Bsa310 Wk1 Indv Assignment

The Purpose of Business

BSA/310

Date

Instructor Name

The Purpose of Business

Solomon, Poasty, and Martin (2012) define business as “entities that offer products to their customers to earn a profit.” This definition constricts other entities that engage in transactions that the main purpose is not to earn a profit. To further explore what is involved with a business, the building blocks, tools to measure effectiveness, and the role of business systems are discussed.

Business Basics

The foundation of a business is the basic building blocks for the business’s future. The future of the business may be short lived if any part of the foundation is shaky. The reading from week one tells the class that there are five different factors to a business: labor, natural resources, capital, entrepreneurial talent, and technology (Solomon, Poasty, & Martin, 2012). The first four have been involved with business since the beginning. The last factor is relatively new because of the development of computers and other digital technologies. Technology has allowed transactions occur at the speed of light and across vast distances instead of hand-written receipts and face to face.

Tools to Measure Effectiveness

For a business owner to judge how successful the business is, they would need tools to measure it effectiveness. There are hundreds of different tools to measure the success and effectiveness of a business. Computer Business Research (n.d.) shows several ways to measure the effectiveness of information technology (IT) within the business. One way is to benchmark the company systems to get the norm and any movement from that norm could be devastating to the company and its IT infrastructure.

Benchmarking is not the only tool in the toolbox to measure the effectiveness. A second metric largely used among businesses is the survey. A survey can measure from a company’s customer service program to the usefulness of a business’s website.

Role of Business...