Contemporary Business 20Th Boone Solutions Manual by dferdinan

Solutions Manual for Contemporary Business 20th Edition by Boone, Kurtz, Pfaltzgraf

ISBN: 9781394274413

Chapter 1: The Changing Face of Business

1 Define business.

Business consists of all profit-seeking activities that provide goods and services necessary to an economic system. Not-for-profit organizations are business-like establishments whose primary objective is public service over profits.

2 Identify and describe the factors of production.

The factors of production consist of four basic inputs: natural resources, capital, human resources, and entrepreneurship. Natural resources include all productive inputs that are useful in their natural states.

Capital includes technology, tools, information, and physical facilities. Human resources include anyone who works for a company. Entrepreneurship is the willingness to take risks to create and operate a business.

3 Describe the private enterprise system.

The private enterprise system is an economic system that rewards companies for their ability to perceive and serve the needs and demands of consumers. Competition in the private enterprise system ensures success for companies that satisfy consumer demands. Citizens in a private enterprise economy enjoy the rights to private property, profits, freedom of choice, and competition. Entrepreneurship drives economic growth.

4 Identify the seven eras in the history of business.

The seven historical eras are the Colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In the Colonial period, businesses were small and rural, emphasizing agricultural production. The Industrial Revolution brought factories and mass production to business. The age of industrial entrepreneurs built on the Industrial Revolution through an expansion in the number and size of companies. The production era focused on the growth of factory operations through assembly lines and other efficient internal processes. During and following the Great Depression, businesses concentrated on finding markets for their products through advertising and selling, giving rise to the marketing era. In the relationship era, businesspeople focused on developing and sustaining long-term relationships with customers and other businesses. In the social era, businesses use technology and relationship management to connect and communicate with consumers and promote innovation. Strategic alliances create a competitive advantage through partnerships. Concern for the environment also helps build strong relationships with customers.

5 Explain current workforce trends in business. The workforce is changing in several significant ways: (1) it is aging and the labor pool is shrinking, and (2) it is becoming increasingly diverse. The nature of work has shifted toward services and a focus on information. More businesses now rely on outsourcing, off shoring, and nearshoring to produce goods or fulfill services and functions that were previously handled inhouse or in-country. In addition, today’s workplaces are becoming increasingly flexible, allowing employees to work from different locations. And companies are fostering innovation through teamwork and collaboration.

6 Identify the skills and attributes needed for today’s manager. For today’s managers, the ability to communicate and strategically apply critical thinking skills and creativity to both challenges and opportunities will be a top priority. Critical-thinking skills and creativity allow managers to pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing with rapid change, and they need skills to help lead their organizations through shift s in external and internal conditions.

7 Outline the characteristics that make a company admired. A company is usually admired for its solid profits, stable growth, a safe and challenging work environment, high-quality goods and services, and business ethics and social responsibility.

Excel Activity Lesson 01: Formulas and Dates

(Estimated Time: 10 minutes)

TED Talk Marketing Managers are working with potential speakers, and a question came up about how long it takes for a recorded video to be posted online. They have provided you with a spreadsheet that includes 100 of the videos recorded between 2001 and 2017. Using this data, calculate the average, minimum and maximum number of days between the recording and publishing dates.

Detailed Instructions:

1. Download the spreadsheet. TED Talk Activity 1.xlsx.

2. Highlight both the film date and publish date columns. Make sure both are formatted as dates.

3. Write a formula that will calculate the difference in the publish date and the film date.

4. Be sure to format this new column as a number rather than a date.

5. Beneath the newly created data, write a formula that will calculate the average number of days between the publish date and the film date. Be sure to set the number of decimal points to 0.

6. Beneath the average formula, write another formula that will display the minimum number of days between the publish date and the film date.

7. Beneath the minimum formula, write a final formula that will display the maximum number of days between the publish date and the film date.

8. Be sure to label your average, min, and max using the cell directly to the left of each formula so any viewer will know what they are viewing.

Excel Activity 1: MC Questions

1. What is the average (to the hundredth decimal place)?

a. 218.56

b. 216.58

c. 215.86 (correct)

d. 230.7

2. What is the minimum?

a. 1 (correct)

b. 2

c. 10

d. 5

3. What is the maximum?

a. 2307 (correct)

b. 1703

c. 1207

d. 2370

CHAPTER 1 THE CHANGING FACE OF BUSINESS

Chapter Overview

To succeed, companies must intuitively understand what customers want so that they can supply it quickly and efficiently. Firms can lead in advancing technology and other changes. They have the resources, know-how, and the financial incentive to bring about innovation.

Businesses require physical inputs as well as the accumulated knowledge and experience of managers and employees. Yet, they also rely on their ability to change with the marketplace. Flexibility is a key to long-term success and to growth.

This book explores the strategies that allow companies to grow and compete in today’s interactive marketplace, along with the skills that you will need to turn ideas into action for your own success in business. This chapter defines business and its role in society. It illustrates how the private enterprise system encourages competition and innovation while preserving business ethics.

