia 2. Identifica...

CHAPTER 1 - THE NATURE OF BUSINESS Created @September 16, 2024 5:43 PM 1. Definire concetti basici come business, prodotto, profitto, ed economia 2. Identificare i principali partecipanti e attività dei business 3. Perché studiare business è importante? 4. Confronta i 4 tipi di sistemi economici Objectives 5. Qual è il ruolo del supply, demand, e competition in un free- enterprise system? 6. Come è misurata la salute dell’economia? 7. Come si è evoluta l’economia americana? 8. Qual è il ruolo dell’imprenditore in economia? Status Revisionato Strength Sufficiente Importance Importante Introductions 💡 Business → individuals or organization who try to earn a profit while trying to satisfy people’s needs, while maintaining social responsibility. CHAPTER 1 - THE NATURE OF BUSINESS 1  💡 Nonprofit organization → do not have the fundamental purpose of earning profits, although they may provide goods or services and engage in fund raising. total income - expenses = total profit To earn a profit, a person or organization needs management skills to plan, organize, and control the activities of the business and to find and develop employees so that it can make products consumers will buy. The nature of business The people and activities of business Management Management involves coordinating employees actions to achieve the firm’s goals, organizing people to work efficiently and motivating them to achieve the business’s goals. Marketing Marketing gather information and conduct research to determine what customers want. Marketing manages: price charging for product when making products available CHAPTER 1 - THE NATURE OF BUSINESS 2  where making products available Finance It is primal responsibility of the owners to provide financial resources for the operation of the business. The owners have the most to lose if the business fails to make a profit. Finance refers to all activities concerned with obtaining money and using it effectively BEFORE YOU CREATE SOMETHING, THERE MUST BE INTEREST FROM THE CONSUMER The economic foundations of business Economics → The study of how resources are distributed for the production of goods and services within a social system Those resources are: Natural resources Human resources Financial resources (capital) → funds used to acquire the natural and human resources needed to provide products Intangible resources Economic systems Economic systems → a description of how a particular society distributes its resources to produce goods and services. A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with a limited supply of resources. CHAPTER 1 - THE NATURE OF BUSINESS 3  The free-enterprise system Many large economies are free-enterprise, such as U.S., Canada and Japan, and many communist and socialist countries apply free-enterprise principles, such as China and Russia. The basic individual and businesses rights must exist for free enterprise for work: right to own property right to earn profits and use them as one wishes right to make decisions that determine the way the business operates right to choose what career to pursue, where to live, what goods and services to purchase Supply and demand supply → the number of products that businesses are willing to sell at different prices at a specific time demand → the number of goods and services that consumers are willing to buy at different prices at a specific time CHAPTER 1 - THE NATURE OF BUSINESS 4  The nature of competition 💡 Competition → rivalry among businesses for consumers’ dollars Four types of competition: Pure competition, there are a lot of small businesses selling one standardized product. Pure competition usually increments the quality of goods and services available Monopolistic competition, less businesses and not as much competition, also the differences among the goods they sell are small Oligopoly, there are few businesses selling a product Monopoly, the market structure that exists when there is only one business providing a product in a given market. The government permits such monopolies because the cost of creating the good or supplying the service is so great that new producers cannot compete for sales. CHAPTER 1 - THE NATURE OF BUSINESS 5  💡 for example, the airline industry has a oligopoly type of competition. In the airline industry, for example, when one airline cuts fares to boost sales, other airlines quickly follow with rate decreases to remain competitive. On the other hand, airlines often raise prices at the same time Economic cycles and productivity Economic expansion occurs when an economy is growing and people are spending more money. Their purchases stimulate the production of goods and services, which in turn stimulates employment. The standard of living rises because more people are employed and have money to spend. → this may result in INFLATION, continuous rise in prices Economic contraction occurs when spending declines. Businesses cut back on production and lay off workers, and the economy as a whole slows down. → this may result in RECESSION, continuous decline in production, employment and income CHAPTER 1 - THE NATURE OF BUSINESS 6  The american economy technolgy - includes the methods and processes creating applications to solve problems, perform tasks and make decisions AI big data blockchain drones Big Data 4 factors big data developed: 1. Developmenet of information technology systems 2. internet 3. social media 4. internet of things → big data refers to the increasing complexity and granularity of information with key characteristics: volume (quantity of data) velocity (speed at which data is created) CHAPTER 1 - THE NATURE OF BUSINESS 7  variety (the different types of data) value (data generates value in businesses) veracity (truthfullness of the data) Application of big data Airlines: british airways uses data to analyse flights, including identifying trends financial services: ubs has over 70.000 employees and uses data to support their human resources function Toys: LEGO uses data to improve the shopper experience by monitoring online forums The role of the entrepreneur Entrepreneur - an individual who risks money, time, and effort tot develop for profit an innovative product or way of doing something let the free-enterprise system help them succeed change business practices through new technology and innovative management techniques The role of ethics and social responsibility in business promote public confidence in corporate america foster business ethics encourage socially responsible behavior CHAPTER 1 - THE NATURE OF BUSINESS 8