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Unformatted text preview: Definition of a business • activity that provides goods or services to consumers for the purpose of making a profit. Primary goals of business • Primary role of investing into your business, hiring employees to help run the business, and customers. Ultimately the goal is to satisfy the customers. Not for profit • Non profit organizations- organization that has a purpose other tan returning profits to owners. Nike sells goods or services? 2 Functional Areas of Business..3+ • Management – involves planning for , organizing, staffing, directing, and controlling a company’s resources so that it can achieve its goals. Managers plan by setting goals and developing strategies for achieving them. They organize activities and resources to ensure that company goals are met. • Operations – all companies must convert resources (labor, materials, money,information,and so forth) Person who designs and oversees the transformation of resources into goods or services is called a operations manager. • Marketing – consists of everything that a company does to identify customer’s needs and design products to meet those needs. All of the organizational activities involved in identifying customers needs and designing, pricing, promoting, and delivering products to meet those needs. • Accounting – accountants measure, summarize, and communicate financial and managerial information and advise other managers on financial matters. Two fields of accounting 1) Financial accounts – prepare financial statements to help users, both inside and outside the organization, assess the financial strength of the company. 2) Managerial accounts – prepare information, such as reports on the cost of materials used in the production process, for internal use only. • Finance – involves planning for, obtaining, and managing a company’s funds. Finance managers address such questions as: How much money does the company need? How and where will it pay the money back? What should it do it with the funds? Financial accountants/Managerial accountants..3 ^^^^ External forces that Influence business activities • Economy, government, consumer trends, and public pressure to act as good corporate citizens. A strong economy means people have more money to eat out at places where food standards are monitored by a government agency, the food and drug administration. Consumer trends (eating foods might be okay one year and out the next.) Finally, a number of decisions made by the industry result from its desire to be a good corporate citizen. Economics Economics – free enterprise system, supply and demand, and the nature of competition. Economics – is the study of how scarce resources are used to produce outputs – goods and services – to be distributed among people. Resources are the inputs used to produce outputs....
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