Intro To Business Management

Contemporary Business Chapters 1-3

Business

all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.

Goods

Tangible products that can be physically bought or sold

Services

intangible products that provide benefits to others or assistance from others

profits

difference between cost of creating and selling a product or service and what customers pay for it, representing savings earned by business people who take risks to meet people’s needs

not-for-profit organizations

business establishments that have primary objectives other than returning profits to their owners

factors of production

5 basic imputs: land, labor, capital, entrepreneurship, and knowledge

land

used in production of good. includes in production inputs, or natural resources that come from land and are useful in their natural states such as oil, gas, minerals, and timber.

labor

includes anyone who works.

included both in physical labor and intellectual inputs contributed by works

capital

includes technology, tools, information, and physical facilities

entrepreneurism

willingness to take risks to create and operate a business

knowledge

expertise, information, and intellectual capabilities that individuals and organizations use to drive innovation

private enterprise system

economic system that rewards companies for their ability to identify and serve needs and demands of customers

capitalism

economic system that rewards companies for their abilities to perceive and serve needs and demands of consumers.co

competition

battle among businesses for consumer acceptance

private property

right to own, use, buy, sell and bequeath land, buildings, machinery, equipment, patents, individual possessions, and various of intangibles kinds of property

entrepreneur

a risk taker in a private enterprise system

a person who seeks a profitable opportunity and takes necessary risks to set up an operation of a business

consumer orientation

business philosophy that focuses first on determining unmet consumers wants and needs and then designs products to satisfy needs.

branding

process of creating, identifying in consumers minds for a good, service, or company

brand

name, term, sign, symbol, design, or some combination that identifies products of 1 company and differentiates them from competitors’ offerings

transaction management

building and promoting products in hope that enough customers will buy them to cover costs and earn profits

relationship era

business era in which companies seek way to actively nurture customer loyalty by carefully managing every interaction.

social era

business era in which companies seek ways to convey and interact with customers using technology

Relationship management

collection of activities that build and maintain on going beneficial ties with customers and other parties

strategic alliance

partnership formed to create a competitive advantage for businesses involved

diversity

blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a company’s chances of success

outsourcing

using outside vendors by contracting workers out to another party, for production of goods or fulfillment of services and functions previously performed in house

offshoring

practice of relocating business processes including both production (manufacturing) and services (accounting) to lower cost overseas locations

nearshoring

out shoring production or services to locations near a company’s home base or closer to customers

crowd sourcing

enlisting a collective of talent of people to get work done

vision

ability to perceive a marketplace needs and what an organization must do to satisfy them.

social responsibility

business’s consideration of society’s wellbeing and consumer satisfaction. in addition to profits.

critical thinking

ability to analyze and pinpoint problems or opportunitiesc

creativity

capacity to develop solutions to problems

business ethics

standards of moral values regarding right and wrongs in work environments

What happens to quantity demanded of a good when its price increases?

It decreases

What type of economic system is characterized by a government’s ownership of major industries?

Socialism

A monopoly is a market with _________

a single supplier who dominates the market

What are 2 main benefits an economic system should provide to its citizens?

stable business environment and sustained growth

What is primary goal of monetary policy?

to influence economic activity by managing the money supply and interest rates

Who is responsible for implementing monetary policy in the United States?

Federal Reserve System

Why is global expansion important for U.S. companies?

World’s population offers an additional path to economic growth

What is a challenge for multinational firms?

evaluating political, social, and economic trends that affect business operations

What is a top global economic risk in the World’s Economic Forum’s report?

Cost of living crisis

What are 3 primary functional areas of business activity?

management, marketing, and financing

Why is the quest for profit considered a central focus of business?

Allow company to provide incentive to employees to do the work needed

What economic system does the U.S. operate within?

Private Enterprise

What are the basic rights of the private enterprise system?

Right to profits, Right to private property, and Right to freedom of choice

What does competitive differentiation in private enterprise system?

unique combination of organizational abilities, products, and approaches that set a company apart

What is purpose of U.S. enacting fair competition laws?

Maintaining market competition and fairness for consumers

What major innovation introduced by Henry Ford became common during the Production Era?

Assembly Lines

In Relationship Era, businesses aim to nurture customer loyalty by…

Carefully managing every interaction with customers

How has technology impacted way teams collaborate in the workplace?

Enabled global teams to collaborate using messaging apps & video conferencing

What is an example of an external force that may face a business?

Feedback from customers, economic trends, and emerging employee needs

What is social responsibility in the context of business?

management philosophy that considers society’s well-being and consumer satisfaction

microeconomics

study of small economic unites such as individual consumers, families, and businesses

demand

willingness and ability of buyers to purchase goods and services

monopolistic competition

market structure in which large numbers of buyers & sellers exchange heterogeneous products so each participant has some control over price

economics

social science that analyzes choices people ad government make in allocating scarce resources

demand curve

graph of amount of product buyers will purchase at different times

equilibrium price

prevailing market price in which you can buy any item

macroeconomics

study of a nation’s overall economic issues such as how an economy maintains and allocates resources and how a government policies affect standards of living for citizens

monopoly

market structure in which a single seller dominates in trade in a specific good or service. Buyers cannot find any close substitutes.

communism

economical system in which all property would be shared equally by people of a community under the direction of a strong central government

mixed market economics

economic system that draws from both types of economy to different degrees

gross domestic product(GDP)

sum of all goods and services produced within a country’s specific time periodinflati

inflation

rising prices caused by combination of excess consumer demand and increases in the cost of production inputs

core inflation rate

inflation rate of economy after e