Glossary of Key Terms

Brand: name, term, sign, symbol, design, or some combination that identifies the products of one firm and differentiates them from competitors’ offerings

Branding: process of creating an identity in consumers’ minds for a good, service, or company; a major marketing tool in contemporary business

Business: all profit-seeking activities and enterprises that provide goods and services necessary to an economic system

Capital: production inputs consisting of technology, tools, information, and physical facilities

Capitalism: economic system that rewards firms for their ability to perceive and serve the needs and demands of consumers; also called the private enterprise system

Competition: a natural force that guides free market capitalism

Competitive differentiation: unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers

Consumer orientation: business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs

Creativity: capacity to develop novel solutions to perceived organizational problems

Critical thinking: ability to analyze and assess information to pinpoint problems or opportunities

Crowdsourcing: enlisting the collective talent of a number of people to get work done

Diversity: blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a firm’s chances of success

Entrepreneur: person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business

Entrepreneurship: willingness to take risks to create and operate a business

Factors of production: four basic inputs for effective operation: natural resources, capital, human resources, and entrepreneurship

Good: tangible products that can be physically bought or sold

Labor: includes anyone who works, including both the physical labor and the intellectual inputs contributed by workers.

Land: is used in the production of a good, and includes all production inputs or natural resources that are useful in their natural states such as oil, gas, minerals, and timber.

Nearshoring: outsourcing production or services to locations near a firm’s home base.

Not-for-profit organizations: organizations that have primary objectives such as public service rather than returning a profit to their owners

Offshoring: relocation of business processes to lower-cost locations overseas

Outsourcing: using outside vendors contracting work out to another party for the production of goods or fulfillment of services and functions previously performed in house

Private enterprise system: economic system that rewards companies for their ability to identify and serve the needs and demands of customers

Private property: most basic freedom under the private enterprise system; the right to own, use, buy, sell, and bequeath land, buildings, machinery, equipment, patents, individual possessions, and various intangible kinds of property

Profits: rewards for businesspeople who take the risks involved to offer goods and services to customers

Relationship era: the business era in which companies seek ways to actively nurture customer loyalty by carefully managing every interaction

Relationship management: collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties

Services: intangible products that provide benefits to others or assistance from others

Social era: a new approach to the way businesses and individuals interact, connect, communicate, share, and exchange information with each other in virtual communities and networks around the world.

Strategic alliance: partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants to do business

Transaction management: building and promoting products in the hope that enough customers will buy them to cover costs and earn profits

Vision: the ability to perceive marketplace needs and what an organization must do to satisfy them

Annotated High-Level Lecture Outline

Learning Objective 1: Define business.

Opening Vignette: Changemaker

Who is Jeff Bezos, and how did he build the Amazon empire from scratch? Before founding Amazon in 1994, Bezos was much like you an undergraduate who went on after college to work various roles in business before making a bold leap to create something extraordinary. Founding Amazon, an online bookstore, in his garage, he embarked on a journey that transformed the way the world shops. Bezos' vision and determination led to the creation of the world's largest online retailer. He oversaw the development of Amazon's e-commerce platform as it expanded from books to a vast array of products, Kindle e-readers, and the Amazon Web Services (AWS) cloud computing division, which has become a cornerstone of the modern internet. Jeff Bezos is not only a business visionary but also a hands-on leader. With a workforce spanning hundreds of thousands of employees and annual revenues in the hundreds of billions, Bezos has helmed Amazon's expansion into multiple industries, including media, logistics, and cloud services.

WHAT IS BUSINESS?

1. Business

a. The term “business” refers to a broad concept.

b. Business consists of all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.

i. Businesses produce tangible goods or provide services.

ii. Business drives economics and improves the standard of living.

c. At the heart of every business endeavor is an exchange between a buyer in need of a good or service and a seller who makes a profit.

d. Profits are rewards for businesspeople who risk blending people, technology, and information to create and market goods or services.

i. Profits are incentives for people to start companies, grow them, and provide competitive products.

ii. In accounting, profit is the difference between a firm’s revenues and the expenses it incurs in generating these revenues.

iii. A company cannot survive without profits.

2. Not-for-Profit Organizations

a. Not-for-profit organizations are business-like establishments that have primary objectives other than profits. A tax law provision granted to not-for-profits by the Internal Revenue Service is called section 501(c)(3).

b. They place public service over profits but need money to achieve their goals.

i. In the private sector they include museums, libraries, trade associations, charitable organizations, and religious organizations.

ii. In the public sector, they include government agencies, political parties, and labor unions.

c. Not-for-profits are a major part of the U.S. economy.

i. More than 1.5 million not-for-profit organizations operate in the United States, contributing more than $1 trillion in a recent year.

ii. They employ more workers than all federal and state government agencies combined and have millions of unpaid volunteers.

d. They face many of the same challenges as businesses when it comes to raising money.

i. Without funds, they cannot provide services.

ii. Some not-for-profits sell merchandise or set up profit-generating arms.

