Chapter 1 Business Mindset PDF

Developing a Business Mindset Chapter 1 Business Developing a in Action Business Mindset 8e Bovée/T hill  Introduction This chapter gets you ready for the whirlwind tour of the business world you will get in th...

Developing a Business Mindset Chapter 1 Business Developing a in Action Business Mindset 8e Bovée/T hill  Introduction This chapter gets you ready for the whirlwind tour of the business world you will get in this course, starting with a quick overview of what businesses do, and then some advice on making the leap from consumer to business professional. Copyright © 2017 Pearson Education, Inc. 1-2  Learning Objectives 1. Explain the concept of adding value in a business, and identify the major types of businesses. 2. List three steps you can take to help make the leap from consumer to business professional. 3. Discuss the five major environments in which every business operates. Copyright © 2017 Pearson Education, Inc. 1-3  Learning Objectives (cont.) 4. Explain the purpose of the six major functional areas in a business enterprise. 5. Summarize seven of the most important business professions. 6. Identify seven components of professionalism. Copyright © 2017 Pearson Education, Inc. 1-4 Understanding What Businesses Do Business  Any profit-seeking organization that provides goods and services designed to satisfy the customers’ needs Copyright © 2017 Pearson Education, Inc. 1-5 Exhibit 1.1 Adding Value to Satisfy Customers Copyright © 2017 Pearson Education, Inc. 1-6  Adding Value: The Business of Business Revenue  Money that a company brings in through the sale of goods and services Business model  A concise description of how a business intends to generate revenue Copyright © 2017 Pearson Education, Inc. 1-7  Adding Value: The Business of Business (cont.) Profit  Money left over after all the costs involved in doing business have been deducted from the revenue Copyright © 2017 Pearson Education, Inc. 1-8  Competing to Attract and Satisfy Customers Competitive advantage  Some aspect of a product or company that makes it more appealing to its target customers Copyright © 2017 Pearson Education, Inc. 1-9  Identifying Major Types of Businesses Not-for-profit organizations  Organizations that provide goods and services without having a profit motive; these are also called nonprofit organizations Copyright © 2017 Pearson Education, Inc. 1-10 Identifying Major Types of Businesses (cont.) Goods-producing Service businesses businesses  Companies that  Companies that create value by create value by making “things,” performing activities most of which are that deliver some tangible benefit to customers Copyright © 2017 Pearson Education, Inc. 1-11 Exhibit 1.2 Risk and Reward Copyright © 2017 Pearson Education, Inc. 1-12  Risk and Reward (cont.) Goods-producing businesses are often capital-intensive businesses Service businesses tend to be labor- intensive businesses Copyright © 2017 Pearson Education, Inc. 1-13  Risk and Reward (cont.) Barrier to entry  Any resource or capability a company must have before it can start competing in a given market Copyright © 2017 Pearson Education, Inc. 1-14  Seeing Business from the Inside Out Business mindset  A view of business that considers the myriad decisions that must be made and the many problems that must be overcome before companies can deliver the products that satisfy customer needs Copyright © 2017 Pearson Education, Inc. 1-15  Yolanda Diaz Mirador Enterprise http://kfoxtv.com/news/local/el-paso-singl e-mother-makes-multimillion-dollar-busine ss Copyright © 2017 Pearson Education, Inc. 1-16 Exhibit 1.3 The Business Mindset Copyright © 2017 Pearson Education, Inc. 1-17 Exhibit 1.3 The Business Mindset (cont.) Copyright © 2017 Pearson Education, Inc. 1-18 Exhibit 1.4 Positive and Negative Effects of Business Copyright © 2017 Pearson Education, Inc. 1-19 Exhibit 1.5 The Multiple Environments of Business Copyright © 2017 Pearson Education, Inc. 1-20 Recognizing the Multiple Environments of Business Social environment  Trends and forces in society at large Stakeholders  Internal and external groups affected by a company’s decisions and activities Copyright © 2017 Pearson Education, Inc. 1-21  Recognizing the Multiple Environments of Business (cont.) Technological environment  Forces resulting from the practical application of science to innovations, products, and processes Disruptive technologies  Those that fundamentally change the nature of an industry  Can be powerful enough to create or destroy entire companies Copyright © 2017 Pearson Education, Inc. 1-22  Recognizing the Multiple Environments of Business (cont.) Economic environment  