Business, Competition, and New Ideas

core values

- beliefs and principles that guide a business's actions

- businesses share their ore values to get everyone on the same page and working toward the same goals

- these values also help employees make decisions that match what the business stands for

company culture

shared values and behaviors that shape how people work ad interact in a business

core competencies

an individual's or business's capabilities, skills, and expertise that contribute to their ability to outperform rivals and achieve competitive advantage

vision statement

provides a concise description of a business's core values and aspirations

mission statement

provides a description of what a business does and how the business will achieve its long-term goal

for-profit business

- the goal to earn profits, fulfill their mission, and remain competitive over time

- they improve profits by increasing revenue and/o decreasing costs

social enterprise

- the goal is to earn profits while also achieving social or environmental goals

- they create social impact through their products, operations, or how profits are used

nonprofit organizations

- the goal is to serve the public rather than earn profit for owners

- any surplus funds are reinvested back into the organization by law

- they often rely on donations, grants, and fundraising

business ethics

- refers to the moral principles and standards that guide behavior and business decision

- unethical behavior can occur at all levels of business

ex. misleading customers, falsifying financial records, misusing company property

incentive structure

the specific setup of rewards and penalties that a company uses to motivate employee behavior and align it with business goals

5 common unethical business practices

1. fraud and theft

2. financial misrepresentation

3. corruption and bribery

4. workplace harassment and discriminations

5. deceptive marketing and false advertising

examples that encourage ethical behavior

1. establish clear codes of conduct

2. training employees on ethical guidelines

3. enforcing consequences for unethical actions

4. modeling ethical behavior through leadership decisions

ethical dilemma

- occurs when a core value, such as fairness, transparency, or empathy, conflicts with another value, business goal, or practice

- are not about "right" and "wrong" but involve balancing trade offs without a clearly correct solution

internal stakeholders

are individuals or groups within a business who are directly involved in its operations, decisions, and outcomes

ex. owners, managers, and employees

external stakeholder

are individuals or groups outside the business who are affected by its actions and decisions

ex. customers, suppliers, investors, government agencies, and community members

sole proprietorship

- is a business owned and operated by one individual, with no legal separation between the owner and the business

- the owner makes all decisions and keeps all profits, but is also personally responsible for all debts and obligations

- liability is unlimited, meaning the owner's personal assets, such as saving or property, can be used to pay business debts

- have less access to funding than larger corporations

liability

refers to legal responsibility or a business's debts and losses

partnership

- a business owned and operated by two or more individuals who share ownership and decision making

- typically share profits, losses, an responsibilities based on their agreement

- liability is unlimited, meaning each partner can be held personally responsible for the business's debts

- sole proprietorship funding < partnership funding < corporation funding

limited liability company (LLC)

- is a business structure that combines features of partnerships and corporations

- owners, called members, have limited liability, meaning they are not personally responsible for the business's debts beyond their investment

- LLC offer flexible management structure, meaning owners can be decide how responsibilities and profits shared without he struct rules that corporations must follow

- often chosen by owners who want limited liability without the complexity of a corporation

corporation

- a business owned by shareholders and operated as a separate legal entity from its owners (or shareholders)

- greatest access to funding because they can sell ownership (stock)

- face more rules, regulations, and formal management structures than other types of business organizations

- elected board of directors

shareholder

own the corporation and have limited liability, meaning they are not personally responsible for he business's debts beyond their investment

executive leaders

CEOs and CFOs who are responsible for the overall vision, operations, strategy, ad performance of he business

outsourcing

occurs when a business hires another firm to perform specific tasks, such as payroll, information technology (IT),or customer support, to reduce costs or access specialized skills

managers

- lead specialized departments of larger business and report to executive leaders

sales and marketing

- researches customer needs, promotes products, and develops strategies to attract and retain customers

- focus on pricing, advertising, branding, and building relationships to increase sales and market share

research and development (R&D)

- design new products and improve existing goods, services, and processes

- goal is to innovate and better meet customer needs while helping the business stay competitive

operations and quality control

- manage the production of goods or the delivery of services

- focus on efficiency, quality control, and ensuring products are delivered to customers on time

accounting

- record financial transactions, track revenues and expenses, and prepare financial statements

- their work helps monitor the financial health of the business and supports decision making

finance

- manage the business's funds and plan for future financial needs/expansion

- they make decisions about budgeting, investing, borrowing, and using financial data to improve performance

human resources (HR)

- recruit, hire, train, and evaluate employees

- they ensure business has skill workforce and manage compensation, benefits, and workplace policies