NICKELS • MCHUGH • MCHUGH

© 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
SCAN’S 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
 Projected Required Average
Skill by 2000
1-3
58 %
Projected
average skill
level: 3.6 40 %

2%

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6

SOURCE: Hudson Institute as reported in Arnold Packer, ”Retooling the American Worker,”
The Washington Post 6
 Current Skill Level
1-4
70.5 %
Average current
skill level: 2.6

16.1 %

6.8 % 6.6 %

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6

7
 SIFE’S SLOGAN
• TEACH ME AND I WILL
FORGET
• SHOW ME AND I MIGHT
REMEMBER
• INVOLVE ME AND I WILL
UNDERSTAND.
 SIFE’S 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

 Chapter
One

Meeting the Challenge

of Today’s 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

Profit Social
Growth Responsibility
Business Environment
(Figure 1.2)
 Entrepreneurship
vs.
Employment
• Opportunities For Entrepreneurs
• Matching Risk With Profit
– Revenue - Expense = Profit(Loss)
– Risk
Factors of Production
Land Entrepreneurship

Labor

Capital 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
58%
Average Skill
Level: 3.6
40%

2%

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
 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

The 21st Century Workforce

Contract
Workers
15% Permanent
Employees
35%
Contingent
Workers
25%
Outsourced
Suppliers
25%

Source: Workforce Magazine, Jan. 1998

Changing Intermediaries
 Internet Impact
• Communications
• Access
• No Borders
E-commerce Explosion
• Transaction costs • Flexibility

• Size of purchase • Catalog size

per transaction

• Integration • 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
80% 72%
70% 62%
60%
50% White
Hispanic
40%
Afro-Amer.
30% Asian
18%
20% Amer. Indian
12%12% 13%
6%
10% 4% 1% 1%
0%
1999 2025

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
9
8
7
6
Billions of 5
People 4
3
2
1
0
1804 1927 1960 1974 1987 1999 2013 2028 2054

Source:USA Today
 Evolution of
American Business

• Agricultural/Manufacturing

• Service Industries

• Future???
 Key Terms
• Revenue 7
• Business 4
• Risk 7
• Downsizing 5
• Services 25
• Entrepreneur 4
• • Standard of living 4
Factors of production 9
• Goods 24
• Loss 7
• Non profit organization 5
• Profit 4
• Quality 19
• Quality of life 4