ppt01(1).pptx

Boone & Kurtz Contemporary Business Fourth Canadian Edition Khan, Canzer, Harms, Moreira Chapter 1 The Changing Face of Business Copyright ©2023 John Wiley & Sons, Canada, Ltd. Learning Objectives • • • • • • • LO 1.1 Define business. LO 1.2 Identify and describe the economic factors of product...

Boone & Kurtz Contemporary Business Fourth Canadian Edition Khan, Canzer, Harms, Moreira Chapter 1 The Changing Face of Business Copyright ©2023 John Wiley & Sons, Canada, Ltd. Learning Objectives • • • • • • • LO 1.1 Define business. LO 1.2 Identify and describe the economic factors of production. LO 1.3 Describe the private enterprise system. LO 1.4 Identify the seven eras in the history of business. LO 1.5 Explain current trends in business. LO 1.6 Identify the skills and attributes needed for today’s manager. LO 1.7 Outline the characteristics that make for a successful and admired Copyright ©2023 company. John Wiley & Sons, 2 Canada, Ltd. What is Business? • Business: All profit-seeking activities and enterprises that provide goods and services necessary to an economic system. • Profits: Rewards for businesspeople who take the risks involved in offering goods and services to customers. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 3 Factors of Production • Natural resources • Capital • Human resources • Entrepreneurship Copyright ©2023 John Wiley & Sons, Canada, Ltd. 4 Test Your Knowledge (1 of 3) Why are the four factors of production important? a) The factors of production are regulated by the government. b) Human resources will always be the most important factor of production. c) Managing all four of the factors of production is critical for the successful operation of a business. d) Firms need to understand how to reduce the cost of production if they are going to be successful. Copyright ©2023 John Wiley & Sons, 5 Answer: d Canada, Ltd. The Private Enterprise System Capitalism o Adam Smith known as father of capitalism. o “invisible hand” of competition. o Economic system determines business ownership, profits, and resources. o Firms rewarded for their ability to serve the needs of consumers o Minimizes government intervention. • Competition: The battle among businesses for consumer acceptance. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 6 Basic Rights within a Private Enterprise System Copyright ©2023 John Wiley & Sons, Canada, Ltd. 7 The Entrepreneurship Alternative An Entrepreneur: • Is a risk taker. o Takes financial, personal, social, and career risks. • Sees a potentially profitable opportunity . • Devises a plan to achieve success in the marketplace and earn those profits. • Fuels the economy. • Provides innovation. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 8 Share of Employment in the Private Sector in Canada in 2019, by Industry Source: From Statisa, “share of employment in the private sector in Canada in 2019, by industry,” December 10, 2021, accessed March 24, 2022. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 9 Seven Eras in the History of (1Period of 2) •Business The Colonial o Primarily agricultural; prior to 1776 • The Industrial Revolution o Mass production by semi-skilled workers, aided by machines; 1760-1850 • The Age of Industrial Entrepreneurs o Advances in technology and increased demand for manufactured goods, leading to enormous entrepreneurial opportunities; late 1800s • The Production Era o Emphasis on producing more goods Copyright ©2023 John Wiley & Sons, faster, leading to Canada, Ltd. 10 Seven Eras in the History of (2 ofEra 2) •Business The Marketing o Consumer orientation, seeking to understand and satisfy needs and preferences of customer groups; since 1950s • The Relationship Era o Benefits derived from deep, ongoing links with individual customers, employees, suppliers, and other businesses; began in 1990s • The Social Era o Businesses interact, connect, communicate, share, and exchange information in virtual communities and networks around Copyright the world; since 2004 ©2023 John Wiley & Sons, 11 Canada, Ltd. Test Your Knowledge (2 of 3) Identify the business era during which managers began to pay more attention to what consumers wanted and needed rather than simply to what the firm could produce. a) The Industrial Revolution b) The production era c) The marketing era d) The relationship era Answer: c Copyright ©2023 John Wiley & Sons, Canada, Ltd. 12 Managing Relationships Through Technology • Relationship Management: The collection of activities that build and maintain ongoing, mutually beneficial ties with customers and others. o Relationship management depends on technology Copyright ©2023 John Wiley & Sons, Canada, Ltd. 13 Current Trends • Reliable workers dedicated to promoting strong ties with customers and partners. • Workforces capable of efficient, high-quality production. • Able to compete in global markets. • Technically savvy and innovative. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 14 COVID-19 • Several trends that have emerged due to disruptions caused by the pandemic: o Increase in adoption of digital technologies. • Online purchasing, remote work / study via digital conferencing software. o o Changes in work attitudes and development opportunities due to isolation. Remote work versus being physically present. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 15 Changes in the Workforce (1 of 2) The Aging Population/Shrinking Labour Pool • Many Baby Boomers are hitting the peak of their careers, while Generations X and Y are building their careers. • More generations mixing in the workplace than ever before. • Technology has intensified the hiring challenge by requiring workers to have ever-more advanced Copyright ©2023 John Wiley & Sons, 16 Canada, Ltd. skills. Changes in the Workforce (2 of 2) Increasingly Diverse Workforce • Two-thirds of Canada’s population growth is due to international immigration, particularly from Asia. • Employee teams with individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities are more effective. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 17 Test Your Knowledge (3 of 3) The Internet has made possible another business tool for staffing flexibility: ______, or using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country. a) b) c) d) outsourcing nearshoring offshoring partnering Answer: a Copyright ©2023 John Wiley & Sons, Canada, Ltd. 18 Today’s Manager • Vision • Critical thinking and creativity • Ability to lead change Copyright ©2023 John Wiley & Sons, Canada, Ltd. 19 Vision • Vision: The ability to perceive marketplace needs and what an organization must do to satisfy them Copyright ©2023 John Wiley & Sons, Canada, Ltd. 20 Critical Thinking and Creativity Critical thinking • The ability to analyze and assess information to pinpoint problems or opportunities Creativity • The capacity to develop novel solutions to perceived organizational problems Copyright ©2023 John Wiley & Sons, Canada, Ltd. 21 Ability to Lead Change • Guide employees and organizations through changes • Managers must be comfortable with tough decisions in fluctuating conditions • Factors that require organizational change can come from external and internal sources Copyright ©2023 John Wiley & Sons, Canada, Ltd. 22 What Makes a Company Admired? • Solid profits • Stable growth • Safe and challenging work environment • High-quality goods and services • Business ethics and social responsibility Copyright ©2023 John Wiley & Sons, Canada, Ltd. 23 What’s Ahead • New technologies • Population shifts o Emerging nations • Shrinking global barriers o Trade, communication, transportation Copyright ©2023 John Wiley & Sons, Canada, Ltd. 24 Copyright Copyright © 2023 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein. Copyright ©2023 John Wiley & Sons, Canada, Ltd. 25