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1 What is Business?
| Date post: | 18-Jul-2015 |
| Category: |
Business |
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What is Business?
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Business Objectives
Public Welfare Profit Motive Social Responsibility Economic Development
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Walmart vs Kroger Case
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Kroger vs Walmart Case
Raising funds through stocks Right mix of product Right price for profit generation Rev – Cost = Profit
How Walmart is challenging Kroger Customer’s selling their stocks Good Quality at Lower price
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Kroger vs Walmart Case
Kroger’s Strategy Use of IT & decrease operating Costs Wider Selection of Products New & attractive stores
Future Outcomes Retaining stockholders?
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Chapter 1 What is Business?
1. Differentiate the three meanings of business as commerce, occupation and organization and identify the four main kinds of productive resources.
2. Understand the forces of supply and demand determine fair or market price.
3. Appreciate how a company’s business model is the source of its competitive advantage and the difference between profit and profitability
4. Recognize the way specialization and the division of labor through the “invisible had of the market” lead to increasing profit and wealth.
5. List the reasons why business organizations are created to structure business exchanges and facilitate business commerce.
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Chapter 1 What is Business?
Definitions of Business
Business has three dimensions of a meaning
As commerce An occupation An organization
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Chapter 1 What is Business?
Definitions of Business Business as a commerce is the process that people
produce, exchange and trade goods and services
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Chapter 1 What is Business?
Definitions of Business Business as an occupation is the acquired set of
specialized skills and abilities that allows people to create valuable goods and services
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Chapter 1 What is Business?
Definitions of Business Business as an organization is the system of task
and authority relationship that coordinates and controls the interactions between people so that they work toward a common goal
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Chapter 1 What is Business?
Definitions of Business Business as a system is a combination of business
commerce, occupations, and organizations that produces and distributes the goods and services that create value for people in a society
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Chapter 1 What is Business?
Factors of Production Regardless of meaning there are four crucial
ingredients or productive factors or resources of land, labor, capital and enterprise that are needed to profit from business
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Chapter 1 What is Business?
Factors of Production These four productive factors or resources of land,
labor, capital and enterprise that are needed to profit from business and are limited in supply (scarcity)
A company must use them efficiently and effectively to produce goods and services
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Chapter 1 What is Business?
Together, the cost of acquiring and using these four resources to make and sell goods and services determines a company’s operating costs
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Chapter 1 What is Business?
Owners/managers are the enterprise of the business, while the people are the labor and the capital buys materials, machinery
The land may provide a specific location or a URL in cyberspace.
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Chapter 1 What is Business?
These resources allow for the creation of a product and/or service that customers value a price
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Chapter 1
What is Business?
The company’s business model not only outlines the plan for these resources but creates a competitive advantage in the value of its product and generates profitable sales revenue
By reinvesting the profits the business increases its capital and contributes to the wealth of the owners
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Chapter 1 What is Business?
All business activity is self-interested and competitive, and this competition may benefit people and society when it leads resources to be employed in their most profitable use
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Blockbuster Video Chain
How Blockbuster differentiated itself? Display and spacious Use of technology (Barcode & Scanner) Results
70,000 to 80,000 $ revenue 20,000 to 30,000 $ operating costs One of the 100 fastest growing business in
Fortune 500 Largest video store in world with 5000 locations
