Chapter 1

Chapter 1 - Chapter 1 O bj1 0 Business: What’s It All...

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Unformatted text preview: Chapter 1 O bj1 0 Business: What’s It All About? Purpose and Organization of a Business Add Value Make a Profit For-Profit L e a r n i n g O b j e c ti v e 1 Creating Value Organizations (1) add value by (2) converting resources to (3) develop and provide the goods and services that (4) customers desire . Purpose of a Business Helping People/Animals Not-For-Profit Simple Business Model Capital (financing) Property, Plant, Equipment Raw Materials Labor (Human Resources) Inventory Goods & Services R&D Product Service O R Value-added conversion Inputs Outputs Simple Model of a Business “The Firm” INPUTS Value added: Conversion processes OUTPUTS Capital (financing) Property, Plant, Equipment Raw Materials Labor Inventory Goods & Services R&D Marketing Delivery of Product or Service Collect cash AMP Processes SC Processes Types of High-Level Business ● Acquisition/ Maintenance /Payment Processes - (AMP) - acquire, maintain, and pay for resources needed (e.g. labor, finance, fixed assets, raw materials, supplies and services) to provide goods and services. ● Conversion Processes - adding value ; converting the resources into goods and services for customers. ● Sales/Collection Processes (SC) – marketing, delivering goods and services to customers, and collecting payment. Business Processes and Related ACQUISITION/ PAYMENT Acquire, maintain, and pay for resources needed by the organization. CONVERSION Convert acquired resource into goods and/or services. SALES / COLLECTIONS Sell and deliver goods and/or services to customers and collect payments. What is a process? A process is group of related business activities /events intended to accomplish the strategic objectives of the enterprise Business activity (often used synonymous with business event ): an activity performed by the business, e.g., “take customer order” ( Hint: Each activity should contain at least a verb and a noun ) Business Process: SC Business Processes and Activities Place TV ad Take customer order Collect payment Ship goods Nature of Business Operations Service companies: Ø Provide services for customers Ø Financial Services deal in services related to...
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This note was uploaded on 04/13/2010 for the course BUS 207 taught by Professor Perello during the Spring '03 term at Cal Poly.

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Chapter 1 - Chapter 1 O bj1 0 Business: What’s It All...

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