bua 101 business environment
DESCRIPTION
businessTRANSCRIPT
![Page 1: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/1.jpg)
The Business Environment
HollowayBUA-101/EMCC
![Page 2: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/2.jpg)
GOODS and SERVICES
• Goods -- Tangible products such as computers, food, clothing, cars and appliances.
• Services -- Intangible products (that can’t be held in your hand) like education, healthcare, insurance, recreation and travel.
• Successfully filling a market need means you could make money for yourself and provide jobs for others.
Entrepreneurship and
Wealth Building
1-2
Terms you need to know…
![Page 3: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/3.jpg)
BUSINESS and ENTREPRENEURSHIP
Entrepreneurship and
Wealth Building
• Business -- Any activity that seeks to provide goods and services to others while operating at a profit.
• Entrepreneur -- A person who risks time and money to start and manage a business.
• Success in business is often based on the strategy of finding a need and filling it.
1-3
Terms you need to know…
![Page 4: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/4.jpg)
REVENUE, PROFIT AND LOSS
Revenues, Profits
and Losses
• Revenue -- The total amount of money a business takes in during a given period by selling goods and services.
• Profit -- The amount of money a business earns above and beyond what it spends for salaries and other expenses.
• Loss -- Occurs when a business’s expenses are more than its revenues.
1-4
Terms you need to know…
![Page 5: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/5.jpg)
RISK
Matching Risk with Profit
• Risk -- The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
• Not all businesses make the same amount of profit.
• Businesses take risks, but with great risks could come great profit.
1-5
Terms you need to know…
![Page 6: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/6.jpg)
What about Taxes?
![Page 7: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/7.jpg)
HOW is TAX MONEY USED?
Businesses Add to the Standard of Living and Quality
of Life
Taxes are used to provide:•Hospitals•Schools•Libraries•Playgrounds•Roads•Fire Protection•Police Protection•Environmental Programs•Support for People in Need
1-7
What the heck are taxes for?
Taxes: Are they Good or Bad???
![Page 8: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/8.jpg)
STAKEHOLDERS
Responding to the Various Business
Stakeholders
• Stakeholders -- All the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address.
• Who are Stakeholders?- Customers- Employees- Stockholders- Suppliers- Dealers
- Community Members- Media- Elected Officials- Bankers- Environmentalists
1-8
![Page 9: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/9.jpg)
![Page 10: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/10.jpg)
THE UPS and DOWNS of ENTREPRENEURSHIP
Entrepreneurship Versus Working for
Others
The UPS
The freedom to succeed.
Make your own decisions.
High possibility of wealth.
Hire your own staff.
The DOWNS
The freedom to fail.
No paid vacations.
No health insurance.
No daycare.
1-10
![Page 11: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/11.jpg)
WHO TAKES the ENTREPRENEURIAL CHALLENGE?
Opportunities for Entrepreneurs
• Millions of people have started businesses and succeeded.
• The number of Hispanic-owned businesses in the U.S. has grown dramatically.
• Women now own one-third of all businesses.
1-11
![Page 12: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/12.jpg)
FIVE FACTORS of PRODUCTION
The Importance of Entrepreneurs to the Creation
of Wealth
1. Land
2. Labor
3. Capital
4. Entrepreneurship
5. Knowledge
• Entrepreneurs use what they’ve learned to grow their businesses and increase wealth.
1-12
![Page 13: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/13.jpg)
WHAT is theBUSINESS ENVIRONMENT?
The Business Environment
1-13
![Page 14: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/14.jpg)
Global Environment• Economic and Legal Environment• Technological Environment• Competitive Environment• Social Environment
Pg. 12-19
![Page 15: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/15.jpg)
GOVERNMENT’S ROLE in BUSINESS
The BusinessEnvironment
Government can promote business by…
1.Minimizing spending and keeping taxes and regulations to a minimum.
2.Allowing private ownership of businesses.
3.Minimizing interference with the free exchange of goods and services.
4.Passing laws that enable businesspeople to write enforceable contracts.
5.Establishing a currency that’s tradable in world markets.
6.Minimizing corruption.1-15
![Page 16: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/16.jpg)
IMPORTANT CHANGES to the GLOBAL ENVIRONMENT
The Global Environment
1. Growth of global competition.
2. Increase of free trade among nations.
3. Development of efficient distribution systems.
4. Advances in communication systems.
1-16
![Page 17: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/17.jpg)
INCREASING COSTS of the GLOBAL ENVIRONMENT
The Global Environment
• Wars, like those in Iraq and Afghanistan, cost billions of dollars.
• Tax money is diverted.
• Cost of security goes up.
• Cost of insurance goes up.
LG7
1-17
![Page 18: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/18.jpg)
Critical Thinking• Let’s start a restaurant here in Bangor…
o Who are our stakeholders?o How can we benefit our community (aside from just
providing jobs and tax revenue)?o Who are your suppliers? How will you create good
relationships with them?o Is there any conflict between our desire to be as
profitable as possible and our desire to pay employees a livable wage?
o Which environmental factors may have the biggest impact on our business? How? Why?
![Page 19: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/19.jpg)
Choose a Business… any business!
• Walk in like you own the place… and look around.
• Answer the questions as they regard that business.
• Take a few notes and bring’em to our next meeting.
![Page 20: Bua 101 Business Environment](https://reader036.vdocument.in/reader036/viewer/2022081514/563db823550346aa9a90e1ca/html5/thumbnails/20.jpg)
Thanks!