covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may A company whose costs are greater than revenues shows a loss. 1. According to a survey by The Economist, over the next several years, major art museums will be looking for new directors, as more than a third of the current ones are approaching retirement.4. For satisfying his wants he works and works harder so as to make use of scarce resources available. Introduction; 1.1 The Nature of Business; 1.2 Understanding the Business Environment; 1.3 How Business and Economics Work; 1.4 Macroeconomics: The Big Picture; 1.5 Achieving Macroeconomic Goals; 1.6 Microeconomics: Zeroing in on Businesses and Consumers; 1.7 Competing in a Free Market; 1.8 Trends in the Business Environment and Competition; Key Terms; Summary of Learning Outcomes An economic activity: Business in considered as an economic activity because it is undertaken with the objective of earning money. money. Businesses meet the needs of consumers by providing medical care, autos, and countless other goods and services. Take a moment to think about the many different types of businesses you come into contact with on a typical day. not be reproduced without the prior and express written consent of Rice University. 1 0 obj The Japanese electronics giant, once a leader with its Walkman music player and Trinitron televisions, steadily lost ground—and profits—over the past two decades to other companies by not embracing new technologies such as the digital music format and flat-panel TV screens. John Fischer of Longmont, Colorado, fits the profile. Fischer says only five other companies worldwide have the laser-finishing equipment StickerGiant uses as part of its operations. For example, a not-for-profit organization’s goal might be feeding the poor, preserving the environment, increasing attendance at the ballet, or preventing drunk driving. Businesses play a key role in determining our quality of life by providing jobs and goods and services to society. Conservationists, environmentalists, and government bodies are proposing laws to require land-use planning and resource conservation. © 1999-2020, Rice University. Quality of life refers to the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time. Although several countries, such as Switzerland and Germany, have higher average wages than the United States, their standards of living aren’t higher, because prices are so much higher. By 2016, Sony restructured its business portfolio and has experienced substantial success with its PlayStation 4 gaming console and original gaming content.2, Not all organizations strive to make a profit. To provide goods and services, regardless of whether they operate in the for-profit or not-for-profit sector, organizations require inputs in the form of resources called factors of production. Companies use natural resources in different ways. Successful not-for-profits apply business principles to operate more effectively. With $10 million in annual sales and nearly 40 employees, StickerGiant continues to be a successful endeavor for John Fischer and his employees almost two decades after Fischer created his first sticker. Sometimes natural resources are simply called land, although, as you can see, the term means more than just land. 4.0 and you must attribute OpenStax. For example, some of the costs incurred by Microsoft in developing its software include expenses for salaries, facilities, and advertising. <>/ProcSet[/PDF/Text]/XObject<>>>/Type/Page>> Innovation is also visible in the technology StickerGiant uses to create miles and miles of custom stickers (nearly 800 miles of stickers in 2016). Thus, it is evident that entrepreneurship is equally important for all business and economics. Thus, businesses create the goods and services that are the basis of our standard of living. 1. Other topics discussed at the meeting include customer comments and feedback, employee concerns, and colleague appreciation for one another. As a result of this venture, Fischer started an online retail sticker store, which he viewed as possibly the “Amazon of Stickers.” Designing and making stickers in his basement, Fischer’s start-up would eventually become a multimillion-dollar company, recognized in 2017 by Forbes as one of its top 25 small businesses. endobj Many experts now include knowledge as a fifth factor, acknowledging its key role in business success. 3 0 obj They are attracted by the opportunity to be their own boss and reap the financial rewards of a successful firm. 5 0 obj Want to cite, share, or modify this book? ��g���Dߝ���VЛi@����#�O"��:�^�^�4�9� �_��;�]��Y ��4h�7O��?�|T���O}�F�0��2�������o���O>�a��;hM�!���Az�8u�@�|�p���nzg3�#�s�Yw�-��[1瓇��9{;4���.Of�/�b�d���}�s،'�%. In addition to pursuing a museum’s artistic goals, for example, top executives manage the administrative and business side of the organization: human resources, finance, and legal concerns. Four traditional factors of production are common to all productive activity: natural resources, labor (human resources), capital, and entrepreneurship. The boundaries that formerly separated not-for-profit and for-profit organizations have blurred, leading to a greater exchange of ideas between the sectors. |3 ��V����a/�;0� Q��H�4O��(P�݁:qpE3C����ѢEn�UALAx��`�*h ��(}���4h{r��D�Ku��/��R�A��i�f"�;0�Ep�Rn� u���;H�9�x2�]Ш�I��i � ��4 x3�u�X]�@�k1P�^'� �H# Looking for a Better Way: Improving Production and Operations, Transforming the Factory Floor with Technology, Trends in Production and Operations Management, Creating Products and Pricing Strategies to Meet Customers' Needs, Trends in Developing Products and Pricing, Distributing and Promoting Products and Services, The Nature and Functions of Distribution (Place), Using Supply Chain Management to Increase Efficiency and Customer Satisfaction, Transforming Businesses through Information, Using Financial Information and Accounting, Understanding Money and Financial Institutions, Understanding Financial Management and Securities Markets, The Role of Finance and the Financial Manager, Buying and Selling at Securities Exchanges, Trends in Financial Management and Securities Markets, Developing Interpersonal Skills Is Key to Your Success, Going to College Is an Opportunity of a Lifetime—Never Drop Out, Understanding the Legal and Tax Environment.