Yonetim Bilisim Sistemleri Ders Notları - Mgmt - 101 Chapter - 1

The Nature of Business

What is a business?

Individuals or organizations trying to earn a profit by providing products that satisfy people's needs.

What is a product?

A good or service with tangible and intangible characteristics that provide satisfaction and benefits.

The Primary Goal of Business

Earn a Profit

The difference between what it costs to make and sell a product and what a customer pays for it

PROFIT --
The reward for the risks that businesses take in providing products.

Non-Profit Organizations

Not all organizations are businesses.

Nonprofit organizations provide goods and services.

 Maintaining Profitability

Management skills
Planning
Organizing
Controlling
Leading


Marketing Expertise
Products
Price
Promotion
Distribution

Stakeholders  the Environment

Customers, employees, investors, government regulators, community and society.  Those that have a stake in the success and outcomes of a business are considered stakeholders.

Environmentally Friendly Practices

•Hewlett-Packard

•Home Depot

•U-Haul

The People  Activities of Business

Management – Focus on employees

•Coordinating employee’s actions

•Organizing people for efficiency

•Motivating employees toward business goals

Management – Production and Manufacturing

•Plan activities

•Organize staff

•Control tasks  

Marketing – Focus on satisfying customers

•Provide goods to meet customer needs

•Determine what goods customers want

•Plan and develop products

•Determine price

•Determine place

Marketing  Promotion

•Advertising

•Personal selling

•Sales promotion

•Publicity

Finance – Primary responsibility of owners

•Obtaining money

•Using money effectively

•Accountants, stockbrokers, bankers

 

The Economic Foundations of Business

Distribution of resources for the production of goods and services within a social system.

Resources --

•Natural resources (land, forests, minerals,
water)

•Human resources (labor)

•Financial resources (capital)

Economic Systems

Central issue of economics –

•How to fulfill an unlimited demand for goods and services with a limited supply of resources

Three Important questions –

1.What types and quantities of goods/services will
satisfy consumer needs?

2.How will goods/services be produced? By whom?
With what resources?

3.How are goods/services distributed to
consumers?

Communism

A society in which the people without regard to class, own all the nation’s resources.

Socialism

System in which the government owns and operates basic industries but individuals own most businesses.

Capitalism

Free Enterprise – individuals own and operate majority of businesses providing goods and services

Free Market -- All economic decisions made without government intervention (pure capitalism)

Government intervenes and regulates business to some extent (modified capitalism)

Mixed Economies: No country practices pure capitalism or pure socialism/communism. Economic systems contain various elements of government intervention

Supply  Demand

Demand -- number of goods/services consumers buy at given price at a specific time

Supply -- number of products businesses will sell at different prices at a specific time

Measuring the Economy

•Gross Domestic Product (GDP)

•Deficit/Surplus