business found

business?

A business is an organization that engages in commercial, industrial, or professional activities with the goal of making a profit by providing goods or services that satisfy a need or want. 

•       purpose of business?  

To create value for customers, employees, shareholders, and society by delivering useful goods/services and operating sustainably.  

•       How can businesses create value?  

•             Offering high-quality, fairly priced products

•             Creating a positive workplace

•             Being socially responsible

•             Building strong relationships with stakeholders

•             Generating returns for shareholders

stakeholder value?

Value created for everyone affected by the business — employees, customers, suppliers, shareholders, communities, and the environment. Patagonia is used as the example.

•       Why is the internal environment important for business?

Internal factors like culture, employees, management, and resources directly impact performance and how well a company can meet its goals.  

•       What is the external environment in business? 

Outside forces a company cannot control — economic, political, social, technological, legal, and environmental factors. These strongly influence success.

•       How does technology impact business?  

Tech allows companies to automate processes, improve decision-making, personalize customer experiences, innovate products, and compete globally. AI, mobile apps, and automation are major examples.

•       innovation in business? 

Developing new ideas, products, or services that help companies stay competitive and meet changing customer needs. Entrepreneurs often drive innovation. 

•       What is the triple bottom line in business?  

A sustainability framework that examines:

·       People (Social)

·       Planet (Environmental)

·       Profit (Financial)

Companies aim to benefit all three.  

•       What is the difference between a shareholder and a stakeholder?  

•             Shareholder: Owns shares; interested in profit.

•             Stakeholder: Anyone impacted by the business (employees, customers, environment).

•       What is the role of government in business? 

Regulate, enforce laws, protect consumers, ensure fair competition, and stabilize the economy.

•       How can a company create value for its stakeholders? 

By supporting fair labor, ethical supply chains, sustainability efforts, long-term relationships, and environmentally responsible practices — Patagonia example. 

•       What is the role of innovation in business? 

Helps firms stay ahead of competitors, meet evolving customer needs, and adapt to global and technological changes. 

•       What are some examples of companies that have successfully implemented a triple bottom line approach, and how has it benefited them?

Patagonia: Uses recycled materials, supports the environment, treats workers well, and still performs profitably. This builds loyalty and a strong brand. 

The Body Shop: The Body Shop sources ingredients through fair-trade partnerships, avoids animal testing, and focuses on ethical, sustainable products. These practices strengthen customer trust and create a loyal global brand that remains profitable.

Ben & Jerry’s: Ben & Jerry’s integrates social activism into its business by supporting fair trade, climate action, and social justice issues. This strong mission-driven identity attracts values-aligned customers and boosts long-term brand loyalty and sales.

•       How can companies foster a culture of innovation, and what benefits can it bring to their business?

•             Encourage creativity and experimentation

•             Reduce fear of failure

•             Invest in technology

•             Support entrepreneurial ideas

•       What role does technology play in shaping the business landscape, and how can companies adapt to technological changes?

Tech changes communication, marketing, production, and customer expectations. Companies must invest in digital tools, AI, automation, and staff training. 

•       How can companies balance their business objectives with environmental concerns, and what benefits can it bring?

Using sustainable materials, reducing waste, conserving resources, and lowering emissions improves brand reputation, reduces long-term costs, and attracts ethical consumers.

What is the difference between ethics vs. legality?

•                 Ethics: Moral principles about right and wrong.

•                 Legality: What is allowed by law.

Something can be legal but still unethical.

•       What are the ethical decision-making process steps?

•                 Identify the ethical dilemma

•                 Gather information

•                 Stakeholder analysis

•                 Generate alternatives

•                 Ethical analysis (utilitarian, deontology, virtue ethics)

•                 Make a decision

•                 Implement & review

•       Example of a company that has been shown to have unethical business practices

Purdue Pharma — falsely marketed OxyContin as “non-addictive,” contributing to the opioid crisis. Faced lawsuits, bankruptcy, and severe reputation damage

•       What is the definition of branding?

Branding is the identity of a company — name, design, personality, and perception that help customers recognize and trust it.

•       What is the purpose of market segmentation?

To divide a broad market into smaller groups so the company can target them more effectively. 

•       What is the definition of positioning?

How a brand is perceived in the customer’s mind compared to competitors.

•       What are the 4 Ps of the marketing mix?

•                 Product

•                 Price

•                 Promotion

•                 Place (distribution)

•       What is the definition of target market?

The specific group of customers a company chooses to serve.

•       What is the difference between market segmentation and target market?

•                 Segmentation: Breaking the market into groups

•                 Target market: The segment the company selects to focus on

•       What is the role of branding in marketing?

Branding builds recognition, trust, emotional connection, and loyalty.

•       How does customer feedback contribute to the success of a marketing campaign?

It improves marketing decisions, messaging, products, and overall customer experience.

•       Example of a company that successfully used social media to promote their products and the impact of that effort.

•                 Nike, Amazon personalization, or Coca-Cola’s “Share a Coke” (strong example from your module):

•                 Coca-Cola used personalized names to increase social sharing, emotional connection, and sales. 

•       What are the benefits of using data analytics in marketing?

·       Understand customer behavior

·       Personalize experiences

·       Optimize campaigns

·       Predict trends

•       Financial Management (definition, five parts)

Financial management is the process of planning and controlling financial resources. 

The five parts:

·       Planning

·       Resource allocation

·       Performance measurement

·       Risk management

·       Stakeholder management

•       Balance sheet (definition)

A snapshot of a company’s assets, liabilities, and equity at a specific point in time — shows financial position.

Income statement

Shows revenue and expenses over a period to determine profitability. 

•       Cash flow statement (definition)

Shows how much cash flows in and out of a business — measures liquidity and cash position.  

•       Liquidity ratios (definition, types, formulas to calculate)

Measure ability to meet short-term obligations. Higher = better.

·       Current Ratio:

Formula → Current Assets ÷ Current Liabilities

·       Quick Ratio:

Formula → (Current Assets – Inventory) ÷ Current Liabilities

•       Solvency ratios (definition, types, formulas to calculate)

Measure ability to meet long-term obligations.

·       Debt-to-Equity:

Formula → Total Debt ÷ Total Equity

·       Interest Coverage:

Formula → EBIT ÷ Interest Expense

•       Profitability ratios (definition, types, formulas to calculate)

Measure ability to generate profit.

·       Gross Profit Margin: Gross Profit ÷ Revenue

·       Net Profit Margin: Net Income ÷ Revenue

·       Return on Equity (ROE): Net Income ÷ Total Equity