Strategy

6/08/2012

BUSS1001 Understanding Business

Week 2: What is business? Max Soyref Business Programs Unit

THE UNIVERSITY OF SYDNEY

BUSINESS SCHOOL

Preview of today’s lecture

›Why is business so important? ›News story News ›What is business? ›Basic business model ›Purpose of a business

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Reading link

›This week’s reading is from Wetherly and Otter 2011.

-Recognises different understandings g g of the word ‘business’ -Discusses the place of business in society

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A question for you

Why is business so important?

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Why is business important?

›Business:

- Is a major change agent in society - Has the potential to be a ‘force for good’ (or ) y ‘evil’) in society - Drives growth and prosperity in the economy - Is a major employer in Australia and around the world

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Business and society

›Business does not exist in a vacuum ›Societal change drives business change ›Society affects what businesses do and how they do it

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The new reality

In the globalised world of the 21st century, the line between business and society is blurred, given the 24/7 consumer and instant feedback mechanisms

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Business news

›Sexton, E. 2012, ‘Digital wallets wave in new era’, Sydney Morning Herald, 4 August, viewed 05 August 2012 http://www.smh.com.au/business/digitalwallets-wave-in-new-era-20120803-23l0f.html

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What is business? – narrow view

› ‘Any activity that seeks to provide goods and services to others while operating at a profit’ (Nickels, McHugh and McHugh 2010, p. 14).

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What is business? – broader perspective

› Transformation of inputs into outputs to produce goods and services that meet needs and wants in society [adapted from Wetherly and Otter 2011]

For-profit F fit businesses Private sector Types of business activity Public sector Not-for-profit organisations Government organisations

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Value of small vs. large business

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Business: small and...