Foundations of Business
What is ''Business''?
A business is any organization that provides goods or services to satisfy customers’ needs and wants for a profit.
Who is an ''entrepreneur''?
An entrepreneur is an individual who starts a business and risks losses for profits.
Who are the major organizational stakeholders?
Major organizational stakeholders are owners (shareholder/stockholders), customers, employees, investors, suppliers and communities .
What makes the competition desirable for businesses?
Innovation,Customer Service and Education make the competition desirable for businesses.
What are the Types of Businesses?
Local Business
Regional Business
National Business
International or Multinational Business
What must business owners and managers take into consideration when making business decisions?
Business owners and managers must take into consideration current (and future) economic conditions when making business decisions.
What does technology include used in business?
Technology includes work methods, techniques and knowledge used in a
business.
What is ''Productivity''?
Productivity is a measure of the amount of output generated given the amount of input.
What are the major forces of the environment?
There are six major forces of the environment:
the economic environment, the technological environment, the legal and
political environment, the social environment, and the global environment.
What is the dimension of the Market Environment?
Market Environment:
Domestic business environment where firms operate.
What do factors of production describe?
Factors of production describes various resources used to produce goods and
services.
What are the Factors of Production?
Natural and Physical Resources,
Labor,
Financial Capital,
Entrepreneurship,
Informations
Resources
What does Natural and Physical Resources include?
• Land
• Offices
• Computers
What is ''Crowdfunding''?
Crowdfunding is to raise capital for a new business venture from a large number of individuals who often contribute small amounts of capital.
What is an economic system?
An economic system is a country’s organized way for allocation of its resources
among its citizens.
What are the Major Economic Systems?
Planned Economic Systems
Free-Market Systems
Mixed Market Systems
Governments are expected to encourage economic development in responsible ways. This includes stimulating and stabilizing the economy generally through two sets of policies.What are they?
Fiscal and monetary
What is a small business?
A small business is independently owned and operated and not dominant in its field of operation.
Who are ''Intrapreneurs''?
Intrapreneurs are employees working in large companies who behave like
entrepreneurs.
Entrepreneurs are very important to the market economies.What are their roles in the market economies?
They start new businesses, accept the risks, create jobs, and contribute to innovation
What are the elements of a business plan?
Introduction
Executive Summary
Company Description
Product/Service
Marketing Plan
Operating Plan
Management and Organization
Financing
What is a strategic alliance?
A strategic alliance is an agreement between two or more companies to pursue
common goals such as project development of new products, while still remaining independent organizations.
What is Ethics?
Ethics is a system of moral principles (what is right and wrong) that governs a person’s behavior.
What are five sources of ethical standards to help us make good ethical decisions as suggested by the Markkula Center for Applied Ethics:70?
• The Utilitarian Approach - an ethical
behavior that delivers the most good or does
the least harm for all who are affected by it.
• The Fairness or Justice Approach – an
ethical behavior that treats people equally
or fairly.
• The Common Good Approach – an ethical
behavior that is based on the benefit of all
in a community and welfare of everyone.
• The Virtue Approach – an ethical behavior
that is consistent with desirable values like
honesty, courage, generosity, tolerance,
fairness and integrity.
• The Rights Approach – an ethical behavior
that respects the rights of those affected
such as the right to choose freely one’s own
choice.
What do Business or corporate ethics involve?
Business or corporate ethics involve ethical or unethical behaviors by employees in a business environment.
Firms can concentrate on three CSR strategies.What are they?
Operations-driven, compliance-driven, and customer-driven:
What are the potential advantages to firms can be seen in several areas?
• Create new business or market opportunities
• Increase a company’s social standing, social capital, brand reputation and brand awareness
• Improve a company’s environmental impact and operational efficiency
• Increase employees’ motivation
• Reduce operating costs
• Protect important resources that a company depends on.