Assessment Check Answers

1.1 What activity lies at the center of every business endeavor? At the center of every business endeavor is an exchange between a buyer and a seller.

1.2 What is the primary objective of a not-for-profit organization?

Not-for-profit organizations place public service above profits, although they need to raise money in order to operate and achieve their social goals.

Learning Objective 2:

Identify and describe the factors of production. The factors of production consist of four basic inputs: land, labor, capital, entrepreneurship, and knowledge.. Land is used in the production of a good, and it includes all production inputs or natural resources that are useful in their natural states such as oil, gas, minerals, and timber.

Labor includes human resources – and both physical and intellectual inputs. Capital includes technology, tools, information, and physical facilities. Entrepreneurship is the willingness to take risks to create and operate a business. Knowledge brings innovation to businesses, consumers, and society at large.

FACTORS OF PRODUCTION

1. Factors of production are inputs required for the successful operation of an economic system.

2. The four basic factors of production are land, labor, capital, and entrepreneurship.

a. Land

i. Used in the production of a good, includes all production inputs or natural resources that are useful in their natural states such as oil, gas, minerals, and timber.

b. Labor

c. Capital

i. Human resources include everyone who works for an organization.

ii. Human resources encompass both physical labor and intellectual inputs.

Employees are a source of ideas and innovation.

Talented, motivated employees provide a competitive edge.

i. Capital includes technology, tools, information, and physical facilities.

ii. Technology refers to machinery and equipment, including computers and software, telecommunications, and inventions.

iii. Technology improves products and provides timely and accurate information.

iv. To remain competitive, a company needs to continually acquire, maintain, and upgrade its capital, which requires funding.

v. Those who supply capital to companies earn payment in the form of interest.

d. Entrepreneurship

a. Entrepreneurship is the willingness to take the risks necessary to create and operate a business.

e. Knowledge

b. Knowledge encompasses the expertise, information, and intellectual capabilities that individuals and organizations use to drive innovation.

Assessment Check Answers

2.1 Identify the five basic inputs to an economic system. The four basic inputs are land, labor, capital, entrepreneurship, and knowledge.

2.2 List four types of capital. Four types of capital are technology, tools, information, and physical facilities.

Learning Objective 3: The private enterprise system.

The private enterprise system is an economic system that rewards firms for their ability to perceive and serve the needs and demands of customers. Competition in the private enterprise system ensures success for firms that satisfy consumer demands. Citizens in a private enterprise economy enjoy the rights to private property, profits, freedom of choice, and competition. Entrepreneurship drives economic growth.

THE PRIVATE ENTERPRISE SYSTEM

Private Enterprise

a. No business operates in a vacuum each is part of an economic system.

b. The economic system of a society determines how goods and services are produced, distributed, and consumed in a society, as well as patterns of resource use.

c. The private enterprise system is an economic system that rewards businesses for their ability to perceive and serve the needs and demands of customers.

i. It minimizes government interference.

ii. Businesses that satisfy customers acquire the factors of production and earn profits.

d. Capitalism is another name for the private enterprise system.

i. Adam Smith in 1776, said that an economy is best regulated by the “invisible hand” of competition a natural force that guides free market capitalism.

ii. A basic premise of the private enterprise system, the invisible hand concept also refers to the fact that individuals' efforts to pursue their own interest may also benefit society. In the United States, competition regulates much of economic life.

iii. Competition leads to the best goods and services as weaker producers leave the marketplace.

e. Competitive differentiation is the unique combination of organizational abilities, products, and approaches that sets a company apart from competitors, in the minds of customers.

2. Basic Rights in the Private Enterprise System

a. The right to private property means that every person has the right to own, use, buy, sell, and bequeath property.

i. This is the most basic freedom under the private enterprise system.

b. Business owners have the right to all profits after taxes earned through their activities.

c. Citizens in private enterprise system are free to choose their own employment, purchases, and investments.

d. Other economic systems sometimes limit freedom of choice to accomplish government goals.

e. The private enterprise system ensures fair competition by allowing the public to set rules.

i. The U.S. government prohibits excessively aggressive competitive practices.

ii. There are laws against price discrimination, fraud, and deceptive advertising and packaging.

3. The Entrepreneurship Alternative

a. Entrepreneurs are risk takers who recognize marketplace opportunities and use their capital, time, and talents to pursue profits.

b. Entrepreneurship drives economic growth and keeps pressure on existing companies to satisfy customers.

c. Data regarding U.S. entrepreneurship:

i. About 1 of every 7 businesses started in the past year.

ii. Of the current 31 million U.S. small businesses, 22 million are selfemployed people without any employees.

d. Entrepreneurship provides innovation.

i. Start-up companies tend to innovate most in areas of new technology.

ii. Small companies are more flexible, so they can make changes quickly.

iii. Entrepreneurs often find new ways to use the four factors of production.

e. Larger or existing businesses also can encourage entrepreneurial thinking among their employees and customers in order to gain improved innovation and new market opportunities.

