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, CHAPTER 1
THE CHANGING FACE OF BUSINESS
CHAPTER LEARNING OBJECTIVES
LO 1.1 Distinguish between business and not-for-profit organizations.
Business consists of all profit‐seeking activities that provide goods and services necessary to an
economic system. Not‐for‐profit organizations are business‐like establishments whose primary
objectives involve social, political, governmental, educational, or similar functions instead of
profits.
LO 1.2 Identify and describe the factors of production.
The factors of production have four basic inputs: natural resources, capital, human resources,
and entrepreneurship. Natural resources include all productive inputs that are useful in their
natural states. Capital includes technology, tools, information, and physical facilities. Human
resources include anyone who works for the firm. Entrepreneurship is the willingness to take
risks to create and operate a business.
LO 1.3 Describe the private enterprise system, including basic rights and
entrepreneurship.
The private enterprise system is an economic system that rewards firms for being able to
perceive and serve the needs and demands of consumers. Competition in the private enterprise
system means success for firms that satisfy consumer demands. Citizens in a private enterprise
economy enjoy rights to private property, profits, freedom of choice, and competition.
Entrepreneurship drives economic growth.
LO 1.4 Identify the seven eras in the history of business.
The seven historical eras are the colonial period, the Industrial Revolution, the age of industrial
entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In
the colonial period, businesses were small and rural, emphasizing agricultural production. The
Industrial Revolution brought factories and mass production to business. The age of industrial
entrepreneurs built on the Industrial Revolution through an expansion in the number and size of
firms. The production era focused on the growth of factory operations through assembly lines
and other efficient internal processes. During and following the Great Depression, businesses
concentrated on find-ing markets for their products through advertising and selling, giving rise to
the marketing era. In the relationship era, businesspeople focus on developing and sustaining
long‐term relationships with customers and other businesses. The social era of business can be
described as a new approach to the way businesses and individuals interact, connect,
communicate, share, and exchange information with each other in virtual communities and
networks around the world. Technology promotes innovation and communication, while
alliances create a competitive advantage through partnerships. Concern for the environment
also helps build strong relationships with customers.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, The Changing Face of Business 1-2
LO 1.5 Explain how today’s business workforce and the nature of work itself are
changing.
The workforce is changing in several significant ways: (1) It is aging and the labour pool is
shrinking and (2) it is becoming increasingly diverse. The nature of work has shifted toward
services and a focus on information. More firms now rely on outsourcing, offshoring, and
nearshoring to produce goods or to fulfill services and functions that were previously handled in‐
house or in‐country. Today’s workplaces are also becoming increasingly flexible, allowing
employees to work from different locations and through different relationships. Companies
promote innovation through teamwork and collaboration
LO 1.6 Identify the skills and attributes managers need to lead businesses in the twenty-
first century.
Today’s managers need vision, which is the ability to perceive both marketplace needs and the
way their firm can satisfy those needs. Critical thinking skills and creativity allow managers to
pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing
with rapid change, and they need skills to help lead their organizations through shifts in external
and internal conditions.
LO 1.7 Outline the characteristics that make a company admired by the business
community.
A company is usually admired for its solid profits, stable growth, a safe and challenging work
environment, high‐quality goods and services, and business ethics and social responsibility.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
Canadian Boone
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, CHAPTER 1
THE CHANGING FACE OF BUSINESS
CHAPTER LEARNING OBJECTIVES
LO 1.1 Distinguish between business and not-for-profit organizations.
Business consists of all profit‐seeking activities that provide goods and services necessary to an
economic system. Not‐for‐profit organizations are business‐like establishments whose primary
objectives involve social, political, governmental, educational, or similar functions instead of
profits.
LO 1.2 Identify and describe the factors of production.
The factors of production have four basic inputs: natural resources, capital, human resources,
and entrepreneurship. Natural resources include all productive inputs that are useful in their
natural states. Capital includes technology, tools, information, and physical facilities. Human
resources include anyone who works for the firm. Entrepreneurship is the willingness to take
risks to create and operate a business.
LO 1.3 Describe the private enterprise system, including basic rights and
entrepreneurship.
The private enterprise system is an economic system that rewards firms for being able to
perceive and serve the needs and demands of consumers. Competition in the private enterprise
system means success for firms that satisfy consumer demands. Citizens in a private enterprise
economy enjoy rights to private property, profits, freedom of choice, and competition.
Entrepreneurship drives economic growth.
LO 1.4 Identify the seven eras in the history of business.
The seven historical eras are the colonial period, the Industrial Revolution, the age of industrial
entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In
the colonial period, businesses were small and rural, emphasizing agricultural production. The
Industrial Revolution brought factories and mass production to business. The age of industrial
entrepreneurs built on the Industrial Revolution through an expansion in the number and size of
firms. The production era focused on the growth of factory operations through assembly lines
and other efficient internal processes. During and following the Great Depression, businesses
concentrated on find-ing markets for their products through advertising and selling, giving rise to
the marketing era. In the relationship era, businesspeople focus on developing and sustaining
long‐term relationships with customers and other businesses. The social era of business can be
described as a new approach to the way businesses and individuals interact, connect,
communicate, share, and exchange information with each other in virtual communities and
networks around the world. Technology promotes innovation and communication, while
alliances create a competitive advantage through partnerships. Concern for the environment
also helps build strong relationships with customers.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
, The Changing Face of Business 1-2
LO 1.5 Explain how today’s business workforce and the nature of work itself are
changing.
The workforce is changing in several significant ways: (1) It is aging and the labour pool is
shrinking and (2) it is becoming increasingly diverse. The nature of work has shifted toward
services and a focus on information. More firms now rely on outsourcing, offshoring, and
nearshoring to produce goods or to fulfill services and functions that were previously handled in‐
house or in‐country. Today’s workplaces are also becoming increasingly flexible, allowing
employees to work from different locations and through different relationships. Companies
promote innovation through teamwork and collaboration
LO 1.6 Identify the skills and attributes managers need to lead businesses in the twenty-
first century.
Today’s managers need vision, which is the ability to perceive both marketplace needs and the
way their firm can satisfy those needs. Critical thinking skills and creativity allow managers to
pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing
with rapid change, and they need skills to help lead their organizations through shifts in external
and internal conditions.
LO 1.7 Outline the characteristics that make a company admired by the business
community.
A company is usually admired for its solid profits, stable growth, a safe and challenging work
environment, high‐quality goods and services, and business ethics and social responsibility.
Copyright © 2020 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
