Foundations of Business (MGT1104)

Business

An activity that provides goods and services

Revenue

Income made from selling goods

Profit

Whats left after bills are paid. (Rev-cost)

Participants

Owner

Stakeholders

Those with an interest in the company

Management

Responsible for work performance of others

Operations

Converting resources (labor

Marketing

Identify customer needs and design a product for them.

Accounting

Measure

Financial Accounting

Asses financial strength (internal and external use)

Managerial accounting

Prep info/reports and its used internally.

Finance

Plan

Macroenvironment

Business has little control over outside factors. (P.E.S.T.E.L.D)

P.E.S.T.E.L.D (outside factors)

Political

Factors of Production

Used to turn an input into an output. Resources to product.
Land

Team

Those who work together to achieve a specific goal.

Self Managing

Teams lead by members. They have autonomy.

Manager Led

Like a sports team with a central director

Cross Functional

Taking advantage of everyone strengths

Virtual Teams

Online

Groupthink

When everyone is on the same page and conforms to rules

Teams work b/c

Theyre effective

Group Cohesion

Can be grouped bc of small size

Task Facilitating Roles

Accomplish team goals

Relationship Building

Challenge unmotivated behavior or help group members understand their roles.

Blocking Roles

Inhibiting performance of another team member.

Economics

Study of production

Households

Provideo and consume goods and services (workers

Economic Systems

Study relationsip between household and business. Allocate resources to a society.
---
What needs to be produced

Planned Systems

Government controls allocation and distrubtuon of some or all goods and services

Communism

PS: highest controll gov where gov controls most enterprises and dictates how goods will be produced.

Socialism

Gov stands with health care and some utilities and banking may be gov owned. Allowed privately owned businesses

Free Market

G&S price determined by competition

Capatilism

Competition dictates how goods and services are allocated with limited gov involvement.
Can own land and have to pay taxes. Control over prices

Mixed Market Econ

Mix to allocate G&S better. You can't have purely one or the other.

Economic Spectrum

communism-----pure competition.
As you move from left to right

Privatization

Adopt more capatilstic characteristics and conver gov businesses to private ownership.

Free Market

Adam Smith

Laissez Faire

Leaving things alone

FDA

Food and drug admisinstration. Where gov intervenes in our capatalistic society that has hints of socialism.

Perfect Competition

Buy standard products from numerous businesses. Sellers accept the going price.

Demand

Quantity of product buyers are willing to purchase at various prices.

Supply

Quantity of a product a seller will sell at various prices

Equilibrium Price

Where two curves would meet graphed together. Without outside influences

Monopolistic

Many sellers selling identical products with some differenciation...with limited control over price.

Oligopoly

Few sellers selling lots.
Some control over prices
High price to start so most people dont.
WHen someone lowers a price

Monopoly

One seller

Natural: public utilities such as electrical and gas suppliers.
Can't change prices bc they are regulated.

Legal: Given Patent so there is no competition
can control some of the price

Economic Goals

Growth

GDP

Measuring performance of economy from all goods and services produced in a year.

Business Cycle

3-5 Years
Prosperity:Econ expands

CPI

Reported by monthly buerau of labor statistics.
Measures rate of inflation.

Economic Indicators. Lagging and Leading:

Lagging: status of econ a gew months past. Shows unemployment.
Leading: 3-12 months in the future. Looks for unemployment claims

Monetary Policy

Fed Reserve System increases or decreases money supply and raises or lowers interest rates.

Fisical Policy

Relies on gov spending and taxation. How gov increases taxes when we are in a recession vs decreasing when inflation.

Ethics

Know right from wrong

Ethical Issue

Difficult Social questions w contrversy

Ethical Dilemmas

Situations hard for an individual bc there are negative consequences. (right vs right)

Insider Trading

Acting on info that isn't avaible to the public or trading it to someone else.

Bribes

Consider time

Whistle Blowing

Individual who exposes illegal or unethical behavior.

CSR

Balance responsibility toward stakeholders when making economic

CSR Owners

Invest money and capital into the company

CSR Managers

Safeguard assets

CSR Employees

Get to have safe enviroments and benefits

Customer Rights

Safe Products
Informed about a product
Choose
Heard

Federal Trade CommissionFTC

Consumer protection law

Ethical Decision

Right vs Wrong

Import

Buy from other places

Export

Sell to other places

Absolute Advantage

The product can make it using fewer resources than other countries.

Comparitive Advantage

Can produce a product at a lower oppourtunity cost compared to another nation.

Balance of Trade

Imports- exports (selling more is a surplus!)

Balance of Payment

Money coming in- money going out.

Licensing Agreement

Allow foreign company to sell products of a producer/ use its intellectual property in exchange for royaltee fees.

Franchise

Company grants foreign company to use its brand name and sell its products.

Contract Manufacturing

Form of outsourcing

Strategic Alliances

Agreement between two companies to pool resources to achieve business goals that benefit both partners.

Joint Ventures

Alliances which partners fund seperate entities to manage joint operations (magazines in dif languages)

FDI

Formal establishment of bus operations on foreign soil (job outsourcing)

Foreign Subsidairy

Independeny company owned by a foreign firm. Gives the parent company full access to local market but its exempt from laws that hamper foreign firms.

Multinational Corporations

Local talent oriented in foreign countries to act locally and have a target audience. Outsourcing is a con

High and Low context

Americans get right to it and other regions initiate small talk and are not as direct.

Economic Development

Seek well being in another country.Know if your product will do well there. Attractive country is one w low annual income. They want to move up the economic development ladder (reliable banking

Foreign Corrupt Practicing Act

Prohibits distrubitons or bribes

Subsidies

Gov payments you get to offset some of the costs of production (farmers get income then they can sell the food for a certain rpice without consulting marekt price)

Protectionism

Protect comestic industried by reducing foreign competition

Tarrifs

Taxes on Imports

Quotas

Imposes limits on the quantity of a good that can be imported over a period of time.

Dumping

Practice of selling exported goods below normal price.

Embargo

Banning imports or exports to or from a specific country

General Agreement on Tariffs and Trade

Encouraged free trade by regulating and reducing trades by providing forumn for resolving trade disputes.

IMF

Loans money to coutnries w troubled economies

World Bank

Economic assistance for poor and developing countries.

NAFTA

Agreement amoungst gov to open boarders to unrestricted trade. (one economic zone w basically no trade barriers)

EU

Common Market. entitities. Have poltical and social cooperations. Tax and tariff outside goods.`

Joint Currency

Euro. Harder to pay debt because its been piling up.

Bus Research

Info gathered

Levels of topics

Company

Scholarly or peer reviewed

Offical and worth using

Boolean Logic/ operators:

Specific words to get best results
"and"