NICKELS M

C
HUGH M
C
HUGH
The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
SIFE
HARTNELL/
SIFE


Enroll NOW in:
BUS39.005 Students in Free Enterprise
Mondays 1:00-1:50 + hours by arrangment
Sec. 5153 3 units
A 2 Unit class is available through Dan Bequette
C-208 Phone:755-6744

SCANS COMPETENCIES
DEPARTMENT OF LABOR
Secretaries Commission on
Acquiring Necessary Skills
RESOURCES
Identifies, organizes, plans and allocates
resources
Time
Money
Material and Facilities
Human Resources
INTERPERSONAL
WORKS WITH OTHERS
Contributes to group effort
Teaches others
Serves Clients/Customers
Exercises Leadership
Negotiates
Works with diversity
INFORMATION
Aquires and Uses Information
Aquires and Evaluates Information
Organizes and Maintains Information
Interprets and Communicates Information
Uses Computers to Process Information
SYSTEMS
Understands Complex Inter-relationships
Understands Systems
social
organizational
technical
Monitors and Corrects Performance
Improves or Designs Systems
TECHNOLOGY
Selects Technology
Chooses Procedures, tools or equipment
Applies Technology to Task
Maintains and Troubleshoots Equipment
Prevents, Identifies, or solves problems with
equipment
6
Projected Required Average
Skill by 2000
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
58 %
40 %
2%
Projected
average skill
level: 3.6
SOURCE: Hudson Institute as reported in Arnold Packer, Retooling the American Worker,
The Washington Post
1-3
7
Current Skill Level
6.8 %
70.5 %
16.1 %
6.6 %
Average current
skill level: 2.6
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
1-4
SIFES SLOGAN
TEACH ME AND I WILL
FORGET
SHOW ME AND I MIGHT
REMEMBER
INVOLVE ME AND I WILL
UNDERSTAND.
SIFES LEARANING
PHILOSOPHY
To provide college students the best
opportunity to make a difference and
develop leadership, teamwork. and
communication skills through learning,
practicing the principles of FREE
ENTERPRISE
SIFE
Business Defined

The production and distribution

of goods and services

to satisfy the needs and wants of
the
consumer

hopefully, at a profit
Chapter
One
Meeting the Challenge of
Todays Dynamic
Business Environment
What Is Business?
Activity seeking profit
Provides goods/services
Satisfy standard of living-
quality of life
Nonprofit
organizations
Objectives of Business
Survival
Growth
Social
Responsibility
Profit
Business Environment
(Figure 1.2)
Entrepreneurship
vs.
Employment
Opportunities For Entrepreneurs
Matching Risk With Profit
Revenue - Expense = Profit(Loss)
Risk

Factors of Production
Land
Labor
Capital
Entrepreneurship
Knowledge
Government Affects
Business By Being:
A Customer

An Overseer and
Regulator

A Tax Collector
Environments of Business
Economic
Technological
Social
Competitive
Global
Economic Environment
$ Freedom of ownership
$ Contract laws
$ Elimination of corruption
$ Tradable currency
$ Minimum taxes & regulation
Technological Environment
Internet
E-commerce
Role of Intermediaries ?
Responsiveness to
Customer
Information Management
A Business and Its Stakeholders
(Figure 1.4 )
Average Skill
LevelRequired
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Source: Hudson Institute as reported in Arnold Packer, Retooling the American Worker, Washington Post
Average Skill
Level: 3.6
2%
58%
40%
Current Skill Level
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Average Skill
Level: 2.6
6.8%
70.5%
6.6%
16.1%
The 21
st
Century Workforce
Outsourced
Suppliers
25%
Permanent
Employees
35%
Contract
Workers
15%
Contingent
Workers
25%
Source: Workforce Magazine, Jan. 1998
Changing Intermediaries
Internet Impact
Communications
Access
No Borders
E-commerce Explosion
Transaction costs

Size of purchase
per transaction

Integration
Flexibility

Catalog size

Customer
Interaction
Competitive Environment
Customer Service
Customer Demands
Speed

Community/Stakeholder Needs

Natural/Ecological Concern
Social Environment
Diversity/Multicultural
Aging/Graying of America
Two Income Families
Single Parent Families
U.S. Population Shifts
72%
12%
12%
4%
1%
62%
18%
13%
6%
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1999 2025
White
Hispanic
Afro-Amer.
Asian
Amer. Indian
Source: Census Bureau
Global Environment
Quality

Productivity

Changes
Dealing With A
Multicultural Workforce
Show Respect for Culture/Value of
Others
Avoid Stereotyping
Include All Workers in Acculturalization
Be Empathetic But Be Yourself
Avoid Imposing Your Culture/Values on
Others
World Population Milestones
0
1
2
3
4
5
6
7
8
9
Billions of
People
1804 1927 1960 1974 1987 1999 2013 2028 2054
Source:USA Today
Evolution of
American Business
Agricultural/Manufacturing

Service Industries

Future???
Key Terms
Business 4
Downsizing 5
Entrepreneur 4
Factors of production 9
Goods 24
Loss 7
Non profit organization 5
Profit 4
Quality 19
Quality of life 4

Revenue 7
Risk 7
Services 25
Standard of living 4