{"id":5605,"date":"2016-06-07T16:17:52","date_gmt":"2016-06-07T16:17:52","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=5605"},"modified":"2017-04-18T17:22:30","modified_gmt":"2017-04-18T17:22:30","slug":"getting-down-to-business-2","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/chapter\/getting-down-to-business-2\/","title":{"raw":"Getting Down to Business","rendered":"Getting Down to Business"},"content":{"raw":"
\r\n
\r\n

\"Photo<\/a><\/p>\r\n\r\n

Today's Business Environment<\/h2>\r\n

The world of business today can be summed up in a single word: change. And not just change, but rapid change. in order to remain profitable and competitive, businesses today\u00a0are finding that they need to be more responsive than ever to customer demands. This is not only true of big companies like\u00a0Apple, Nike, and Whole Foods but of smaller businesses, too\u2014like your local hardware or grocery store. The rapidly changing business environment affects them all.<\/p>\r\n

What is the business environment? In some ways it\u00a0resembles\u00a0the natural environment in which we live: It's all around us but not always noticeable. It includes things like technology, competitors (other businesses), advertising, regulations, consumer demands, and money. When these elements\u00a0of the business environment change\u2014in the same way that seasons and weather change\u2014companies\u00a0need to be able to predict, react, and adapt accordingly. Those who fail to do so may find themselves out in the rain or cold and struggling to survive.<\/p>\r\n

Although the environment in which businesses operate is always changing, the accelerated pace of\u00a0change\u00a0presents\u00a0special\u00a0challenges and opportunities for businesses today. To get a sense of this rapid and dramatic change, consider\u00a0\"Photo<\/a>something that's fairly routine for Americans: getting\u00a0a prescription filled. A couple of decades ago, you would have taken a written prescription from your doctor to your local drugstore and presented it to the pharmacist. Then, while waiting for it to be filled, you might\u00a0have leafed through magazines or browsed the store for extra\u00a0items\u2014perhaps shampoo or a greeting card. When your name was called, you probably paid in cash or wrote a check. All such transactions took place during normal business hours\u2014Monday\u2013Friday, 9 am\u20135 pm; larger pharmacies may\u00a0have been\u00a0open for a few hours on Saturday.<\/p>\r\n

What about now? Think about the last time you had a prescription filled. Did you ever even see it? Chances are you went to the doctor, and at the end of your visit she faxed the\u00a0prescription straight to the pharmacy (perhaps a Rite-Aid, Walgreen's, or Duane Reed). A little while later, you may have received a text message notifying you that your prescription was ready. Since it wasn't convenient for you to pick it up during the workday, and because it's a 24-hour pharmacy, you went at night. You pulled up to the drive-through window and paid using Apple Pay or Google Wallet. Afterward you verified that you received points on your customer loyalty card, which means\u00a0savings or cash that can be applied to future purchases. You never set foot inside the store.<\/p>\r\n

Alternatively, you may have gotten your prescription filled online and mailed right to your home by a national discount supplier or maybe\u00a0chosen to pick it up at Walmart or Target when you stopped in to shop for a new garden hose.<\/p>\r\n

You can see from this example that the way companies \"do business\" is very\u00a0different today. Some of these changes are the result of developments in technology, while others are the result of shifting\u00a0consumer demands and trends. Regardless of the particular cause, though, all businesses have to cope with the changing nature and pressures of the business environment.\u00a0A large part of this course will focus on the ways in which they\u00a0do just that.<\/p>\r\n\r\n

Defining Business<\/h2>\r\n
\r\n\r\n[caption id=\"attachment_5614\" align=\"alignright\" width=\"300\"]\"Photo<\/a> Radio Shack: Going out of business[\/caption]\r\n\r\n<\/div>\r\n

So, what is this thing we call \u201cbusiness\u201d?\u00a0<\/span>A\u00a0business<\/strong><\/span> is any activity that provides goods or services to consumers for the purpose of making a profit. Examples of\u00a0goods<\/strong>\u00a0provided by a business are tangible items such as cars, televisions, or soda. A\u00a0service<\/strong> is a consumable, one-time benefit. Services include things such as haircuts, hotel stays, or roller-coaster rides.\u00a0Business can generate profits from the sale of goods and\/or services, and profits\u00a0are\u00a0the financial reward that comes from taking the risk of running or owning a business. More specifically, profit<\/strong> is the amount of\u00a0revenue\u00a0<\/strong>or\u00a0income that a business owner retains after paying all the\u00a0expenses associated with the operation of the business. If the expenses of the business exceed the revenue or income generated from operations, then the business will suffer a loss<\/strong>. Businesses that suffer extraordinary losses during\u00a0a short period of time, or slowly see their profits decline, may end up closing\u00a0or filing for bankruptcy.<\/strong><\/span><\/p>\r\n

Clearly the goal of most businesses is to generate a profit by increasing revenue while holding expenses in check, and one of the chief ways they do\u00a0this is by providing\u00a0their customers with value. When businesses talk about\u00a0value<\/strong>, they are referring to the relationship between the price a customer pays for the good or service and the perceived benefits the customer receives in exchange for his or her time and money. Value has become such a key component of today's\u00a0business model that if you go to almost any fast-food restaurant you'll find\u00a0a \"value meal\" or \"value menu\" advertised. Such businesses are sending the message to\u00a0their customers that they'll\u00a0receive the most \"bang for the buck\" or the highest value in terms of quantity obtained in exchange for money spent. It's a business model based\u00a0on the belief\u00a0that if you give your customers value, the profit will follow. As you'll see in the next section, while all businesses seek to increase their revenue, what a business actually does\u00a0with those funds\u00a0can vary and depends on whether it's a for-profit or nonprofit organization. \u00a0<\/span><\/p>\r\n\r\n