The conditions and forces that affect the cost and availability of goods, services, and labor and thereby shape the behavior of buyers and sellers Legal and regulatory environment  Laws and regulations at local, state, national, and even international levels Copyright © 2017 Pearson Education, Inc. 1-23 Recognizing the Multiple Environments of Business (cont.) Market environment  A company’s target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers Copyright © 2017 Pearson Education, Inc. 1-24 Identifying the Major Functional Areas in a Business Enterprise Research and development (R&D)  Functional area responsible for conceiving and designing new products Information technology (IT)  Systems that promote communication and information usage through the company, or that allow companies to offer new services to their customers Copyright © 2017 Pearson Education, Inc. 1-25 Identifying the Major Functional Areas in a Business Enterprise (cont.) Manufacturing, production, or operations  An area where the company makes whatever it makes (for goods-producing businesses) or does whatever it does (for service businesses)  Purchasing, logistics, facilities management Copyright © 2017 Pearson Education, Inc. 1-26 Identifying the Major Functional Areas in a Business Enterprise (cont.) Marketing  Charged with identifying opportunities in the marketplace  Working with R&D to develop the products to address those opportunities  Creating branding and advertising strategies to communicate with potential customers, and setting prices Copyright © 2017 Pearson Education, Inc. 1-27 Identifying the Major Functional Areas in a Business Enterprise (cont.) Finance and accounting  Responsible for virtually every aspect of a firm’s finances  Ensuring that the company has the funds it needs to operate  Monitoring and controlling how those funds are spent  Drafting reports for company management and outside audiences such as investors and government regulators Copyright © 2017 Pearson Education, Inc. 1-28 Identifying the Major Functional Areas in a Business Enterprise (cont.) Human resources (HR)  Responsible for recruiting, hiring, developing, and supporting employees Copyright © 2017 Pearson Education, Inc. 1-29 Identifying the Major Functional Areas in a Business Enterprise (cont.) Business services  Exist to help companies with specific needs in law, banking, real estate, and other areas Copyright © 2017 Pearson Education, Inc. 1-30 Exploring Careers in Business Copyright © 2017 Pearson Education, Inc. 1-31  Achieving Professionalism Professionalism  The quality of performing at a high level and conducting oneself with purpose and pride Copyright © 2017 Pearson Education, Inc. 1-32 Exhibit 1.7 Major Functional Areas in a Business Enterprise Copyright © 2017 Pearson Education, Inc. 1-33 Exhibit 1.8 Elements of Professionalism Exhibit 1.7 Copyright © 2017 Pearson Education, Inc. 1-34  Being a Team Player Professionals know that they are contributors to a larger cause. Great team players know how to make those around them more effective. Being a team player also means showing loyalty to your organization and protecting your employer’s reputation. Copyright © 2017 Pearson Education, Inc. 1-35  Communicating Effectively Listen actively. Provide practical information. Give facts rather than vague impressions. Don’t present opinions as facts. Present information in a concise and efficient manner. Clarify expectations and responsibilities. Offer compelling, persuasive arguments, and recommendations. Copyright © 2017 Pearson Education, Inc. 1-36  Demonstrating Etiquette Etiquette  The expected norms of behavior in any particular situation Copyright © 2017 Pearson Education, Inc. 1-37  Maintaining a Confident, Positive Outlook Successful people are optimistic. Successful people buckle-down and get the job done despite obstacles. Energy, either positive or negative, is contagious. One negative personality can make an office miserable. Copyright © 2017 Pearson Education, Inc. 1-38  Applying What You’ve Learned 1. Explain the concept of adding value in a business, and identify the major types of businesses. 2. List three steps you can take to help make the leap from consumer to business professional. 3. Discuss the five major environments in which every business operates. Copyright © 2017 Pearson Education, Inc. 1-39  Applying What You’ve Learned (cont.) 4. Explain the purpose of the six major functional areas in a business enterprise. 5. Summarize seven of the most important business professions. 6. Identify seven components of professionalism. Copyright © 2017 Pearson Education, Inc. 1-40 Copyright © 2017 Pearson Education, Inc. 1-41