RSM100Y1 Chapter Notes - Chapter 1: Critical Thinking, Nearshoring, Transaction Processing
Document Summary
A growing economy is one that produces more goods and services while using fewer resources. Business: all profit-seeking enterprises and activities providing goods and services necessary to an economic system. Profit: rewards for businesses who take risks to offer goods and services to customers. Private enterprise system: rewards firms for ability to identify and serve the needs and demands of customers. Competitive differentiation: combination of organization"s abilities, products, and approaches that sets a company apart from competitors. Firms that fail to adjust to consumer preferences risk failure. Private property: right to own, use, buy, and sell land, buildings, individual possessions, and intangible kinds of property. Excessively aggressive practices designed to remove competitors are illegal. You buy what the business chooses to produce. After depression, consumers no longer buy everything businesses produce. Transaction management: build and promote products in hope that enough customers buy to cover the costs and earn profits. Relationship era: customer loyalty by managing every interaction.