Check Your Understanding<\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered above. This short quiz does not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/2958\r\n\r\n<\/div>\r\n<\/div>\r\n
<\/section>","rendered":"
\n
\n

\"Photo<\/a><\/p>\n

Today’s Business Environment<\/h2>\n

The world of business today can be summed up in a single word: change. And not just change, but rapid change. in order to remain profitable and competitive, businesses today\u00a0are finding that they need to be more responsive than ever to customer demands. This is not only true of big companies like\u00a0Apple, Nike, and Whole Foods but of smaller businesses, too\u2014like your local hardware or grocery store. The rapidly changing business environment affects them all.<\/p>\n

What is the business environment? In some ways it\u00a0resembles\u00a0the natural environment in which we live: It’s all around us but not always noticeable. It includes things like technology, competitors (other businesses), advertising, regulations, consumer demands, and money. When these elements\u00a0of the business environment change\u2014in the same way that seasons and weather change\u2014companies\u00a0need to be able to predict, react, and adapt accordingly. Those who fail to do so may find themselves out in the rain or cold and struggling to survive.<\/p>\n

Although the environment in which businesses operate is always changing, the accelerated pace of\u00a0change\u00a0presents\u00a0special\u00a0challenges and opportunities for businesses today. To get a sense of this rapid and dramatic change, consider\u00a0\"Photo<\/a>something that’s fairly routine for Americans: getting\u00a0a prescription filled. A couple of decades ago, you would have taken a written prescription from your doctor to your local drugstore and presented it to the pharmacist. Then, while waiting for it to be filled, you might\u00a0have leafed through magazines or browsed the store for extra\u00a0items\u2014perhaps shampoo or a greeting card. When your name was called, you probably paid in cash or wrote a check. All such transactions took place during normal business hours\u2014Monday\u2013Friday, 9 am\u20135 pm; larger pharmacies may\u00a0have been\u00a0open for a few hours on Saturday.<\/p>\n

What about now? Think about the last time you had a prescription filled. Did you ever even see it? Chances are you went to the doctor, and at the end of your visit she faxed the\u00a0prescription straight to the pharmacy (perhaps a Rite-Aid, Walgreen’s, or Duane Reed). A little while later, you may have received a text message notifying you that your prescription was ready. Since it wasn’t convenient for you to pick it up during the workday, and because it’s a 24-hour pharmacy, you went at night. You pulled up to the drive-through window and paid using Apple Pay or Google Wallet. Afterward you verified that you received points on your customer loyalty card, which means\u00a0savings or cash that can be applied to future purchases. You never set foot inside the store.<\/p>\n

Alternatively, you may have gotten your prescription filled online and mailed right to your home by a national discount supplier or maybe\u00a0chosen to pick it up at Walmart or Target when you stopped in to shop for a new garden hose.<\/p>\n

You can see from this example that the way companies “do business” is very\u00a0different today. Some of these changes are the result of developments in technology, while others are the result of shifting\u00a0consumer demands and trends. Regardless of the particular cause, though, all businesses have to cope with the changing nature and pressures of the business environment.\u00a0A large part of this course will focus on the ways in which they\u00a0do just that.<\/p>\n

Defining Business<\/h2>\n
\n
\"Photo<\/a><\/p>\n

Radio Shack: Going out of business<\/p>\n<\/div>\n<\/div>\n

So, what is this thing we call \u201cbusiness\u201d?\u00a0<\/span>A\u00a0business<\/strong><\/span> is any activity that provides goods or services to consumers for the purpose of making a profit. Examples of\u00a0goods<\/strong>\u00a0provided by a business are tangible items such as cars, televisions, or soda. A\u00a0service<\/strong> is a consumable, one-time benefit. Services include things such as haircuts, hotel stays, or roller-coaster rides.\u00a0Business can generate profits from the sale of goods and\/or services, and profits\u00a0are\u00a0the financial reward that comes from taking the risk of running or owning a business. More specifically, profit<\/strong> is the amount of\u00a0revenue\u00a0<\/strong>or\u00a0income that a business owner retains after paying all the\u00a0expenses associated with the operation of the business. If the expenses of the business exceed the revenue or income generated from operations, then the business will suffer a loss<\/strong>. Businesses that suffer extraordinary losses during\u00a0a short period of time, or slowly see their profits decline, may end up closing\u00a0or filing for bankruptcy.<\/strong><\/span><\/p>\n

Clearly the goal of most businesses is to generate a profit by increasing revenue while holding expenses in check, and one of the chief ways they do\u00a0this is by providing\u00a0their customers with value. When businesses talk about\u00a0value<\/strong>, they are referring to the relationship between the price a customer pays for the good or service and the perceived benefits the customer receives in exchange for his or her time and money. Value has become such a key component of today’s\u00a0business model that if you go to almost any fast-food restaurant you’ll find\u00a0a “value meal” or “value menu” advertised. Such businesses are sending the message to\u00a0their customers that they’ll\u00a0receive the most “bang for the buck” or the highest value in terms of quantity obtained in exchange for money spent. It’s a business model based\u00a0on the belief\u00a0that if you give your customers value, the profit will follow. As you’ll see in the next section, while all businesses seek to increase their revenue, what a business actually does\u00a0with those funds\u00a0can vary and depends on whether it’s a for-profit or nonprofit organization. \u00a0<\/span><\/p>\n

Check Your Understanding<\/h2>\n

Answer the question(s) below to see how well you understand the topics covered above. This short quiz does not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.<\/p>\n

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.<\/p>\n

\t