1. Overview of Business June 4, 2012

2. What Is…? Business – An organization that provides goods and services to earn profits Profit – The positive difference between revenues and expenses

3. Physical Resources LaborCapital Entrepreneurs Factors of Production Information Resources Knowledge workers Knowledge

4. Types of economies Planned Economy: An economic system in which the government owns and operates all sources of production

5. Planned Economy

6. Types of economies Planned Economy: An economic system in which the government owns and operates all sources of production Socialism is a planned economic system in which the government owns and operates selected sources of production Market Economy: An economic system in which buyers and sellers interact based on freedom of choice

7. “Circular Flow in Market Economy” OUTPUT MARKETS Goods Services INPUT MARKETS Labor Capital Entrepreneurs Physical Resources Information Resources HOUSEHOLDS Demand products in output markets Supply resources in input markets FIRMS Supply products in output markets Demand resources in input markets DEMAND DEMANDSUPPLY SUPPLY Copyright ©2003 Prentice Hall, Inc. 1 - 7 70%!

8. Mixed Economies Planned and Market The economies of most countries include both planned and market elements Worldwide trend toward more market elements – Or is it?????

9. State Capitalism Post 2007 State capitalism – a system in which the state dominates markets primarily for political gain – autocratic states reap the benefits of capitalist enterprise while maintaining a vice- grip on political freedom “capitalism for the wealthy”

11. Supply & Demand Supply: The willingness and ability of producers to offer a good or service for sale Law of Supply: Producers will supply (offer) more of a product for sale as its price rises and less as its price drops But what makes the price rise????

12. Supply & Demand Drive the US Economic System Demand: The willingness and ability of buyers to purchase a good or service Law of Demand: Buyers will demand (purchase) more of a product as its price drops and less as its price increases

13. Demand & Supply Quantity of Pizzas Supplied 200 -400 -600 -800 - 1000 -1200 -1400 -1600 -1800 -2000 - $20 - 18 - 16 - 14 - 12 - 10 - 8 - 6 - 4 - 2 - Price of Pizzas Supply Curve Copyright ©2003 Prentice Hall, Inc. 1 - 13 $1.00

14. Demand & Supply 200 -400 -600 -800 - 1000 -1200 -1400 -1600 -1800 -2000 - $20 - 18 - 16 - 14 - 12 - 10 - 8 - 6 - 4 - 2 - Quantity of Pizzas Demanded Price of Pizzas Demand Curve Copyright ©2003 Prentice Hall, Inc. 1 - 14

15. Demand & Supply Quantity of Pizzas per Week 200 -400 -600 -800 - 1000 -1200 -1400 -1600 -1800 -2000 - $20 - 18 - 16 - 14 - 12 - 10 - 8 - 6 - 4 - 2 - Price of Pizzas Demand Curve Supply Curve Equilibrium Price Copyright ©2003 Prentice Hall, Inc. 1 - 15

16. Business cycle

17. Balance sheet recession

18. Recessions & Depressions Recession: Aggregate output declines, unemployment increases Depression: Severe and long-lasting recession

19. Productivity – The amount a system produces compared to the resources needed to produce it – typically measured as a ratio of output per labor-hour – Key to improving “standard of living”

21. Introduction to Business Studies

22. Marketing

23. Objectives and Strategy

28. Offshoring vs. outsourcing Human Resource Management

29. Supply Chain

31. What does “Made in the US” really mean?

32. Blue Springs, MS

33. Make/ModelDomestic-parts contentAssembly location Ford Taurus90 percentChicago Lincoln MKS85 percentChicago Toyota Sienna85 percentPrinceton, Ind. GMC Savana 150082 percentWentzville, Mo. Chevrolet Express 1500 82 percentWentzville, Mo. Buick Lucerne81 percentDetroit Chevrolet Malibu80 percentKansas City, Kan. Honda Odyssey80 percentLincoln, Ala. Toyota Avalon80 percentGeorgetown, Ky. Toyota Tundra80 percentSan Antonio Toyota Venza80 percentGeorgetown, Ky. Source: NHTSA, automaker data (2009 models)

34. Human Resources

35. Production/Operations Management

36. Accounting and Finance

37. External Influences