BMGT Textbook notes.txt

  1. Business
    all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.
  2. Profits
    represent rewards for businesspeople who take the risks involved in blending people, technology, and information to create and market want-satisfying goods and services.
  3. 4 Factors of Production -(four basic inputs for effective operation:
    1) Natural resources – include all production inputs that are useful in their natural states, including agricultural land, building sites, forests and mineral deposits 2) Human Resources – include anyone who works and encompasses both the physical labor and the intellectual inputs contributed by workers. 3) Capital - Four types of Capital – Technology, Tools, Information and Physical Facilities 4) Entrepreneurship – the willingness to take risks to create and operate a business
  4. Entrepreneur
    person who seeks a profit in the private enterprise system. A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business
  5. Private enterprise system
    economic system that rewards firms for their ability to identify and serve the needs and demands of customers. alternative name for capitalism.
  6. Competition.
    the battle among businesses for consumer acceptance
  7. Basic Rights in the Private enterprise system - The right to private property, is the most basic freedom under the private enterprise system.
    Other rights are competition, freedom of choice, and profits
    The right to private property, is the most basic freedom under the private enterprise system. Other rights are competition, freedom of choice, and profits
  8. US business history is divided into 6 distinct time periods:
    1) the Colonial period – Primary Agricultural – prior to 1776 2) Industrial Revolution – Mass production by semiskilled workers, aided by machines – 1760 – 1850 3) Industrial entrepreneurs – Advances in technology and increased demand for manufactured goods, leading to enormous entrepreneurial opportunities – Late 1800’s 4) Production – Emphasis on producing more goods faster, leading to production innovations such as assembly lines – Through the 1920’s 5) Marketing – Consumer orientation, seeking to understand and satisfy needs and preferences of customer groups – Since 1950’s 6) Relationship – Benefits derived from deep, ongoing links with individual customers, employees, suppliers, and other businesses – Began in 1990’s
  9. Transaction management
    the approach that focuses on concentration on building and promoting products in the hope that enough customers will buy them to cover costs and earn acceptable profits
  10. Relationship management
    the collection of activities that build and maintain ongoing , mutually beneficial ties with customers and other parties.
  11. Brand
    name, term, sign, symbol, design, or some combination that identifies the products on one firm and differentiates them from competitors’ offerings.
  12. Partnership
    an affiliation of two or more companies that help each other achieve common goals. One such form of partnership between organizations is a strategic alliance, a partnership formed to create a competitive advantage for the businesses involved.
  13. Outsourcing
    using outside vendors to produce goods or fulfill services and functions that were previously handled in house or in country.
  14. Offshoring
    Offshoring is the relocation of business processes to lower-cost location overseas, this can include both production and services.
  15. Nearshoring
    outsourcing production or services to locations near a firm’s home base.
  16. Diversity
    blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities, can enhance a firm’s chances of success.
  17. Vision
    the ability to perceive marketplace needs and what an organization must do to satisfy them.
  18. Critical thinking
    the ability to analyze and assess information to pinpoint problems or opportunities.
  19. Creativity .
    the capacity to develop novel solutions to perceived organizational problems
  20. Business ethics
    refers to the standards of conduct and moral values involving decisions made in the work environment.
  21. Social responsibility
    - a management philosophy that includes contributing resources to the community, preserving the natural environment, and developing or participating in nonprofit programs designed to promote the well-being of the general public.
  22. Why is a company admired
    solid profits, stable growth, a safe & challenging work environment, high-quality goods and services, and business ethics and social responsibility
Card Set
BMGT Textbook notes.txt
BMGT Textbook Chapter 1