Chapter 1 - The Changing Face of Business

brand

a name, term, sign, symbol, design, or some combination that identifies the products of one firm and shows how they differ from competitors' offerings.

branding

the process of creating in consumers' minds an identity for a good, service, or company; a major marketing tool in contemporary business.

business

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

capital

production inputs consisting of technology, tools, information, and physical facilities.

capitalism

an economic system that rewards firms for their ability to perceive and serve the needs and demands of consumers; also called the private enterprise system

competition

the battle among businesses for consumer acceptance.

competitive differentiation

the unique combination of organizational abilities, products, and approaches that sets one company apart from its competitors in the minds of customers.

consumer orientation

a business philosophy that focuses first on consumers' unmet wants and needs, and then designs products to meet those needs.

creativity

the capacity to develop novel solutions to perceived organizational problems.

critical thinking

the ability to analyze and assess information to pinpoint problems or opportunities

diversity

the blending of individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a firm's chances of success.

entrepreneur

a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.

factors of production

four basic inputs for effective economic operation: natural resources, capital, human resources, and entrepreneurship.

human resources

production inputs consisting of anyone who works, including both the physical labour and the intellectual inputs contributed by workers.

natural resources

all production inputs that are useful in their natural states, including agricultural land, building sites, forests, and mineral deposits

nearshoring

the outsourcing of production or services to locations near a firm's home base

not-for-profit organization

organizations whose primary aims are public service, not returning a profit to their owners.

offshoring

the relocation of business processes to lower-cost locations overseas.

outsourcing

using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.

private enterprise system

an economic system that rewards firms for their ability to identify and serve the needs and demands of customers.

private property

the most basic freedom under the private enterprise system; the right to own, use, buy, sell, and hand down land, buildings, machinery, equipment, patents, individual possessions, and various intangible kinds of property.

profits

rewards for businesspeople who take the risks involved in offering goods and services to customers.

relationship era

the business era where firms seek to actively promote customer loyalty by carefully managing every interaction.

relationship management

the collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.

social era

the business era in which firms seek ways to connect and interact with customers using technology.

strategic alliance

a partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants to do business.

transaction management

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

vision

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