Chapter_1 - Chapter 1 Managing Within the Dynamic Business...

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Unformatted text preview: Chapter 1 Managing Within the Dynamic Business Environment Learning Professional Business Strategies Two secrets of success: 1. retention of knowledge 2. keeping contacts Start a personal information system that contains information learned, contact names, business articles, etc... for later retrieval. You can use a paper system or save information in folders on your computer. Jot down notes from a personal meeting, something you learned in class, an article you read. Keep info on companies you are interested in for employment opportunities. Watch shows like Nightly Business Report or Jim Cramer's Mad Money and take notes. Read the business/financial section of the local newspaper and check out websites for national and international stories. Join local business groups as soon as possible to begin networking. Learning to Behave Like a Professional As the world becomes increasingly competitive, the gold goes to the individuals and the teams that have an extra bit of polish. The person who makes a good impression will be the one who gets the job, wins the promotion, or clinches the deal. Manners and professionalism must become second nature to anyone who wants to achieve and maintain a competitive edge. You can have good credentials, but a good presentation is everything. You can't neglect etiquette, or somewhere in your career you will be at a competitive disadvantage because of your inability to use good manners or to maintain your composure in tense situations. Say "Please" and "Thank you" when you ask for something. Open doors for others. Stand when an older person enters the room. Use a polite tone of voice. Be honest, reliable, dependable, and ethical at ALL times! Good habits to begin working on right now include: 1. Making a good first impression. 2. Focusing on good grooming. (What does business casual mean?) 3. Being on time. 4. Practicing considerate behavior. (Listen, don't interrupt, sit up straight) 5. Practicing good "netiquette." 6. Practicing good cell phone manners. (Silent and meeting mode) 7. Being prepared. Business etiquette may encompass different rules in different countries. Do your homework! (shaking hands, eating, giving gifts, presenting and receiving business cards) Unethical behavior can ruin your reputation, so think carefully before you act! Business & Entrepreneurship: Revenues, Profits, and Losses Business is any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses. Entrepreneur is a person who risks time and money to start and manage a business. Revenue is the total amount of money a business takes in during a given period by selling goods and services. A loss occurs when a business's expenses are more than its revenues. (Approximately 80,000 businesses in the US close each year!) Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. The wealth businesses generate and the taxes they pay may help everyone in their communities. A nation's businesses are part of an economic system that contributes to the standard of living and quality of life for everyone in the country. Standard of Living refers to the amount of goods and services people can buy with the money they have. (The US has one of the highest b/c of the wealth generated by its businesses.) Quality of Life refers to the general wellbeing of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy. It is the joy life brings beyond the possession of goods. Stakeholders are all the people who stand to gain or lose by the policies and activities of a business. (They include customers, employees, stockholders, suppliers, dealers, bankers, community members.) The need for the business to make profits may be balanced against the needs of employees for sufficient income. The need to stay competitive may call for outsourcing jobs to other countries, but that might do great harm to the community because many jobs would be lost. Outsourcing means contracting with other companies (often in other countries) to do some or all of the functions of a firm (production, accounting, etc...). Has serious consequences where jobs are lost. From production jobs to research and development and design functions. May prove disastrous if overseas companies use the info to product their own products. Insourcing happens when foreign companies set up design and/or production facilities in the US. (Honda and Toyota) Creates new jobs and helps offset outsourcing losses. Nonprofit Organization is an organization whose goals do not include making a personal profit. The Business Environment Business Environment consists of the surrounding factors that either help or hinder the development of business. 1. The economic and legal environment freedom of ownership contract laws elimination of corruption tradable currency minimum taxes and regulation 2. The technological environment information technology (phones, copiers, computers, pda's, software...) productivity is the amount of output/the amount of input (hours worked) databases are electronic storage files where info is kept. (identity theft) bar codes the Internet ecommerce is the buying and selling of goods over the Internet. (B2C, B2B) 3. The competitive environment offer high quality products, outstanding service, competitive prices (value) customer service (empowerment train frontline people to make decisions) stakeholder recognition 4. The social environment diversity (both customers and employees) demographic changes (45 54 are currently the richest group in the US) family changes (twoincome families and single parents) 5. The global business environment global competition free trade the quality imperative The Evolution of American Business Goods are tangible products such as computers, food, clothing, cars, and appliances. Services are intangible products (products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism. Services make up more than of the US economy. Your future in business may be a part of the new era of an informationbased global revolution that will alter all sectors of the economy: agricultural, industrial, and service. ...
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