Business & Technology:

Walmart’s Store Maps Bridge Technology and Retail

Imagine you're on a tight schedule, with only an hour to shop before hosting a party back at your apartment. In 2018, the retail giant Walmart introduced a game-changing feature in its mobile app: in-store navigation maps. This digital tool is designed to help customers efficiently find items in Walmart's large stores, averaging 180,000 square feet and stocking about 100,000 items. Search for an item in the app, and instantly glean which aisle it’s in in your specific store.

Questions for Critical Thinking

1. How does Walmart’s integration of digital technology with physical store operations impact both the customers and the business at large?

Walmart's integration of digital technology with physical store operations enhances customer convenience and satisfaction by providing efficient in-store navigation, while also boosting employee productivity and streamlining operations.

2. Have you (or would you) used this feature? Does it add value to you? Research more about how Walmart differentiates itself from other retailers by its use of technology.

I have not used this feature, but it would add significant value by saving time and improving the shopping experience; Walmart differentiates itself by leveraging advanced technology like instore navigation to enhance both customer and employee experiences, setting a standard in retail innovation.

3. What challenges do you think Walmart faced in bringing this feature to fruition? How do you think they met these challenges?

Walmart likely faced challenges in ensuring accurate and up-to-date aisle information across thousands of stores and integrating the technology seamlessly with existing operations; they likely overcame these by cross-departmental collaboration, extensive testing, and continuous updates to the system.

Assessment Check Answers

3.1 What is an alternative term for private enterprise system? Capitalism is an alternative term for private enterprise system.

3.2 What is the most basic freedom under the private enterprise system? The most basic freedom under the private enterprise system is the right to private property

3.3 What is an entrepreneur?

An entrepreneur is a risk taker who is willing to start, own, and operate a business

Learning Objective 4:

Identify the seven eras in the history of business.

The seven historical areas are the Colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, and the relationship era. In the Colonial period, businesses were small and rural, emphasizing agricultural production. The Industrial Revolution brought factories and mass production to business. The age of industrial entrepreneurs built on the Industrial Revolution through an expansion in the number and size of firms. The production era focused on the growth of factory operations through assembly lines and other efficient internal processes. During and following the Great Depression, businesses concentrated on finding markets for their products through advertising and selling, giving rise to the marketing era. In the relationship era, businesspeople focus on developing and sustaining long-term relationships with customers and other businesses. Technology promotes innovation and communication, while alliances create a competitive advantage through partnerships. Concern for the environment also helps build strong relationships with customers. The social era of business is a new approach to the way businesses and individuals interact, using technology to connect, communicate, share, and exchange information with each other in virtual communities and networks around the world.

SEVEN ERAS IN THE HISTORY OF BUSINESS

The seven eras of U.S. business include the Colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, the relationship era, and the social era.

1. The Colonial Period

a. The Colonial period focused on rural and agricultural production.

i. The success or failure of crops influenced every aspect of the economy.

ii. Colonial towns were marketplaces for farmers and craftspeople.

b. Colonists depended on England for manufactured items and funding industries.

c. Even after the Revolution, British investors financed U.S. industries well into the 19th century.

2. The Industrial Revolution

a. The Industrial Revolution marked a transformation into manufacturing, starting in England around 1750 and spreading to the United States by the mid-1800s.

b. In the past, specialized, skilled workers built products one by one.

c. Now a factory system mass-produced items using semiskilled workers.

i. Factories profited from the savings of large-scale production, bolstered by machines.

ii. Raw materials were purchased cheaply.

iii. Specialization of labor led to faster and more efficient production.

d. U.S. business rapidly became industrialized.

i. Agriculture became mechanized.

ii. Factories sprang up.

iii. A railroad system increased the pace of industry.

3. The Age of Industrial Entrepreneurs

a. The age of industrial entrepreneurs led to new inventions and innovations, starting in the late 1800s.

b. Inventors created useful products and new production methods.

i. Eli Whitney (interchangeable parts)

ii. Robert and Cyrus McCormick (farm machines)

iii. Cornelius Vanderbilt (railroads)

iv. J. P. Morgan (banking)

v. Andrew Carnegie (steel)

c. This era raised the overall standard of living in the United States.

d. New prosperity increased demand for manufactured goods.

4. The Production Era

a. Demand for manufactured goods increased through the 1920s.

i. Huge, labor-intensive factories dominated U.S. business growth.

ii. Work became increasingly specialized for each laborer.

iii. Managers focused on producing more goods at a faster pace.

b. The assembly line, introduced by Henry Ford, became commonplace.

c. Businesses focused on internal processes rather than external influences.

i. Marketing was minimal, with a focus on producing and distributing goods.

ii. Little attention was paid to consumer wants or needs.

iii. Businesses decided what the market would get.

5. The Marketing Era

a. The marketing era, starting in the 1930s, shifted focus to customers’ wants and needs.

b. During the Great Depression, the focus shifted to marketing, selling, and advertising.

c. After World War II, demand for consumer goods exploded.

i. Companies focused on consumer orientation as they determined what people wanted, then designed products to satisfy those needs.

ii. Consumer choices skyrocketed.

iii. Branding created an identity in consumers’ minds for a good, service, or company.

iv. A brand is a name, term, sign, symbol, design, or some combination that identifies the products of one company and differentiates them from competitors’ offerings.

