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Unformatted text preview: 1-1 Part I: Business in a Global EnvironmentCHAPTER 1BUSINESS: 2005 AND BEYONDChapter Summary: Key ConceptsWhat Is Business?:BusinessAll profit seeking activities and enterprises that provide products and services needed or desired in an economic system.Not--for-profitEstablishments that have primary objectives other than organizationsreturning profits to their owners. Included are all government agencies as well as private-sector non-profits like trade organizations, charitable and religious organizations, and private educational institutions.Factors of productionThe inputs to operational effectiveness include a combination of natural resources, human resources, capital and entrepreneurship.Private enterprise systemCapitalismCapitalism is another name for the Private Enterprise System. Capitalism minimizes government interference in economic activity and rewards businesses for their ability to perceive and serve the needs of customers.Basic rights in the There are four basic rights. The first and most fundamentalprivate enterprise systemis the right to private property: the right to own, use, buy, sell, and bequeath most forms of tangible and intangible property. The second is the business owners right to after tax profit. The third is the freedom of choice in employment, purchases, and investment. The fourth basic right is the right to fair competition: allowing the public to set rules for competitive activity.1-1 Part I: Business in a Global Environment1-2 Part I: Business in a Global EnvironmentThe entrepreneurshipEntrepreneurs are risk takers who recognize marketplacealternativeopportunities and use their skill and capital to seize and profit from those opportunities. The spirit of entrepreneurship drives the fast pace of new business creation in America. It also contributes to innovative behavior in large organizations.Six Eras in the History of BusinessThe colonial periodPrior to 1776, our economy was rural and agricultural, and relied on England for manufactured items and for the financing needed to develop.Industrial revolutionBetween 1760 and 1850, the industrial revolution saw mass production by semiskilled workers, aided by machines.The age of the industrialThe 1880s was an era of industrial entrepreneurship.entrepreneurAdvances in technology and increased demand for manufactured goods led to enormous entrepreneurial opportunities.The production eraBetween 1900 and the 1920s the focus was on producing more goods faster. Every effort was made to meet growing demand leading to production innovations like the assembly line.The marketing eraDuring the 1950s marketing grew to mean much more then selling. Since ability to produce was not enough, businesses began to focus on producing just what customers wanted. That is, customer orientation became the center of business thinking....
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This note was uploaded on 10/28/2011 for the course ECONOMICS 105 taught by Professor Ak during the Spring '11 term at Punjab Engineering College.
- Spring '11