Welcome to BMT!Introduction to Business, Marketing,

and Technology

The Nature of Business

Activity: In your notebook draw a picture of a BusinessWhat does it look like?

Learning Targets

•Explain the nature of business•Describe the general types of businesses•Identify 2 ways a nation measures its economic growth & prosperity•Describe the benefits of business ownership to the nation and to individuals

• An organization that produces or distributes a good or service for profit

Goods= tangible (physical)Services= intangible

Business Defined

Types of Business• Industrial– produce goods used by other businesses to make

things– Ex. Coal mining, farming, crude oil

• Commercial – Wholesalers & retailers (marketing)– Finance (banks, investment companies)– Services ( fitness centers, hotels, medical)

What type of business is…

• Lawn-mowing-• Paper mill- • Dentist- • Textile (clothing)-• Sports Authority-• McDonald’s- • Dell Computers-

ServiceIndustrialServiceIndustrial RetailServiceIndustrial

“INDUSTRY” Is a word often used to describe ALL businesses within a CATEGORY doing similar work

Education

PublishingAutomotive

Telecommunication

Insurance

Healthcare

Sporting Goods Finance

Hospitality/Tourism

Why are service businesses growing faster than other types of

business in the U.S?

Innovation & Business• Business is (constantly changing)

• An is something entirely new1. Affect the kinds of products/services offered

(example technical athletic clothing)

2. Affect business operations (Internet and telecommuting)

• What other innovations have benefited you?

DYNAMIC

Innovation

Global CompetitionChallenges When Competing Internationally• Global Innovation• Competition

Domestic Goods = made by US firms

Foreign Goods = made by firms in other countries

• Making the right decisions about what products or services to offer customers & how to produce and deliver them

• Producing quickly, at the lowest cost, while maintaining quality

Focusing on the Right ThingsEffectiveness

Efficiency

• Gather customer info• Study buying habits• Test new products• Add new features• Product guarantees & follow-Up• TQM (Total Quality Management)

– commitment to excellence

Effectiveness

• Measured by OUTPUT– Quantity produced within a given time

Productivity: • Producing the largest quantity in the least

amount of time • Achieved through:

1. Specialization of effort2. Modern technology3. Reorganization of work (downsizing/empowerment)

Efficiency

• Gross Domestic Product• Measure of nation’s economic wealth• = total market value of all goods & services

produced in a country in 1 year • US about $14.58 Trillion • Not included: Underground transactions not

reported to Federal Gov’t

The Contributions of Business

GDP

GDP

0

2

4

6

8

10

12

14GDP in trillions

Standard of Living is ↑er in productive nationsInvestments in Human Capital

The Contributions of Business

Individual Well-Being

Franchise:• Legal agreement • Small group of investors purchase right to sell a

company’s product/service under company’s name and trademark

Activity: “FRANCHISE ABC’S”

The Contributions of Business

Business Ownership continued…

Entrepreneur:• Someone who starts, manages, & owns a business

Small Business• Companies operated by 1 or a few individuals• Make up largest # of businesses in US • ½ of all employed people work for small businesses

The Contributions of Business

Business Ownership

What are the risks involved?Competition from other businessesPrice changesStyle changesCompetition from new productsChanges in economic conditions

Ownership - Risks

Agree or Disagree?“Anyone who starts a business has a

responsibility to the entire community”

A business that fails creates an economic loss that is shared by others (customers, employees, suppliers, competitors)

Ownership - Obligations

• TO CUSTOMERS – best at ↓est price

• TO EMPLOYEES – respected, rights enforced

• TO MANAGEMENT – recognition for abilities

• TO COMPETITORS – fairness

• TO INVESTORS – kept informed, interests considered

• TO PUBLIC – promote general welfare, obey laws

Responsibilities of Business Owners:

What is Intrapreneurship???

An employee who is given funds and freedom to create a special unit or department within a company to develop a new product, process, or service