Taking Risks & Making Profits in the
Dynamic Business Environment
Profit & Loss, Risk & Return
How are these related?
The higher the risk, usually the higher the
possible return (profit).
Your profits may be higher or your losses
may be greater
Why Bother to Motivate? Just tell them
what to do and fire them if they dont
Advantages of a highly motivated
Are You Stressed?
Developing and Pricing Goods
In deciding what to buy and whom to buy it from,
consumers perform cost/benefit analyses
You cant just come up with one group of
products or menu items or destinations one time
What are Finance and Financial
Finance: The function in a business that acquires funds for
a rm and manages them within the rm.!
Finance activities include:"
- Preparing budgets"
- Creating cash
Production and Operations
Knowing customer needs and satisfying
them are two different things.
Sector Transformation in the 20th
workforce (>10 years old)
Using Effective Promotions
The Traditional Promotion Mix
Steps in a promotional campaign
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate the plan
and Financial Information
Who Uses Accounting
Type of Report
Government tax authority
Government regulatory agencies
People interested in an
Using Securities Markets for
Financing and Investing
The Basics: Securities Markets
Securities markets are
financial marketplaces for
stocks and bonds and serve
two primary functions:
1. Assist businesses in finding longterm funding to finance
accept as payment for
goods and services.
Standards for Useful Money
The MONEY SUPPLY
Money Supply - The amount of money the Feder
Entrepreneurship and Starting a
Entrepreneurial Ventures = RISK!
So why are there so many entrepreneurs?
Not Everyone is Suited to be an
Be a self starter -who is also wi
How to Form a Business
Ease of starting and
ending the business
Being your own boss
Pride of ownership
Leaving a legacy
Understanding How Economics
What is Economics?
How do economies as a whole work?
How do individuals make buying decisions?
The Concerns of Macro Economics
Why are some countries rich and othe
Management and Leadership
The process used to accomplish
organizational goals through planning,
organizing, leading, and controlling people
and other organizational resources.
Younger and more
- Growing n
Adapting Organizations to
The Basic of Structuring your
Organization = Organizational Design
Figure out what your business will be
Figure out what will need to be done and
divide it into tasks
Assign workers by specialization
A shortage of trained workers in key areas"
Changes in employee attitudes about work"
A declining economy with fewer full-time jobs"
Expanding global markets"
Increasing benet demands a
Helping Buyers Buy
What is Marketing?
The activity, set of institutions and
processes for creating, communicating,
delivering, and exchanging offerings
with value for customers, clients,
partners, and society at large.
How has the M
Organizations that assist in moving goods and
services from businesses to businesses (B2B)
and from businesses to consumers (B2C).!
Distribution accounts for 75
cents out of every food dollar.
Doing Business in
Why Go Global?
6.8 Billion potential customers in 194 Countries
To acquire resources not available at home or for
lower prices (Resources)
To obtain new technology and to increase
Demanding Ethical & Socially
What are ethics?
What is an ethical dilemma?
What is the basic difference between laws
Basic questions to ask when facing an
1. Is my proposed action leg
Enter your UCI user name
Type the word replay in the
search box and hit the browse
This page appears and
Click the UCI ONLY Directory
Open the spring 2011 fold