Part 1

Business in a
Global
Environment

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Chapter 1
Business: 2005
and Beyond

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

What is Business?
All profit-seeking activities
and enterprises that provide
goods and services
necessary to an economic
system.
Profitsrewards for
businesspeople who take
the risks involved to offer
goods and services to
customers.

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Not-for-Profit Organizations

Businesslike establishments that have

primary objectives other than returning
profits to their owners.
For example:
The Corporate Angel Network: A Notfor-Profit Organization providing flights to
cancer patients in need

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Factors of Production
Four basic inputs for effective operation:

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

The Private Enterprise System

Economic system that rewards businesses for
their ability to perceive and serve the needs
and demands of customers.
Competitionbattle among businesses
for consumer acceptance

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Basic Rights in the Private

Enterprise System

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

The Entrepreneurship Alternative

Entrepreneurrisk taker in the private
enterprise system.
Many of the Internet companies we know
today got their start as entrepreneur ventures
(and many failed).
HotJobs.com is now a Yahoo company

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Managing Ethics and Social

Responsibility
Business Ethicsconduct and moral values
involving right and wrong actions arising in
the work environment.
Social Responsibilitya management
philosophy that highlights the social and
economic effects of managerial decisions.
Companies enhance their image and
relationship with society by participating in
social responsibility programs

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

What Makes a Company Admired?

Solid profits?
Stable growth?
Safe and challenging work environment?
Commitment to social responsibility?
You decide!

Copyright 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.