Business Essentials, 7th Edition EbertGriffin文档.pptVIP

L E A R N I N G O B J E C T I V E S (cont’d) After reading this chapter, you should be able to: Identify the elements of private enterprise and explain the various degrees of competition in the U.S. economic system. Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system. The Concept of Business and Profit Business An organization that provides goods or services that are then sold to earn profits. Profits The difference between a business’s revenues and its expenses. The rewards owners get for risking their money and time. Consumer Choice and Demand The freedom of consumers to choose how to satisfy their wants and needs. The freedom of business owners to decide how to meet those wants and needs. Opportunity and Enterprise Success in business requires spotting a promising opportunity and then developing a good plan for capitalizing on it. The Concept of Business and Profit (cont.) The Benefits of Business Provision of goods and services Employment of workers Innovation and opportunities Increased quality of life and standard of living Enhanced personal incomes of owners and stockholders Tax payments support government Support for charities and community leadership The External Environments of Business External Environment Everything outside an organization’s boundaries that might affect it The domestic business environment The global business environment The technological environment The political-legal environment The sociocultural environment The economic environment The External Environments of Business (cont.) Domestic Business Environment The environment in which a firm conducts its operations and derives its revenues by: Seeking to be close to its customers Establishing strong relationships with its suppliers Distinguishing itself from its competitors The External Environments of Business (cont.) Global Business Environment The international forces that affect a business: