Solutions for Business Strategy, Development,
Application, 4th Canadian Edition by Gary
Bissonette
,
,Chapter 1: Understanding and Managing Business Enterprise
Chapter Summary
In this chapter, we have described the nature of business and discussed the ways in which businesses
strive to maintain their viability and relevancy through interacting with the marketplace in ways that
meet the needs, wants, and desires of targeted customers. Our discussion focused on the interaction of
business as a commercial endeavour, guided by employee interaction and supported by organizational
efficiency and structure. This process results in the development of a business system and ultimately a
business model, which together are designed to deliver desired goods and services to the marketplace.
Utilizing productive resources at their disposal (assets, labour, capital, and managerial acumen),
businesses seek to create demand, generate revenue, and drive a profit from the sale of such goods and
services, thereby ensuring their long-term profitability and growth. While striving for profitability,
businesses are being increasingly challenged by customers, and the marketplace at large, to be good
corporate citizens, acknowledging their responsibility to act in a socially acceptable manner and
respecting the finite nature and scarcity of resources. This evolving requirement of businesses is
resulting in a significant emphasis on resource sustainability and environmental initiatives.
emphasizes (at a macro level) the importance of positioning, and developing and communicating a value
proposition to the customer group that a business is trying to attract, in a manner that differentiates the
sustain a competitive advantage in the marketplace. The creation of this value proposition takes into
consideration both tangible and intangible benefits that the product or service offers, and looks to
determine the extent at which price will become a key decision criterion within the purchase
decision. The chapter closes with a discussion associated with the importance and interrelationship
between strategy and tactics and the need for managers to recognize that in order to be successful,
businesses not only have to properly develop a plan for serving the marketplace, but also must be
effective in the implementation of this plan.
Learning Objectives
This chapter is designed to provide students with:
1. A macro-level understanding of what business is
2. An overview of the major components of a business model and how their successful
1-1
, development and execution determines business performance
3. An awareness of the overarching role of the business owner or - management team
4. An understanding of how businesses plan
5. Exposure to the concept of visionary leadership
6. Via a Management Reflection, an overview of the relationship between business strategy and
business model development, and the importance of successfully executing both for a business to
achieve its identified objectives
Advanced Topics to Enhance Learning Applicable Supporting Appendices
The following additional appendices can be added to the delivery of this materials for instructors
interested in offering an advance understanding of a particular subject matter.
Appendix A Analyzing Business Situations (SCQA Method)
Appendix B The Business Model and Profitability
Management Reflection The Business Decision-Making Landscape
Being in business goes beyond simply developing your value proposition and understanding its asset
base and cost structure. It is about being able to understand the macro environment around you; the
resources, capability, and capacity that you possess; and the ability to communicate to the marketplace
the uniqueness and importance of the products/services you offer. At its core base, developing and
managing a business requires its owners/managers to:
create a vision of the opportunity in the marketplace
confirm that the market size of customers is large enough that, once commercialized, the
opportunity can enable the organization to make a profit and sustain this profitability for the
anticipated planning cycle and beyond
confirm that a position within the market is feasible, which will enable the company to
compete in a manner that is superior to its direct competition
confirm that the market situation will stay constant long enough for the business plan to be
developed and executed confirm that the business has the resource base and the capability to
execute the strategy
execute the strategy in an efficient and effective manner, achieving the objectives set forth
within the business plan created
As this process demonstrates (see Figure 1.12), being in business is really a question of developing
strategy and executing tactics across your business model. Strategy is the development of plans and
decisions that will guide the direction of the firm and determine its long-term performance. Strategy
focuses on the vision of the firm and the opportunity it believes exists in the marketplace. It also checks
1-2
Application, 4th Canadian Edition by Gary
Bissonette
,
,Chapter 1: Understanding and Managing Business Enterprise
Chapter Summary
In this chapter, we have described the nature of business and discussed the ways in which businesses
strive to maintain their viability and relevancy through interacting with the marketplace in ways that
meet the needs, wants, and desires of targeted customers. Our discussion focused on the interaction of
business as a commercial endeavour, guided by employee interaction and supported by organizational
efficiency and structure. This process results in the development of a business system and ultimately a
business model, which together are designed to deliver desired goods and services to the marketplace.
Utilizing productive resources at their disposal (assets, labour, capital, and managerial acumen),
businesses seek to create demand, generate revenue, and drive a profit from the sale of such goods and
services, thereby ensuring their long-term profitability and growth. While striving for profitability,
businesses are being increasingly challenged by customers, and the marketplace at large, to be good
corporate citizens, acknowledging their responsibility to act in a socially acceptable manner and
respecting the finite nature and scarcity of resources. This evolving requirement of businesses is
resulting in a significant emphasis on resource sustainability and environmental initiatives.
emphasizes (at a macro level) the importance of positioning, and developing and communicating a value
proposition to the customer group that a business is trying to attract, in a manner that differentiates the
sustain a competitive advantage in the marketplace. The creation of this value proposition takes into
consideration both tangible and intangible benefits that the product or service offers, and looks to
determine the extent at which price will become a key decision criterion within the purchase
decision. The chapter closes with a discussion associated with the importance and interrelationship
between strategy and tactics and the need for managers to recognize that in order to be successful,
businesses not only have to properly develop a plan for serving the marketplace, but also must be
effective in the implementation of this plan.
Learning Objectives
This chapter is designed to provide students with:
1. A macro-level understanding of what business is
2. An overview of the major components of a business model and how their successful
1-1
, development and execution determines business performance
3. An awareness of the overarching role of the business owner or - management team
4. An understanding of how businesses plan
5. Exposure to the concept of visionary leadership
6. Via a Management Reflection, an overview of the relationship between business strategy and
business model development, and the importance of successfully executing both for a business to
achieve its identified objectives
Advanced Topics to Enhance Learning Applicable Supporting Appendices
The following additional appendices can be added to the delivery of this materials for instructors
interested in offering an advance understanding of a particular subject matter.
Appendix A Analyzing Business Situations (SCQA Method)
Appendix B The Business Model and Profitability
Management Reflection The Business Decision-Making Landscape
Being in business goes beyond simply developing your value proposition and understanding its asset
base and cost structure. It is about being able to understand the macro environment around you; the
resources, capability, and capacity that you possess; and the ability to communicate to the marketplace
the uniqueness and importance of the products/services you offer. At its core base, developing and
managing a business requires its owners/managers to:
create a vision of the opportunity in the marketplace
confirm that the market size of customers is large enough that, once commercialized, the
opportunity can enable the organization to make a profit and sustain this profitability for the
anticipated planning cycle and beyond
confirm that a position within the market is feasible, which will enable the company to
compete in a manner that is superior to its direct competition
confirm that the market situation will stay constant long enough for the business plan to be
developed and executed confirm that the business has the resource base and the capability to
execute the strategy
execute the strategy in an efficient and effective manner, achieving the objectives set forth
within the business plan created
As this process demonstrates (see Figure 1.12), being in business is really a question of developing
strategy and executing tactics across your business model. Strategy is the development of plans and
decisions that will guide the direction of the firm and determine its long-term performance. Strategy
focuses on the vision of the firm and the opportunity it believes exists in the marketplace. It also checks
1-2
