Understanding Business Samenvatting
Inhoudsopgave
Week 1.......................................................................................................................................................... 1
Chapter 1: Takings risks and making profits within the dynamic business environment.....................................1
Chapter 6: Entrepreneurship and starting a small business.................................................................................2
Week 2.......................................................................................................................................................... 4
Chapter 5: How to form a business......................................................................................................................4
Chapter 8: Structuring organizations for today’s challenges...............................................................................6
Chapter 15: Distributing products........................................................................................................................9
Week 3........................................................................................................................................................ 11
Chapter 7: Management and leadership...........................................................................................................11
Chapter 11: Human resource management: finding and keeping the best employees.....................................14
Week 4........................................................................................................................................................ 15
Chapter 17: Understanding accounting and financial information...................................................................15
Chapter 18: Financial management...................................................................................................................18
Week 6........................................................................................................................................................ 21
Chapter 14: Developing and pricing goods and services...................................................................................21
Week 1
Chapter 1: Takings risks and making profits within the dynamic business environment
Once you have developed the right goods and services, based on consumer wants and
needs, you need to reach those consumers using whatever media they prefer, including
social media, online advertising, TV and more.
The business environment is constantly changing. What seems like a great opportunity one
day may become a huge failure when the economy changes.
Usually those that take the most risk may make the most profit.
A primary challenge for organizations of the 21st century will be to recognize and respond to
the needs of their stakeholders.
The other side of the outsourcing coin is insourcing. Many foreign companies are setting up
design and production facilities her in the United States.
creates many new US jobs and helps offset those jobs being outsourced
5 factors of production that seemed to contribute to wealth:
1. Land: are used to make homes, cars and other products
, 2. Labor: people have always been an important resource in producing goods and
services, but many people are now being replaced by technology
3. Capital: this includes machines, tools, buildings or whatever else is used in the
production of goods
4. Entrepreneurship: all the resources in the world have little value unless entrepreneurs
are willing to take the risk of starting businesses to use those resources
5. Knowledge: information technology has revolutionizes business, making it possible to
quickly determine wants and needs and to respond with desired goods and services
Peter Drucker said the most important factor of production in our economy is and always will
be knowledge. Entrepreneurs use what they’ve learned (knowledge) to grow their businesses
and increase wealth
5 elements in the business environment:
1. Economic and legal environment
2. Technological environment
3. Competitive environment
4. Social environment
5. Global business environment
Chapter 6: Entrepreneurship and starting a small business
Reasons people are willing to take the entrepreneurial risk:
- Opportunity
- Profit
- Independence
- Challenge
A list of entrepreneurial attributes to look for in yourself:
- Self-directed
- Self-nurturing
- Action-oriented
- Highly energetic
- Tolerant of uncertainty
You may have a business idea that is a good opportunity if:
- It fills customers’ needs
- You have the skills and resources to start a business
- You can sell the product of service at a price customers are willing and able to pay
and still make a profit
- You can get your product or service to customers before your window of opportunity
closes
- You can keep the business going
Work at home has its challenges:
- Getting new customers
- Managing time
, - Keeping work and family tasks separate
- Abiding by city ordinances
- Managing risk
One of the disadvantages of online businesses is that it is easy for copycats to find your
successful products, copy them and sell the imitations on other sites
Since 65% of the nation’s new jobs are in small businesses, there’s a very good change you’ll
either work in a small business someday or start one.
