Discussion Topic 1
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Chapter1.pptxThe Changing Face of Business http://www.wileybusinessupdates.com
Chapter
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Define the term business.
Identify and describe the factors of production.
Describe the private enterprise system.
Identify the six eras in the history of business.
Explain how today’s business workforce and the nature of work itself is changing.
Identify the skills and attributes needed for the 21st century manager.
Outline the characteristics that make a company admired .
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Learning Objectives
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Profit-seeking activities and enterprises provide goods and services necessary to an economic system.
Profit is the reward earned by business people who take the risk involved in blending people, technology, and information to create and market want-satisfying goods and services.
What is Business?
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Not-for-profit organizations are business-like establishments that have primary objectives other than profits.
Although they place public service over profit making, they still need money to achieve their goals
These organizations are a major part of the U.S. economy
Not-For-Profit Organizations
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Factors of Production
Natural Resources
Capital
Human Resources
Entrepreneurship
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Capitalism
Adam Smith is the father of capitalism.
“Invisible Hand”
Economic system determines business ownership, profits, and resources
Rewards firms for their ability to serve the needs of consumers
Minimized government intervention
Competition is the battle among businesses for consumer acceptance.
The Private Enterprise System
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Basic Rights in a Private Enterprise System
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Six Eras in the History of U.S. Business
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Relationship Era
Firms seek ways to build long-term customer loyalty by carefully managing every interaction
Based on connections between: business and customers; employers and employees; technology and manufacturing; and separate companies
Managing Relationships through Connections
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Dedicated workers who can foster strong ties with customers
Capable of high-quality production
Able to compete in global markets
Technically savvy
Today’s Business Workforce
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By 2025, the number of U.S. workers 65 or older will reach 64 million.
Many baby boomers are hitting the peak of their careers, while Generations X and Y are launching their careers.
Technology has intensified the hiring challenge by requiring workers to have ever more advanced skills.
Changes in the Workforce:
Aging Population
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Economists predict the U.S. labor pool could soon fall short by as many as 10 million people.
The two fastest-growing ethnic populations in the United States are Hispanics and people of Asian origin.
Employee teams with individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities are more effective.
Changes in the Workforce:
Shrinking Labor Pool/Diversity
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Outsourcing is using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.
Offshoring is the relocation of business processes to lower-cost locations overseas.
Onshoring is returning production to its original manufacturing location because of changes in costs or process
Changes in the Workforce:
Outsourcing
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Younger workers are looking to something other than work-comes-first
Telecommuting and job-sharing
Part-time and temporary workers are growing
Collaboration is replacing working alone
Value risk-taking and innovation
Changes in the Workforce: Flexibility and
Innovation through Collaboration
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Critical-thinking
Creativity
Ability to lead change
Vision
The 21st-Century Manager
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Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities.
Creativity is the capacity to develop novel solutions to perceived organizational problems.
Critical Thinking and Creativity
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Guide employees and organizations through changes
Managers must be comfortable with tough decisions.
Factors that require organizational change can come from external and internal sources.
Ability to Lead Change
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Solid profits
Stable growth
Safe and challenging work environment
High-quality goods and services
Business ethics and social responsibility
What Makes a Company Admired?
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New Technologies
Population Shifts
Emerging nations
Shrinking Global Barriers
Trade, communication, transportation
The Future of Business
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