文档介绍：CHAPTER ONE Managing Within the Dynamic Business Environment
Managing Within the Dynamic Business Environment
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Understanding Canadian Business, 7th Cdn Edition
Learning Objectives
Describe the relationship of business profit to risk assumption1>.
Discuss the importance of stakeholders and non-anizations to business activities.
Explain how entrepreneurship is critical to the wealth of an economy, and list the five factors of production that contribute to wealth.
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Understanding Canadian Business, 7th Cdn Edition
Learning Objectives cont.
4. Review the six elements that make up the business environment and explain why the business environment is important anizations.
5. Understand how the service sector has replaced manufacturing as the principal provider of jobs, but why manufacturing remains vital to Canada.
Understanding Canadian Business, 7th Cdn Edition
Business and Entrepreneurship
Business: an activity that seeks to provide goods and services to others while earning a a profit.
Entrepreneur: a person who risks time and money to start and manage a business.
Matching Risk With Profit
Revenue: total amount of money taken in, in a period by selling goods and services.
Profit: the amount of money a business earns in revenue above and beyond what it spends on salaries and other expenses.
Loss: occurs when a business’ expenses are more than its revenues.
Revenues – Expenses = Net Profit (Loss)
Risk: the chances an entrepreneur takes of losing time and money on a business that may not be profitable.
Business Stakeholders
Stakeholders are the people who may gain or lose as a result of the policies and activities of a business. These include:
Customers
Employees
Financial institutions (banks, credit unions)
Investors (stockholders)
Environmentalists
Governments
Suppliers
Dealers (retailers)
munity
Business Stakeholders (cont)
Business: petitive
Offshoring: Sourcing part of the purchased inputs outside of