Chapter 1: Developing a Business Mindset – Flashcards
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Chapter 1: Developing a Business Mindset
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Business
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any profit-seeking organization that provides goods and services designed to satisfy customers' needs
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Revenue
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Money the company brings in through the sale of goods and services
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Business model
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a clear, simple outline of how the business intends to generate revenue
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Profit
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The amount of money left over after expenses
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Competitive Advantage
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some aspect of a product or company that makes it more appealing to target customers
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Assets
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Anything of meaningful value, from patents and brand names to real estate and company stock
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Not-for profit Organizations
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non profit organizations, such as museums, universities, and charities, do not have a profit motive
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Goods-producing businesses
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businesses that create value by making things
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Service Businesses
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Businesses that create value by performing activities that deliver some benefit to the customer
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Moral Hazard
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it the decision turns out bad
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Capital Intensive
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Goods producing businesses are often this
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Barrier to Entry
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a resource or capability a company must have before it can start competing
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Labor Intensive
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Service businesses tend to be this
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Business Mindset
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A view of business that considers the myriad decisions that must be overcome
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Positive effects of Business
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1. Offers goods and services 2. Provides employment 3. Paying Taxes 4. Contributes Growth, stability, and security
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Negative Effects of Business
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1. Increases Pollution 2. Creates health/ safety risks 3. Disrupts communities 4. Causes Financial instability
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Social Environment
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trends and forces in society at large
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Stakeholders
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Internal/external groups affected by a company's decisions and activities
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Technological Environment
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Forces resulting from the practical application of science to innovations, products, and processes
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Disruptive technologies
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Technology that change the nature of an industry, can be powerful enough to create or destroy entire companies
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Economic Environment
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the conditions and forces that affect the cost and availability of goods, services, and labor and thereby shape the behavior of buyers and sellers
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Market Environment
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A company's target customers, the buying and selling to a specific group
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Research and Development
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functional areas responsible for conceiving and designing new products
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Information Technology
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systems that promote communication and information usage through the company or that allow companies to offer new services to their customers
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Operation Management
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Management of the people and processes involved in creating goods and services
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Professionalism
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The quality of performing at a high level and conducting oneself with purpose and pride
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etiquette
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The expected norms of behavior in any particular situation
