Memo

Chapter 1 lecture notes Understanding Canadian Business Nickels 6th

Managing Within the Dynamic Business Environment PP1

PP2

Key terms PP3

business

Entrepreneur

Profit

How about an 8 year old with a lemonade stand?

A business, an entrepreneur PP4

Youtube: Learning Business Through Lemonade Stand”

Revenue

Expense

Profit

Loss

Goods

Services

Risk – an entrepreneur risks time and money for the chance to earn a profit. Think about risk versus reward. The higher the risk you take the greater should be the potential reward.

PP5

Stakeholders are the people and organizations that may gain or lose depending on the decisions and success of a business.

These include:

Banks and similar

Investors

Customers

Workers

Suppliers

Government

The surrounding community

Special interest groups (environmental)

Retailers/wholesalers

These different stakeholders are full of wishes that often conflict with each other.

Environmentalists want “zero emissions” or similar PP6

Workers want more pay and secure jobs

Investors want more profit

Banks want stability and growth

Suppliers want the highest price they can get

Government wants to legislate the firm into being a good corporate citizen.

The community wants donations

Dealers want better terms

It’s hard to please everybody.

Terms:

Outsourcing

Insourcing

Non-profit-organization (the NPO)

This is an organization that does not include profits for investors in its goals. Often they do not attempt to earn a profit at all – those that do intends to give it away for various areas of social good. Knowledge of business and business skills play an important role in the success of NPOs as well.

Quality of life: Just look at a really good beer commercial – that’s quality of life. Friends, freedom, money to buy stuff, a nice clean environment, healthy people, (at least the outdoor commercials) leisure pursuits.

Entrepreneurship versus employment

Pros and...