Intro%20to%20Business%20notes[1]

Intro%20to%20Business%20notes[1] - Intro to Business...

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Unformatted text preview: Intro to Business Professor Reaves (973)525-8818 January 21, 2011 Chapter 1- The Changing Face of Business (The frame work of contemporary business) 1. What is Business? (a) Profit-seeking - activities and enterprise provide goods and services necessary to an economic system. (b) Profit- is the reward for business people who take the risk involved to offer goods and services to customers. (c) Non-profit- works only enough to sustain but not to generate profit or revenue. (i) Example- U.S. Postal Service (ii) 1.5 million non-profit organizations, generated $1 t rillion in the U.S. economy 2. Factors of Production (a) Natural Resources- came from the earth, are not manmade, therefore they cannot be replenished. (i) Example- Oil (b) Capital- money, machinery, infrastructure (c) Human resources- physical labor (d) Entrepreneurship- taking chances, trying and starting something new, self employed 3. The private enterprise system (a) Capitalism (i) Doesnt want the government involved with private business (ii) So called father of private enterprise Adam Smith (b) Economic system determines business ownership, and its profits and resources (c) Rewards firms or companies for their ability to serve the needs of their customers. (d) Allows room for competition that benefits consumers (i) Example- Apple sells the iphone product. When they are the only creator they create a monopoly. People are forced to buy their product for they only have one choice. However, when goggle created the android, consumers are given two separate options. The two companies then compete with one another. They try to offer their products at a more affordable price and with better features than their competitors. Without competition consumers are stuck with only one technological choice and are forced to pay one fixed price. (e) minimizes government intervention (f) Basic rights in the private enterprise (i) Buy, own, sell (ii) Property and competition 4. Entrepreneurship (Alternative) (a) A risk take (b) Fuels the U.S. economy (c) One out of 7 small business are accredited to 1 out of 5 jobs (d) Provides job innovations (e) Adaptable- they change with the demands and conditions of the environment (i) Franchisees- however cannot make changes as easily, because they are owned by corporations. 5. 6 Eras of the history of the U.S. business 1) Colonial Mainly agricultural, like farming 2) Industrial Revolutions Semi-skilled workers using raw materials 3) Industrial Entrepreneurs Start of the specialization of labor Examples- Cornelius Vanderbilt rail road industries J.P. Morgan- banking Andrew Carnegie steel 4) Production Era Producing products quickly Specialization in skills Examples- Henry Ford- assembly line 5) Marketing Focus groups Customer based Producing products based on the interests of the consumer 6) Relationships Customer and manufacturer work together to a achieve a common goal Both are friends January 26, 2011...
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Intro%20to%20Business%20notes[1] - Intro to Business...

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