Business Trends: Cultivating a Business in Diverse, Global Environments
One – Taking Risks and Making Profits within the Dynamic Business Environment
OBJECTIVES:
Sammy Hagar
This popular rock star built on his music success and branched out into a variety of pursuits, earning him recognition as well as significant success as a businessman. As stated in Hagar’s bio, “The business environment is constantly changing”, followed by changing opportunities. Keep this example in mind as you review this initial chapter.
As we learn about business, we’ll focus on what businesses provide: goods, jobs, and services to others.
You’ll learn about factors of production, the impact of technology on the workforce, the business stakeholders.
For businesses, their profit equals the funds available after expenses and salaries are paid, provided efficiencies, which means producing items using the least amount of resources.
The incredible growth of entrepreneurs and the accompanying advantages and disadvantages are presented. Are you interested in joining this trend? When considering one’s standard of living, an increase in the cost of goods such as escalating gasoline prices is most likely to reduce this standard.
An increase in the cost of some goods such as escalating gasoline prices is most likely to reduce one’s standard of living.
The entertainment industry is where high-paying service-sector jobs can be found.
It’s important to note that nonprofit organizations are required to learn the business skills of information management, marketing, or financial management.
We’ conclude with an overview of economic development in the U.S.
Two – Understanding Economics and How it Affects Business
OBJECTIVES:
Matt Flannery
This successful businessman has focused on the critical and risk-oriented world of lending, specifically micro lending. His company, Org, engages in the innovative approach known as crowd funding. Flannery took an indirect route to his present endeavor, including attempting to start several companies with no success. What’s also interesting is that his background does not include financing or non-profit experiences, suggesting that a less-than typical route to success often results in success.
Economics, while seen as a complex and hard to understand area can be defined in practical terms, as well as distinguishing between the two branches of economics.
Free markets are key to making economics work, including the role that capitalism plays in this mix.
Socialism and communism as economic factors are important This all leads to a better understanding economic indicators and the phases of the business cycle.
For example, the CPI [consumer price index] measures inflation and deflation; includes energy and food as part of the market basket of goods and services.
In developing nations of the world, population has not leveled off and is expected to increase dramatically in the future. The economic system under which the country operates determines the way in which a country’s resources are utilized to produce goods and services.
For example, in a free-market economic system, if consumers perceive the price for a state of the art cell phone is too high for the value received, they are likely to avoid buying it. In the same light: if the consumer’s desired price is too low, producers may limit the amount produced.
In the enactment of fiscal policy, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation. Increasing taxes has the effect of drawing money away from the private sector.
America’s business success is largely due to an economic and social climate that allows businesses to operate freely. At present, we are undergoing an assessment of regulations impacting businesses.
A contemporary economic challenge is creating profitable businesses by selling goods and services that contribute toward a healthier environment.
Three – Doing Business in Foreign Markets
OBJECTIVES:
Lelia Janah
Leila created Samasource that helps under employed workers through a company called “microwork”: “helping young men and woman in developing countries earn extra income in order to rise out of poverty.” Her approach takes a contrary approach, selecting candidates focusing on the skills they lack. (Emphasis added.) Leila is a primary example of what’s called “emerging global businessperson. She also deals with what been called the “dynamic environment of global business.”
The question of “why should we trade with other nations” is raised. For example, global trade includes the exchange of art, sports, and cultural events. In addition, over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.
Importing is the buying of products from another country. Free trade results in a mutually beneficial exchange between and among nations. This raises the question of trade protectionism as well as the theory of competitive advantage.
It’s important to note that China has dethroned Germany as the world’s largest exporter.
Outsourcing results in the shift of jobs to foreign countries, as well as questionable safety and quality issues with finished products.
Our present political climate has focused on the critical role played by trade with other nations. This points up the tenuous nature of trade agreements and the role they play on economic stability. As a country, we are presently reviewing our trade policies, and how they impact our overall economic health.
