Chapter One Notes: What is Business?
The Big Picture
View business as a system of intergrated actions
Different areas: technology application, product engineering and
design, manufacturing and operations, marketing and sales,
distribution, and service.
Commerical Endeavours: markets which the organization serves, the
products and services which it offers, and the needs which it professes to
meet in the marketplace
Reflects the results of understanding the demand/supply
relationships which exist in the marketplace and the capacity and
capabilities of each of the competitors within such a market to deliver
products/services to its buyers.
Employee Interaction: value-creating skills which an organization’s
employees bring to the marketplace
With the employees, products are made and sold=profit=company
Organizational Efficiency & Structure: reflection of the complexities of the
business activities which circulate within an organization.
Reflective of the development of the infrasture and its related
Also shows the transaction processes which it develops in order to
service the marketplace it targets.
These three characteristics, when assessed jointly, result in the
understanding of a business system whose end result is the design,
production, distribution and communication of goods and services, which are
sought after by the marketplace and valued by the customers being targeted.
What is Business?
Mission-focused activities aimed at identifying the needs of a particular
market or markets, and the development of a solution to such needs through
the acquisition and/or transformation of goods and services that can be
delivered to the marketplace at a profit.
A business model is built around four core fundamental resource areas
o Infrastructure and resource base of the organization.
o Human resource requirements of the business