6. The Relationship Era

a. Transaction management had dominated since the 1800s, as businesses concentrated on manufacturing products and then hoping customers would buy them.

b. The relationship era is the business era in which companies seek ways to build long-term customer loyalty by carefully managing every interaction.

c. Businesses earn enormous paybacks for nurturing customer loyalty.

i. Expenses are cut because it costs less to keep loyal customers than to find new ones.

ii. Firms discover the needs and preferences of customers, which leads to improved competitive differentiation.

d. The relationship era is now based on connections between:

i. businesses and customers

ii. employers and employees

iii. technology and manufacturing

iv. separate companies

7. The Social Era

a. The social Era of business is a new approach to the way businesses and individuals interact, using technology to connect, communicate, share, and exchange information with each other in virtual communities and networks around the world by using technology.

b. The social era is based on the premise that organizations create value through connections with groups or networks of people with similar goals and interests.

c. Social media tools and technologies include weblogs, blogs, podcasts, and microblogs (such as Twitter); social and professional networks (such as Facebook and LinkedIn); picture-sharing platforms (such as Instagram and Tumblr); and content communities (such as YouTube), to name a few.

d. Through the use of technology and relationship management tools, the social era creates businesses opportunities.

8. Strategic Alliances

a. Strategic alliances are partnerships formed to create a competitive advantage for both firms.

9. The Green Advantage

a. A way to build relationships is to incorporate issues of value into your business that are of concern to your customers.

b. Developing environmentally friendly products and processes is a major force in business.

c. Companies are well aware of saving energy, cutting emissions, reducing pollution and waste.

Job Description:

Data Analyst

In today's data-driven world, the role of a Data Analyst has become crucial in deciphering trends, patterns, and valuable insights from vast amounts of data. These professionals work across various sectors, including technology, healthcare, finance, and marketing. A Data Analyst's role is pivotal in helping organizations make informed decisions by turning complex data into understandable and actionable information.

Assessment Check Answers

4.1 What was the Industrial Revolution?

The Industrial Revolution began around 1750 in England and moved business operations from an emphasis on independent, skilled workers to a factory system that mass-produced items.

4.2 During which era was the idea of branding developed?

The idea of branding began in the marketing era.

4.3 What is the difference between transaction management and management in the relationship era?

Transaction management focuses on building, promoting, and selling enough products to cover costs and earn profits. In the relationship era, businesses seek ways to actively nurture customer loyalty by carefully managing every interaction.

Learning Objective 5:

Explain current workforce trends in business.

The workforce is changing in several significant ways: (1) it is aging and the labor pool is shrinking, and (2) it is becoming increasingly diverse. The nature of work has shifted toward services and a focus on information. More firms now rely on outsourcing, offshoring, and nearshoring to produce goods or fulfill services and functions that were previously handled inhouse or in-country. In addition, today’s workplaces are becoming increasingly flexible, allowing employees to work from different locations and through different relationships. And companies are fostering innovation through collaboration and new models of work like crowdsourcing to innovate.

1. Growing partnerships and relationships

a. Keeping pace with accelerated change in today’s business world is crucial

b. To keep pace with change, a skilled and knowledgeable workforce is an essential resource.

c. High-quality production workforces are needed to compete in global markets

d. Knowledge is needed to stay on top of new technologies, advances, and innovation

e. Integration of machines and artificial intelligence (AI) continues to expand.

2. Changes in the Workforce

a. Challenges result from recent changes in the workforce.

b. These include Aging of the population and shrinking labor pool, an increasingly diverse workforce, the changing nature of work, the need for flexibility and mobility, innovation through collaboration, artificial intelligence to innovate and become more efficient.

3. Aging of the Population and Shrinking Labor Pool

a. There are more than 8.5 million U.S. workers 65 or older in today’s workforce, a 60% increase compared to a decade ago.

b. Generation X members (born from 1965 to 1981) and Generation Y (born from 1982 to 2005) are launching and building their careers.

c. Other generations include Generation Z, born after Millennials, and the Silent Generation workers born before 1946.

i. The U.S. labor pool could fall short by 10 million people as Baby Boomers retire.

ii. Management challenges with a multi-generational workforce with up to five different generations

iii. Work-life styles, work expectations, and disparate levels of technological expertise

iv. Advanced technological skills will be required

d. Technology demands workers with sophisticated skills.

i. The demand for college graduates is greater than the supply.

ii. Companies hire talent at the extreme ends of the working-age spectrum.

e. Employers must administer retirement planning and disability programs, retraining, and insurance benefits.

