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