3. •Explain the nature of business
•Describe the general types of businesses
•Identify 2 ways a nation measures its
economic growth & prosperity
•Describe the benefits of business ownership
to the nation and to individuals
4. • An organization that produces or distributes a
good or service for profit
Goods= tangible (physical)
Services= intangible
5. • Industrial
– produce goods used by other businesses to make
things
– Ex. Coal mining, farming, crude oil
• Commercial
– Wholesalers & retailers (marketing)
– Finance (banks, investment companies)
– Services ( fitness centers, hotels, medical)
6. What type of business is…
• Lawn-mowing- Service
• Paper mill- Industrial
• Dentist- Service
• Textile (clothing)- Industrial
• Sports Authority- Retail
• McDonald’s- Service
• Dell Computers- Industrial
7. Is a word often used to describe
ALL businesses within a CATEGORY
doing similar work
8.
9. • Business is (constantly changing)
• An is something entirely new
1. Affect the kinds of products/services offered
(example technical athletic clothing)
2. Affect business operations
(Internet and telecommuting)
• What other innovations have benefited you?
10. Challenges When Competing Internationally
• Global Innovation
• Competition
Domestic Goods = made by US firms
Foreign Goods = made by firms in other countries
11. • Making the right decisions about what
products or services to offer customers & how
to produce and deliver them
Efficiency
• Producing quickly, at the lowest cost, while
maintaining quality
12. • Gather customer info
• Study buying habits
• Test new products
• Add new features
• Product guarantees & follow-Up
• TQM (Total Quality Management)
– commitment to excellence
13. Efficiency
• Measured by OUTPUT
– Quantity produced within a given time
Productivity:
• Producing the largest quantity in the least
amount of time
• Achieved through:
1. Specialization of effort
2. Modern technology
3. Reorganization of work (downsizing/empowerment)
14. • Gross Domestic Product
• Measure of nation’s economic wealth
• = total market value of all goods & services
produced in a country in 1 year
• US about $14.58 Trillion
• Not included: Underground transactions not
reported to Federal Gov’t
15. 0
2
4
6
8
10
12
14
Ita
ly
Fr
an
ce
U
K
G
er
m
an
GDP in trillions
y
In
di
a
Ja
pa
n
C
hi
na
EU
U
.S
.
16. Standard of Living is ↑er in productive nations
Investments in Human Capital
17. Franchise:
• Legal agreement
• Small group of investors purchase right to sell a
company’s product/service under company’s name
and trademark
Activity: “FRANCHISE ABC’S”
18. Entrepreneur:
• Someone who starts, manages, & owns a business
Small Business
• Companies operated by 1 or a few individuals
• Make up largest # of businesses in US
• ½ of all employed people work for small businesses
19. What are the risks involved?
Competition from other businesses
Price changes
Style changes
Competition from new products
Changes in economic conditions
20. Agree or Disagree?
“Anyone who starts a business has a
responsibility to the entire community”
A business that fails creates an economic loss
that is shared by others (customers,
employees, suppliers, competitors)
21. • TO CUSTOMERS – best at ↓est price
• TO EMPLOYEES – respected, rights enforced
• TO MANAGEMENT – recognition for abilities
• TO COMPETITORS – fairness
• TO INVESTORS – kept informed, interests considered
• TO PUBLIC – promote general welfare, obey laws
22. What is Intrapreneurship???
An employee who is given funds and freedom to
create a special unit or department within a
company to develop a new product, process,
or service
Notas do Editor
How do commercial businesses support the work of industrial businesses?
Identify products that you consider to be innovations. Explain how they are different from and similar to other new products that you wouldn’t classify as innovationsWhat foreign languages do you know or are you studying? Why? How will this be advantageous applying for jobs in the future?
How much is current GDP ??? Which country has the next highest? China … and European Union (25 countries)
How much is current GDP ??? Which country has the next highest? China … and European Union (25 countries)
65% of US families own the homes they live in
2 Reasons for business growth are - the Strong Desire to individuals to own their own businesses ENTREPRENEURS - the EASE with which a business can be started