1 / 29

1- 1

McGraw-Hill/Irwin Understanding Business, 8e. © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh. *. *. Managing Within The Dynamic Business Environment: Taking Risks and Making Profits. *. CHAPTER. 1. *. *. 1- 1. Learning goals.

rafer
Télécharger la présentation

1- 1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh * * Managing Within The Dynamic Business Environment: Taking Risks and Making Profits * CHAPTER 1 * * 1-1

  2. Learning goals • Describe the relationship of business’s profit to risk assumption and discuss how business and nonprofit organizations add to the standard of living and quality of life for all. • Explain the importance of entrepreneurship to the wealth of an economy. • Examine how the economic environment and taxes affect businesses. • Illustrate how the technological environment has affected businesses. • Identify various ways in which businesses can meet and beat competition. • Demonstrate how the social environment has changed and tell what the reaction of the business community has been. • Analyze what businesses must do to meet the global challenge, which includes war and terrorism. • Review how trends from the past are being repeated in the present and what such trends will mean for tomorrow’s college graduate.

  3. Business & Entrepreneurship • Business • Profit • Entrepreneur • Match Risk With Profit • Revenue • Loss • Standard of Living/Quality of Life • Stakeholders • Nonprofit Organizations

  4. Objectives of Business Survival Social Responsibility Profit Growth

  5. Creating Wealth:Factors of Production • Land • Labor • Capital • Entrepreneurship • Knowledge

  6. Business Environment

  7. Economic &Legal Environment • Minimum taxes and regulations • Freedom of ownership • Contract laws • Tradable currency • Elimination/minimization of corruption

  8. Least Corrupt Iceland Finland New Zealand Most Corrupt Bangladesh Chad Haiti Corrupt Countries Source: Transparency International, 2005; www.transparency.org

  9. Technological Environment • Productivity • E-Commerce • Responsiveness to Customer

  10. Identity Theft • Total number of identity theft victims in 2005 – 255,565 • Top four ways how victims information was misused: • Credit card fraud • Phone/utilities fraud • Bank fraud • Employment-related fraud Source: Identity Theft: Victim Complaint Data, 2005, Federal Trade Commission; www.consumer.gov/idtheft

  11. ID Theft—Protective Steps • “Focus on the cheap and easy way to keep an eye on your accounts” • Free Credit Reports • Guard Your Number • Shred • Bug Congress • To pass ultimate protection: A credit freeze anytime you want one. Source: Money, August 2005

  12. Competitive Environment • Customer Expectations • Restructure/Empower

  13. Consumer Trends • U.S. Bottled Water Sales in Past 15 Years Increased more than four-fold to $9.8 Billion • From October 2004 to September 2005, top bottle water flavors were: Blend, Lemon, Lime, and Apple Source: Business & Economic Review, Jan.-Mar. 2002; Beverage Marketing Corporation, bottledwater.org, 2004 stats; Productscan Online; datamonitor.com, November 9, 2005

  14. Social Environment • Diversity/Multicultural • Aging/Graying of America • Two-Income Families • Single-Parent Families

  15. U.S. Household Size Source: U.S. Census Bureau

  16. Buying Power ofDiverse Groups • Women $3,700 Billion • African Americans 761 Billion • Hispanic Americans 686 Billion • Gay Men & Lesbians 610 Billion • Asian Americans 397 Billion • Native Americans 51 Billion Sources: National Organization on Disability Employability; U.S. Pan Asian American Chamber of Commerce; DiversityInc.com; U.S. Census Bureau; The Augusta Chronicle, October 22, 2005; Selig Center for Economic Growth, 2005.

  17. Age • Language • Religion • SexualOrientation 21st CenturyDiversity Issues • Race • Gender • Ethnicity • Disability Source: U.S. Equal Employment Opportunity Commission

  18. Immigration • In 2005, roughly 35 million immigrants lived in the U.S. as compared to less than 25 million 10 years ago. • According to a November 2005 poll, 60 percent of Americans favor a barrier built along the US-Mexico Border. • About 49 percent believe that a child born to an illegal alien in the U.S. should be granted a US citizenship Source: Center for Immigration Studies; RasmussenReports.com

  19. Older Americans Working Source: USA Today

  20. Americans Living Longer • U.S. life expectancy rises to a record high 77.9 years • The number of deaths dropped by 50,000 in 2004 from 2003, the steepest decline since 1938 • By 2005, about one in eight Americans will be 65 or older. By 2025, it will be nearly one in five. Source: Investor’s Business Daily, December 8, 2003; Cumberland Times-News, April 20, 2006; U.S. Centers for Disease Control and Prevention; U.S. Census

  21. Exurbs: Growth of Outer Suburbs • Northeasterners are moving south and west, and west coast residents are moving inland. • The states that gained the most residents: Florida, Arizona, Nevada • The states that lost the most residents: New York, California, Illinois Source: Cumberland Times-News, April 21, 2006; U.S. Census Bureau

  22. Global Environment • International Competition and Free Trade • Improvements in Transportation and Communication • War & Terrorism • Global Changes

  23. The EconomicCost of Disaster DisasterCosts Hurricane Katrina – 2005 (estimate)$ 200 B Kobe, Japan Earthquake -- 1995 100 B September 11, 2001 Attacks 70 B Northridge, CA Earthquake – 1994 44 B Hurricane Andrew – 1992 35 B Source: Business 2.0 , November 2002; MSNBC.com, September 10, 2005.

  24. Does Global ExperienceHelp Your Career? NoResponse 5% 19% 56% Unnecessary Very Helpful Somewhat 20% Source: USA Today

  25. Evolution ofAmerican Business • Agricultural/Manufacturing • Service Industries • Future???

  26. Trends in Business • Rise of Information & Communication Technology • Globalization • Doing Business 24/7 • Educated Consumers • Aging Workforce • Increasing Diversity • Pyramid vs. Web • Self-Directed, Empowered Employees • Communication Skills • Decision-Making Skills • Teamwork • Leadership • Continual Learning Source: Keying In- Newsletter of the National Business Education Association, March 2003

  27. Leveraging Diverse Workforce • According to the Society for Human Resources’ survey, about 70 percent of the respondents actively leverage workforce diversity through: • Ensuring leadership development programs reach all employees (40%) • Meeting the needs of diverse customers (39%) • Integrating diversity into the organization’s business strategy (35%) • Increasing innovation by tapping employees of all backgrounds (34%) Source: SHRM Weekly Survey, August 3, 2004

  28. Skill Level Required 58% Average Skill Level: 3.6 40% 2% Level 2 Level 4 Level 5 Level 6 Level 3 Level 1 Source: Hudson Institute as reported in Arnold Packer, “Retooling the American Worker,” Washington Post

  29. Current Skill Level 70.5% Average Skill Level: 2.6 16.1% 6.6% 6.8% Level 1 Level 2 Level 3 Level 4 Level 5 Level 6

More Related