Professional Documents
Culture Documents
Dynamic
Business
Environment:
Taking Risks
and Making
Profits
Engr. Ped Salvador,Ph.D.
Topic 1.1
LEARNING GOALS
1. Describe the relationship between profit and risk, and show how
businesses and nonprofits can raise the standard of living for all.
1-2
Learning Goals
8. Review how past trends are being repeated in the present and
what those trends mean for tomorrow’s new company entrants.
Entrepreneurship
and
Wealth Building GOODS and SERVICES
LG1
1-4
Entrepreneurship
and
Wealth Building
BUSINESS and
LG1 ENTREPRENEURSHIP
1-5
Revenues,
Profits
and Losses REVENUE, PROFIT AND LOSS
LG1
1-6
Businesses Add
to the Standard of
Living and Quality
of Life
HOW is TAX MONEY USED?
LG1
1-7
Businesses Add
to the Standard of
Living and Quality
of Life
STANDARD of LIVING
LG1
1-9
Responding to the
Various Business
Stakeholders
OUTSOURCING
LG1 and INSOURCING
1-10
Using Business
Principles in
Nonprofit
Organizations
NONPROFIT ORGANIZATIONS
LG1
1-11
Using Business
Principles in
Nonprofit
Organizations
SOCIAL ENTREPRENEURS
LG1
1-12
Opportunities for
Entrepreneurs
WHO TAKES the
LG2
ENTREPRENEURIAL CHALLENGE?
1-14
The Importance
of Entrepreneurs
to the Creation
of Wealth
FIVE FACTORS of PRODUCTION
LG2
1. Land
2. Labor
3. Capital
4. Entrepreneurship
5. Knowledge
1-15
The Business
Environment WHAT is the
LG3 BUSINESS ENVIRONMENT?
1-16
The Economic
and Legal
Environment
GOVERNMENT’S ROLE
LG3
in BUSINESS
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.
1-17
The Growth of
E-Commerce
E-COMMERCE
LG4
1-18
Using
Technology to
Be Responsive
DATABASES
LG4 and IDENTITY THEFT
• Database -- An electronic
storage file for information.
1-19
How Technology
Benefits Workers
and You BENEFITS of TECHNOLOGY
LG4
1-21
The Social
Environment
DEMOGRAPHY
LG6
• Demography --
The statistical study
of the population in
terms of size,
density and
characteristics like,
age, race, gender
and income.
1-22
The Social
Environment DEMOGRAPHY of the U.S. by
LG6 AGE
1-23
The Social
Environment PROJECTED DEMOGRAPHY
LG6
of the U.S. by RACE in 2050
1-24
The Social
Environment The RISE of the
LG6
U.S. HISPANIC POPULATION
LARGEST SMALLEST
Hispanic Populations Hispanic Populations
1) New Mexico - 46.3% 50) West Virginia - 1.2%
2) California - 37.6% 49) Maine - 1.3%
2) Texas - 37.6% 48) Vermont - 1.5%
4) Arizona - 29.6% 47) North Dakota - 2.0%
5) Nevada - 26.5% 46) Mississippi - 2.7%
1-25
The Social
Environment
U.S. POPULATION CHANGES
LG6
1-27
The Global
Environment IMPORTANT CHANGES to the
LG7 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.
1-28
The Global
Environment INCREASING COSTS of the
LG7 GLOBAL ENVIRONMENT
1-29
The Ecological
Environment
GLOBAL GREENING
LG7
1-30
GETTING INVOLVED
PERSONALLY
(Thinking Green)
Agriculture Era
Manufacturing Era
Service Era
Information-Based Era
1-32
Progress in the
Agricultural
Industry The AGRICULTURAL ERA
LG8
• As technology
improved
productivity, fewer
workers were
needed in factories.
1-34
Progress in the
Service Industry
The SERVICE ERA
LG8
1-35
Your Future in
Business The INFORMATION
LG8 TECHNOLOGY ERA
• IT affects:
- Agriculture
- Industry
- Service
1-36