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Lecture 1

COMMERCE 1B03 Lecture Notes - Lecture 1: Insourcing, Business Process, Offshoring


Department
Commerce
Course Code
COMMERCE 1B03
Professor
Rita Cossa
Lecture
1

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Business Environment Lesson 1
Business Fundamentals
Success in business is finding a need for products (goods, services, and/or ideas) and
filling that need
A business is any activity that seeks to provide products to others while operating at a
profit
Since not all businesses make a profit, starting a business can be risky
Business Objectives
Business principles are used in for-profit, non-profit/not for profit, and government agencies
where oftentimes, goals are other than making a profit for their owners or organizer
Risk/Reward Trade-Offs
People have different
Two ways to succeed in business include (1) starting your own company (2) working
your way to the top within a company
To decide which is the best choice for you, you have to calculate the risks and the
potential rewards of each decision
Two Markets
Market (Business to Consumer/B2C)
o Products that are purchased for personal use
Market (Business to Business B2B)
o Product are purchased for resale OR
o For use in the manufacturer or another products OR
o For daily operations
A business can sell to both types of markets
Stakeholders
Defines as all the people who stand to gain or lose by the policies and activities of a
business
o Customer want value
o Employees want security
o Investors want a strong return on investment
o Suppliers want to be paid
o Dealers want support
o Financial institutions want returns
o “uoudig ouities at euity
o Government want compliance
o Environmentalists want change
o Future employers want
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