MGMT 1 Chapter 2 Reading

entrepreneurs

people who take the risks and reap the rewards associated with starting a new business enterprise.

business

any activity that provides goods and services to consumers for the purpose of making a profit.

revenue

the funds an enterprise receives in exchange for its goods and services.

profit

what is left after paying the bill.

owner(s)

role of investing money in the business.

employees

people who work for the company and help reach its goals.

customers

people who give the business money for goods and services provided.

stakeholders

those with a legitimate interest in the success or failure of the business and policies it adopts. (their interests sometimes conflict with each other)

functional areas

activities needed to operate a business. eg, management, operations, marketing, etc.

management

involves planning for, organizing, leading, and controlling a company’s resources so that it can achieve its goals.

operations manager

the person who designs and oversees the transformation of resources into goods and services.

tangible products

intangible products

marketing

a company does to identify customers’ needs and design products to meet those needs.

accountants

measure, summarize, and communicate financial and managerial information and advise other managers on financial matters.

financial accountants

prepare financial statements to help user, both inside and outside the organization.

managerial accountants

prepare information (eg, cost of materials used in production process) for internal use only.

finance

planning for, obtaining, and managing a company’s funds. eg, how much money does the company need?

macro-environment

big picture world external to a company over which the business exerts very little if any control.

PESTEL model

tool for analyzing external factors that influences businesses. [Political, Economic, Sociocultural, Technological, Environmental, Legal]