Week 1 Ch.1: Developing a Business Mindset Flashcards
Revenue
money that a company brings in through the sale of goods and services
Business Model
• a concise description of how a business intends to generate revenue
• how businesses make money
Profit
• money left over after all the costs involved in doing business have been deducted from the revenue
• main goal for ogs is to max profits
ex. platforms with subscriptions (Netflix), ads
Competitive Advantage
• some aspects of a product or company that make it more appealing to its target customers
• buying products bc of the brand
• perception (good service)
Not-for-profit organizations
• organizations that provide goods and services without having a profit motive
• still have to follow the principles of a traditional business (generating revenue)
Goods-producing businesses
companies that create value by making “things,” most of which are tangible
Service businesses
companies that create value by performing activities that deliver some benefit to customers
Risk, Reward and Moral Hazard
need to take risks to gain as a business
Business Mindset
considers the myriad decisions that must be made and the many problems that must be overcome before companies can deliver the products that satisfy customer needs
Environments of Business
• market
• economic
• social
• legal and regulatory
• technological
Major Functional Areas in a Business Enterprise
• Research and development (R&D)
• Information technology (IT)
• Manufacturing, production, or operations
• Marketing
• Finance and accounting
• Human resources (HR)
• Business services
Research and development (R&D)
functional area responsible for conceiving and designing new products
Information technology (IT)
systems that promote communication and information usage through the company, or that allow companies to offer new services to their customers
Manufacturing, production, or operations
• an area where the company makes whatever it makes (for goods producing businesses) or does whatever it does (for service businesses)
• purchasing, logistics, facilities management
Marketing
• charging with identifying opportunities in the marketplace
• working with R&D to develop the products to address those opportunities
• creating branding and advertising strategies to communicate with potential customers and setting prices
Finance and accounting
• responsible for virtually every aspect of a firm’s finances
• ensuring that the company has the funds it needs to operate
• monitoring and controlling how those funds are spent
• drafting reports for company management and outside audiences such as investors and government regulators
Human resources (HR)
responsible for recruiting, hiring, developing, and supporting employees
Business services
exist to help companies with specific needs in law, banking, real estate, and other areas
Exploring Careers in Business
• Operations Manager
• Information technology Manager
• HR Specialists
• Marketing Specialist
• Sales Professional
• Accountant
• Financial Manager
Professionalism
the quality of performing at a high level and conducting oneself with purpose and pride
Being a Team Player
• professionals know that they are contributors to a larger cause
• great team players know how to make those around them more effective
• being a team player also means showing loyalty to your organization and protecting your employer’s reputation
Communicating Effectively
• Listen actively
• Provide practical information
• Give facts rather than vague impressions
• Don’t present opinions as facts
• Present information in a concise and effective manner
• Clarify expectations and responsibilities
• Offer compelling, persuasive arguments, and recommendations
Etiquette
the expected norms of behaviour in any particular situation
Digital enterprise
any company that uses digital systems as one of the foundations of its value-creation processes, regardless of what industry it is in or what products it makes
Disruptive innovation
development so fundamentally different and far reaching that it can create new professions, companies, or even entire industries while damaging or destroying others
Digital transformation
process of reimagining a company’s business model and operations to become a digital enterprise
Developing Skills for Your Career
• Communication
• Critical thinking
• Collaboration
• Knowledge application and analysis
• Business ethics and social responsibility
• Information technology skills
• Data literacy
Communication
communicating effectively is important at any stage in your career
Critical thinking
you will need to define and solve problems and make decisions or form judgments about a particular situation or set of circumstances
Collaboration
building team skills is critical
Knowledge application and analysis
ability to learn a concept and then apply that knowledge to other challenges is a skill that employers value highly
Business ethics and social responsibility
as you work on projects throughout the course, be mindful of the ethical implications you could encounter in similar projects on the job
Information technology skills
use projects and activities to build your skills with technology, including word-processing apps, spreadsheets, presentation software, blogging, and messaging systems
Data literacy
you’ll have multiple opportunities to fine-tune your data literacy skills, which include the ability to access, assess, interpret, manipulate, summarize, and communicate data