4. Increasingly Diverse Workforce

a. To gain access to opportunities, workers in developing regions have moved to more prosperous countries like the United States.

b. Diversity and inclusion must be part of workplace policies to retain employees.

c. Workplace success is enhanced through different genders (and gender spectrum), ethnic backgrounds, cultures, religions, ages, and physical and mental abilities.

d. Rapid technological change has intensified the hiring challenge by requiring workers with technical skills and advanced degrees.

5. Outsourcing and the Changing Nature of Work

a. The nature of work is shifting in today’s companies. Services over manufacturing, dominates most of the U.S. workload.

i. Outsourcing involves the use of outside vendors contracting work out to another party for the production of goods or fulfillment of services and functions previously performed in house.

b. Outsourcing reduces costs while gaining access to expertise.

c. Offshoring is the relocation of businesses overseas in order to lower costs.

i. India ranked as the top off shoring destination worldwide, followed by China and Malaysia.

ii. Some firms create entire functions overseas, so offshore jobs are never in the United States.

d. Nearshoring outsources production or services to locations near a company’s home base or headquarters.

6. Flexibility and Mobility

a. Exploration and implementation of various work arrangements.

b. Millennials, more open to freelancing or working on contract over traditional full-time employment, expect flexible work hours along with mobility to work at home, a café, or the office.

c. Networking and virtual teams allow people to work across the globe and share knowledge and ideas.

d. Managers and employees need to be flexible and responsive to change.

7. Innovation through Collaboration

a. Businesses use teamwork in a creative environment where members solve problems or seize opportunities.

b. Crowdsourcing: enlisting the collective talent of a number of people to get work done.

c. Crowdsourcing allows companies to find workers for a specific task or project in a more efficient and cost-effective way using online marketplaces to hire global talent beyond their own workforce.

Clean & Green Business

Happy Meal Packaging Not All Happy

After enjoying a Happy Meal at McDonald’s, one thought that is probably not at top of mind for kids and parents alike is the impact of the meal’s packaging on the planet’s forests. In a typical Happy Meal, in addition to the paper cup and napkins, the burger is wrapped in paper, as is the plastic straw; the fries arrive in a paper sleeve; ketchup packets, made from a thin plastic film, are also supplied and of course, there’s the plastic toy. At the world’s largest restaurant chain, serving over 69 million people daily, with 37,000 locations in over 100 countries, all of this packaging, made primarily from trees, goes straight into the trash, and subsequently, a landfill.

Questions for Critical Thinking

1. The average American uses six trees worth of paper each year. In reality, forest products like toilet paper, napkins, tissues, and paper towels are used by people every day. What solutions exist to lessen or prevent clearing the earth’s forests to produce such products? Read documents on digital devices, use recycled paper, print double-sided, store documents digitally, repurpose used paper. To reduce paper towel usage, use cloth napkins and towels.

2. McDonald’s has also committed to replace recycle bins within its stores and to do away with eco-unfriendly and nearly impossible-to-recycle plastic (polystyrene) foam cups. Research the status and results of its initiatives. By 2030, McDonald’s is pledging to reduce greenhouse gas emissions from their restaurants and

offices by 36 percent, and reduce their emissions intensity (per metric ton of food and packaging) across their supply chain by 31 percent. The company estimates these reductions will prevent 150 million metric tons of C02 equivalents (CO2e) from being released into the atmosphere the equivalent of removing 32 million cars from the road for one year.

Assessment Check Answers

5.1 Define outsourcing, offshoring, and nearshoring. Businesses look to reduce costs and focus resources on the work they can do most efficiently by shifting required work to other businesses. Outsourcing involves using outside vendors contracting work out to another party for the production of goods or fulfillment of services and functions previously performed in house. Offshoring refers to relocation of business processes, both production (manufacturing) and services (accounting), to lower-cost locations overseas. Nearshoring refers to outsourcing production or services to locations near a company’s home base or closer to customers.

5.2 Describe the importance of collaboration and employee partnership. Businesses are increasingly focused on collaboration rather than on individuals working alone. No longer do employees just put in their time at a job they hold their entire career. The new employer-employee partnership encourages teamwork, creative thinking, and problem solving. Crowdsourcing is enlisting the collective talent of a number of people to get work done. It allows companies to find workers for a specific task or project in a more efficient and cost-effective way using online marketplaces to hire global talent beyond their own workforce.

Learning Objective 6:

Identify the skills and attributes needed for today’s manager. Today’s managers need vision the ability to perceive marketplace needs and the way their firm can satisfy them. Critical-thinking skills and creativity allow managers to pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing with rapid change, and they need skills to help lead their organizations through shifts in external and internal conditions.

TODAY’S MANAGER

a. Companies now look for highly motivated visionaries and transformational managers and leaders.

b. For today’s manager, the ability to communicate and strategically apply critical thinking skills and creativity to both challenges and opportunities will continue to be a top priority.

1. Importance of Vision

Vision is the ability to perceive market needs and understand what a firm can do to satisfy them.

2. Importance of Critical Thinking and Creativity

a. Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities.

i. It includes determining the authenticity, accuracy, and worth of information, knowledge, and arguments.

ii. It involves looking beneath the surface for deeper meanings and connections.

b. Creativity is the capacity to develop novel solutions to perceived problems.

i. It involves seeing different and better ways of doing things.

ii. Creativity must lead to action.

