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Business Basics
Better Business
Solomon (Contributing Editor)
Poatsy Martin
What is a Business?
Businesses
Entities that offer products to their customers to earn a
profit
Profit
When a companys revenue (money that it earns) is
greater than its expenses (money it has to pay out for
things/services etc)
More often than not, profit is the driving force behind a
businesss growth.
less
Costs
Costs
equals
Profit
Profit
Labour
Entrepreneurial talent
Natural resources
Capital
Real capital
Financial capital
5. Technology
6. Intellectual property
1-7
11
15
Globalisation
Globalisation - A movement toward a more
interconnected and interdependent world economy
Economies are merging as technology, goods and
services, labour and capital move back and forth across
international borders
Multinational enterprises are among the leaders of
globalisation
Companies such as Nike, McDonalds, and Coca Cola
have operations around the globe.
Globalisation: Offshoring
Technological Changes
Challenges of technological changes
Demands on time and capital
Changes to business operations
Benefits of technological changes
Streamline businesses and reduce
business costs
Improve
productivity,
security,
transparency and communications
Telecommuting,
teleconferencing
and others
Technological Changes
Telecommuting and Teleconferencing
Technology is making it possible for employees to
telecommute, or work from a location away from the
office.
Teleconferencing is keeping CEOs and other corporate
representatives from having to travel for meetings. It is
also allowing companies to communicate easily.
If IT is the tool that is changing the function of business,
the Internet is the tool that is changing the scope.
Although IT by itself would be extremely influential for
the business world, the Internet makes it truly
revolutionary.
Technological Changes
E-Commerce
Three forms of e-commerce
Business to consumer (B2C)
Businesses sell products/services to consumers
Business to business (B2B)
Businesses sell products/services to other businesses
Consumer to consumer (C2C)
Consumers sell products or services to other
consumers via a third party (e.g. online platform)
With the growth in e-commerce, businesses have the
responsibility to take measures to protect consumers
online security and privacy.
E-Commerce
Chapter Summary
1. What is profit, and what is the difference between a
good and a service?
2. How do for-profit businesses and not-for-profit
organizations compare?
3. What are the factors of production?
4. How do competition, the social environment,
globalization, and technological growth challenge and
provide opportunities to business owners?
5. What are the four types of businesses?
6. How do life skills translate to the business
environment?