Advantages small businesses: more personal customer service and the ability to respond
quickly to opportunities
How can I learn to run my own business: Here are some hints:
- Learn from others
- Get some experience: the rule of thumb is have 3 years’ experience in a comparable
business first
- Take over a successful firm
One of the major causes of small-business failures is poor management. Functions of
business in a small-business setting:
- Planning your business
- Financing your business
- Knowing your customers (marketing)
- Managing your employees (human resource development)
- Keeping records (accounting)
- Looking for help
Business plan: between 25 and 50 pages long and takes at least 6 months to write
- Cover letter
- Section 1: executive summary; to convince readers not to throw it away
- Section 2: company background
- Section 3: management team
- Section 4: financial plan
- Section 5: capital required
- Section 6: marketing plan
- Section 7: location analysis
- Section 8: manufacturing plan
- Section 9: appendix
An entrepreneur has several potential sources of capital:
- Personal savings
- Family and business associates
- Banks and finance institutions
- Angels, crowdfunding and venture capitalists
o Angel investors are private individuals who invest their own money in
potentially hot new companies before they go public
Inhoudsopgave
Week 1.......................................................................................................................................................... 1
Chapter 1: Takings risks and making profits within the dynamic business environment.....................................1
Chapter 6: Entrepreneurship and starting a small business.................................................................................2
Week 2.......................................................................................................................................................... 4
Chapter 5: How to form a business......................................................................................................................4
Chapter 8: Structuring organizations for today’s challenges...............................................................................6
Chapter 15: Distributing products........................................................................................................................9
Week 3........................................................................................................................................................ 11
Chapter 7: Management and leadership...........................................................................................................11
Chapter 11: Human resource management: finding and keeping the best employees.....................................14
Week 4........................................................................................................................................................ 15
Chapter 17: Understanding accounting and financial information...................................................................15
Chapter 18: Financial management...................................................................................................................18
Week 6........................................................................................................................................................ 21
Chapter 14: Developing and pricing goods and services...................................................................................21
Week 1
Chapter 1: Takings risks and making profits within the dynamic business environment
Once you have developed the right goods and services, based on consumer wants and
needs, you need to reach those consumers using whatever media they prefer, including
social media, online advertising, TV and more.
The business environment is constantly changing. What seems like a great opportunity one
day may become a huge failure when the economy changes.
Usually those that take the most risk may make the most profit.
A primary challenge for organizations of the 21st century will be to recognize and respond to
the needs of their stakeholders.
The other side of the outsourcing coin is insourcing. Many foreign companies are setting up
design and production facilities her in the United States.
creates many new US jobs and helps offset those jobs being outsourced
5 factors of production that seemed to contribute to wealth:
1. Land: are used to make homes, cars and other products
, 2. Labor: people have always been an important resource in producing goods and
services, but many people are now being replaced by technology
3. Capital: this includes machines, tools, buildings or whatever else is used in the
production of goods
4. Entrepreneurship: all the resources in the world have little value unless entrepreneurs
are willing to take the risk of starting businesses to use those resources
5. Knowledge: information technology has revolutionizes business, making it possible to
quickly determine wants and needs and to respond with desired goods and services
Peter Drucker said the most important factor of production in our economy is and always will
be knowledge. Entrepreneurs use what they’ve learned (knowledge) to grow their businesses
and increase wealth
5 elements in the business environment:
1. Economic and legal environment
2. Technological environment
3. Competitive environment
4. Social environment
5. Global business environment
Chapter 6: Entrepreneurship and starting a small business
Reasons people are willing to take the entrepreneurial risk:
- Opportunity
- Profit
- Independence
- Challenge
A list of entrepreneurial attributes to look for in yourself:
- Self-directed
- Self-nurturing
- Action-oriented
- Highly energetic
- Tolerant of uncertainty
You may have a business idea that is a good opportunity if:
- It fills customers’ needs
- You have the skills and resources to start a business
- You can sell the product of service at a price customers are willing and able to pay
and still make a profit
- You can get your product or service to customers before your window of opportunity
closes
- You can keep the business going
Work at home has its challenges:
- Getting new customers
- Managing time
, - Keeping work and family tasks separate
- Abiding by city ordinances
- Managing risk
One of the disadvantages of online businesses is that it is easy for copycats to find your
successful products, copy them and sell the imitations on other sites
Since 65% of the nation’s new jobs are in small businesses, there’s a very good change you’ll
either work in a small business someday or start one.
Advantages small businesses: more personal customer service and the ability to respond
quickly to opportunities
How can I learn to run my own business: Here are some hints:
- Learn from others
- Get some experience: the rule of thumb is have 3 years’ experience in a comparable
business first
- Take over a successful firm
One of the major causes of small-business failures is poor management. Functions of
business in a small-business setting:
- Planning your business
- Financing your business
- Knowing your customers (marketing)
- Managing your employees (human resource development)
- Keeping records (accounting)
- Looking for help
Business plan: between 25 and 50 pages long and takes at least 6 months to write
- Cover letter
- Section 1: executive summary; to convince readers not to throw it away
- Section 2: company background
- Section 3: management team
- Section 4: financial plan
- Section 5: capital required
- Section 6: marketing plan
- Section 7: location analysis
- Section 8: manufacturing plan
- Section 9: appendix
An entrepreneur has several potential sources of capital:
- Personal savings
- Family and business associates
- Banks and finance institutions
- Angels, crowdfunding and venture capitalists
o Angel investors are private individuals who invest their own money in
potentially hot new companies before they go public