4. Ability to Lead Change

a. Managers must be able to lead business through changes driven by technology, marketplace demands, and global competition.

b. Managers must recognize employee strengths and motivate workers toward common goals.

c. Change comes from both external and internal forces.

i. External forces include customer feedback, international developments, economic trends, and new technologies.

ii. Internal forces include new goals, employee needs, labor union demands, or production problems.

Business Model:

Shake Shack Blends Up “Enlightened Hospitality”

Based in New York, Shake Shack is a regional “fast-casual” restaurant known for its highquality, sustainably sourced food offerings, which include its signature “ShackBurger,” hot dogs, crinkle fries, and, of course, milk shakes. The quickly growing “fast- casual” restaurant segment, which includes Chipotle and Panera, is a hybrid of fast food and casual dining. Compared to fast food restaurants, Shake Shack offers healthier, higher quality, and specially prepared food in an upscale setting with top-notch service. With a vision of “stand for something good,” Meyer’s Shack Team seems to be serving up its unique dining experience to an increasing number of satisfied customers.

Questions for Critical Thinking

1. With its IPO, Shake Shack plans to continue its global expansion. Critics are concerned that Shake Shack’s regional strength in its New York hub may not translate to a larger

potential in other countries. Do you agree? Why or why not?

There may need to be some customization to local tastes and preference However, premium hospitality works in any culture.

2. In regard to sustainability, many consumers believe that ethically raised animals are not just better for their diets but also better for the overall community and the global supply chain. Research fast-casual dining and provide examples of how, in addition to using hormone- and antibiotic-free beef, for example, this restaurant sector has gained traction among Millennials.

Students’ answers will vary – some options may be organically grown food and animals, no genetically grown elements, etc.

Assessment Check Answers

6.1 Why is vision an important managerial quality?

To thrive in today’s economy, managers need vision, the ability to perceive marketplace needs and to determine what an organization must do to satisfy those needs.

6.2 What is the difference between creativity and critical thinking?

Creativity is the capacity to develop novel solutions to perceived organizational problems. Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities.

Learning Objective 7:

Outline the characteristics that make for a successful and admirable company. A company is usually admired for its solid profits, stable growth, a safe and challenging work environment, high-quality goods and services, and business ethics and social responsibility.

WHAT MAKES FOR A SUCCESSFUL AND ADMIRED COMPANY?

Every year, publications and organizations release lists of companies that are most admired.

1. Factors that make a company admired include innovation, people management, use of corporate assets, social responsibility, quality of management, and products and services.

2. Business ethics refers to standards of conduct and moral values involving decisions made in the workplace.

3. Social responsibility refers to a management philosophy that includes: a. contributing resources to the community b. preserving the natural environment

c. developing or participating in nonprofit programs that benefit the general public.

Judgment Call:

Volkswagen Fails the Emissions Test

With three cars in the top 10 list of the best-selling cars of all time the Golf, the Beetle, and the Passat, Volkswagen recently celebrated a record year, surpassing sales of 10 million cars. Despite its success as an iconic brand with car models that span multiple revisions and generations, cheating on an emissions test has landed the company in a shocking situation. Volkswagen Group of America admits it is totally at fault over the vehicle emissions issue, which will lead to an investigation of the German car maker for deliberately cheating on U.S. emissions tests. Volkswagen is remorseful, and its CEO abruptly resigned. The company wants nothing more than to gain back the trust of its coveted customers many of whom feel betrayed.

Questions for Critical Thinking

1. What impact do you think the emissions scandal will have on future sales of Volkswagen cars in the United States?

It is a trust issue for consumers and VW continues to earn it back. This is not the first incident in the auto industry – Toyota was in similar ethical troubles in the US markets.

2. Knowing that the company acknowledges its wrongdoing, would you purchase a car from Volkswagen in the near future? Why or why not?

Student answers will vary. To date, the company introduced an all-new Jetta which seems to be helping with reviving sales.

Assessment Check Answers

7.1 Define business ethics and social responsibility.

Business ethics refers to the standards of conduct and moral values involving decisions made in the work environment.

Social responsibility is a management philosophy that includes contributing resources to the community, preserving the natural environment, and developing or participating in nonprofit programs designed to promote the well-being of the general public

7.2 Identify three criteria used to judge whether a company might be considered admirable.

Criteria in judging whether companies are admirable include any three of the following: solid profits, stable growth, a safe and challenging work environment, high-quality goods and services, and the demonstration of business ethics and social responsibility.

Answers to Review Questions

1. Why is business so important to a country’s economy?

Business provides the bulk of employment opportunities, as well as the products and services that people need. Business drives the economic pulse of a nation.

2. In what ways are not-for-profit organizations a substantial part of the U.S. economy? What unique challenges do not-for-profits face?

