Summary BP notes

As a factor of production, the term capital includes: tools, machinery, and buildings. The technology environment would include studies of information technology. Age, race, gender, religion, etc. are items included in the study of demographics. A business should try to adapt to the factors in the environment. In Tom Jeffries roofing proposal he describes materials to be used and aprice. When the customer signs the bid it becomes an enforceable contract – Economic & Legal Force Snap for Seniors – Eve is an entrepreneur who started a business to serve the growing number of older americans. Snap for seniors lists housing providers and matches the elderly to needs with facilities – Social force Walmart – In china, Walmart has nearly doubled in size and made in china stickers are visible all over Walmart stores in the U.S. – Global Force Borders Booksellers struggled for years and eventually declared bankruptsy as consumers increasingly turned to downloaded books from the internet rather than buying hard copies – Technological Force When the Blackberry phone system quit working it affected 70 million customers. Those customers turned to other cell phones which offered the reliable service business customers demand at a lower price – Competitive force In order to start a business, a certain level of risk is associated. But businesses affect every aspect of our society. Business affects the high standard of living in the united states and provides us with a high quality of life. Business must deal with various factors, including technology and competition. The founders of the company IContact decided to take the associated risk in starting a business and have addressed many of the factors facing a business. The business environment includes the economic environment, the technological environment, the competitive environment, the social environment, and the global business environment. On top of the five 5 elements of the business environment each business uses one or more of the five factors of production. On top of these aspects, businesses today are faced with more globalism than ever before. 5 elements of the business environment: - Economic - Technological - Competitive - Social - Global business People like Ryan and Aaron of IContact, who risk time and money to start and manage a business are called entrepreneurs. Although Icontact now enjoys revenue of $10 million and expects that figure to double in the next year, it is not yet profitable. In order for icontact to make a profit, its revenues must exceed its expenses. Aaron and Ryan’s business was able to thrive in American because of political freedom, natural environment, education, health care, leisure time, safety, and other benefits. In other words they were able to thrive because of america’s high quality of life. Aaron mentioned that Icontact considers the needs of the community and the environment. Members of the community and environmentalists are considered some of Icontacts stakeholders. The ability to start and grow icontact was primarily based on the existence of the internet. The internet is considered a key part of the technological environment. 5 factors of production: - Land - Labor - Capital - Entrepreneurship - Knowledge Icontact is committed to dealing sensitively to workers and customers from a wide variety of backgrounds and cultures. This is known as managing diversity. Thomas lennon, actor, producer, and screenwriter discusses his road to success, the risks of starting a business, making profits, and working for others. Having achieved much success in his own career, lennon offers advice for those looking to make it in Hollywood. Entrepreneurs positively impact the business climate through the availability of goods and services to others in exchange for a profit. The business environment includes the economic, technological, legal, social, global and competitive environments. Every business begins with an entrepreneur. In order for entrepreneurs to be successful in the dynamic business environment, a certain level of risk must be undertaken. Through risk, entrepreneurs and businesses affect the high standard of living and quality of life in the united states while providing opportunities for making profits in global markets. Business is defined as any activity that seeks to provide goods and services to others with the goal of earning a profit. Tom lennon is in the business of providing entertainment for many audiences. Tom is self-employed and therefore, is considered to be an entrepreneur. As an entrepreneur, tom also works for other people. What benefit do entrepreneurs receive by working for others? Security of employment Much like Tom, entrepreneurs may experience a high degree of flexibility and opportunity. However, entrepreneurs are challenged by the demands of the business environment. Which of the following is NOT one of the five elements of the