1. Nickels
Cover
Nickels
McHugh

2. Chapter
Managing Within The Dynamic Business Environment: Taking Risks and Making Profits 1
1-2

3. Business & Entrepreneurship
Profit
Entrepreneur
Match Risk With Profit
Revenue
Loss
Standard of Living/Quality of Life
Stakeholders
Nonprofit Organizations

4. Objectives of Business
Survival
Social Responsibility
Profit
Growth

5. Creating Wealth: Factors of Production
Entrepreneurship
Land
Labor
Capital
Knowledge

6. Business Environment

7. Economic & Legal Environment
Freedom of ownership
Contract laws
Tradable currency
Elimination of corruption

8. State Budget Deficits (’03 & ’04)- Billions
California $ B
New York B
New Jersey B
Connecticut B
Missouri B
Ohio B
Nevada B
Source: BusinessWeek March 17, 2003

9. Technological Environment
Productivity
E-Commerce
Responsiveness to Customer

10. Competitive Environment
Customer Expectations
Speed
Restructure/Empower
Concern for Natural Environment

11. Consumer Trends
Bottled Water Sales in Past 10 Years Tripled to $5.7 Billion (Women Majority of Drinkers)
Who is Shopping Online?
Americans 38% French 10%
Britons 25% Spaniards 4%
Canadians 24% Poles 3%
Japanese 20%
Source: Business & Economic Review, Jan.-Mar. 2002

12. Social Environment Diversity/Multicultural Aging/Graying of America
Two-Income Families
Telecommuting
Single-Parent Families

13. U.S. Household Size
Source: Census Bureau

14. Buying Power of Diverse Groups
Women $3,700 Billion
Hispanic Americans Billion
African Americans Billion
Gay Men & Lesbians Billion
Asian Americans Billion
Native Americans Billion
Sources: National Organization on Disability Employability; U.S. Pan Asian American Chamber of Commerce; DiversityInc.com; U.S. Census Bureau

15. U.S. Ethnic Composition
Source: Census Bureau

16. 21st Century Diversity Issues
Race
Age
Language
Religion
Sexual Orientation
Gender
Ethnicity
Disability
Source: U.S. Equal Employment Opportunity Commission

17. The Aging of America
Source: Census Bureau

18. % U.S. Population by Age
Source: Census Bureau

19. Older Americans Working
Source: USA Today

20. Growth of Dual-Income Households
Source: USA Today

21. Women In The Workforce
Source: CNNMoney, 3/3/03.

22. Wives Outearn Husbands
All Couples* %
Two-Income Couples 24.1%
*3% Involve Salaries $75,000+
Source: CNNMoney, 3/3/03.

23. Where Americans Live
Source: Census Bureau

24. Global Environment
Quality
Productivity
War & Terrorism
Global Changes

25. The Economic Cost of Disaster
Disaster Costs
September 11, 2001 Attacks $ 70 B
Northridge, CA Earthquake B
Kobe, Japan Earthquake B
Source: Business 2.0 , November 2002.

26. Does Global Experience Help Your Career?
No Response 5%
19%
Unnecessary
56%
Very Helpful
Somewhat
20%
Source: USA Today

27. Evolution of American Business
Agricultural/Manufacturing
Service Industries
Future???

28. Trends in Business Self-Directed, Empowered Employees
Communication Skills
Decision-Making Skills
Teamwork
Leadership
Continual Learning
Rise of Information & Communication Technology
Globalization
Doing Business 24/7
Educated Consumers
Aging Workforce
Increasing Diversity
Pyramid vs. Web
Source: Keying In- Newsletter of the National Business Education Association, March 2003

29. Skill Level Required 58% 40% 2% Average Skill Level: 3.6 Level 1
Source: Hudson Institute as reported in Arnold Packer, “Retooling the American Worker,” Washington Post

30. Current Skill Level 70.5% 16.1% 6.6% 6.8% Level 1 Level 2 Level 3
Average Skill Level: 2.6
16.1%
6.6%
6.8%
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6