Although not-for-profit organizations have goals other than generating profits, managers of notfor-profit organizations face many of the same challenges as executives of profit-seeking businesses. Without funding and skilled employees, they cannot do research, obtain raw materials, or provide services.

Not-for-profits face many of the same challenges as profit-seeking businesses. Without operating capital, they cannot do research, obtain raw materials, or provide services. For capital, they rely on donations from private sources and government sources. When the economy sees a downturn, donations may decrease.

3. Identify and describe the four basic inputs that make up factors of production. Give an example of each factor of production that an auto manufacturer might use.

The five basic inputs are land (where the factory sits), labor (auto technicians and top management), capital (factories, technology), entrepreneurship (company founder), and knowledge (innovation for a new infotainment system)).

4. What is a private enterprise system? What four rights are critical to the operation of capitalism? Why would capitalism function poorly in a society that does not ensure these rights for its citizens?

A private enterprise system is an economic system that rewards firms for their ability to perceive and serve the needs and demands of consumers. It minimizes government interference in economic activity.

The rights include rights to private property, profits, freedom of choice, and competition. A business would not be able to earn a profit, and individuals would have fewer choices for employment, purchases, and investments.

5. In what ways is entrepreneurship vital to the private enterprise system?

Besides creating jobs and selling products, entrepreneurship provides the benefits of innovation. In contrast to more established firms, start-up companies tend to innovate most in fields of technology that are new and uncrowded with competitors, making new products available to businesses and consumers. Because small companies are more flexible, they can make changes to products and processes more quickly than larger corporations. Entrepreneurs often find new ways to use natural resources, technology, and other factors of production. Often, they do this

because they have to they may not have enough money to build an expensive prototype or launch a nationwide ad campaign.

6. Identify the seven eras of business in the United States. How did business change during each era?

The six eras of business in the United States are the Colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, and the relationship era. The Colonial period was primarily agricultural, so the economic focus was on rural areas. Manufactured items came from England. The Industrial Revolution was the beginning of mass production by semiskilled workers using machines. Factories were built in cities and railroads were constructed to move goods. The age of industrial entrepreneurs saw advances in technology and increased demand for manufactured goods, leading to entrepreneurial opportunities. The production era emphasized producing more goods faster, leading to production innovations. The marketing era resulted when businesses found they could no longer automatically sell everything they produced. Competition demanded a new consumer orientation. In the relationship era, businesses take a longer-term approach to customer management. They benefit from nurturing relationships with customers, employees, suppliers, and other businesses. The social era of business is a new approach to the way businesses and individuals interact, using technology to connect, communicate, share, and exchange information with each other in virtual communities and networks around the world.

7. Describe the focus of the most recent era of U.S. business. How is this different from previous eras?

The social era is a new approach to the way businesses and individuals interact, connect, communicate, share, and exchange information with each other in virtual communities and networks around the world. It is different from previous eras because it involves a deeper and faster level of interaction and connectivity to enable sharing and information exchange using a virtual community and networks worldwide.

8. Define partnership and strategic alliance. Provide an example of two businesses that might form a strategic alliance and briefly describe how this would benefit each business. A partnership is an affiliation of two or more companies that help each other achieve common goals. One such form of partnership is a strategic alliance, a partnership formed to create a competitive advantage for the businesses involved. An example of two businesses that could form a strategic alliance is a local deli and a farmer’s market. The deli could use all natural, local produce in their sandwiches and inform customers that that’s where their ingredients came from, while the farmer’s market could sell things like baked goods and other snacks that the deli staff prepared to promote both their natural, local ingredients and the deli’s cooking/baking expertise.

9. Identify the major changes in the workforce that will affect the way managers build a world-class workforce. Why is the knowledge economy so important?

An aging population, a shrinking labor pool, the growing diversity of the workforce, and the new employer-employee relationships will challenge managers. Managers will need creativity and vision to stay on top of rapidly changing technology and to manage the complex relationships in the global business world of the 21st century. The knowledge of the employees plays a vital role in the firm’s ability to stay on top of new technologies and innovations. A first-class workforce can be the foundation of a firm’s competitive differentiation, providing important advantages over competing businesses.

10. Identify four qualities that managers of the 21st century must have. Why are these qualities important in a competitive business environment?

Managers need vision, critical thinking, creativity, and the ability to steer change. Vision gives businesspeople the ability to perceive marketplace needs and determine what an organization must do to satisfy them. Critical thinking and creativity enable businesspeople to look at a wide variety of situations, draw connections between disparate information, and develop futureoriented solutions. Business owners must be able to guide their employees and organizations through the changes brought about by technology, marketplace demands, and global competition.

Projects and Teamwork Applications

1. The entrepreneurial spirit fuels growth in the U.S. economy. Choose a company that interests you one you have worked for or dealt with as a customer and read about the company by visiting its website. Learn what you can about the company’s early history: Who founded it and why? Is the founder still with the organization? Do you think the founder’s original vision is still embraced by the company? If not, how has the vision changed?

2. Branding distinguishes one company’s goods or services from those of its competitors. Each company you purchase from hopes that you will become loyal to its brand. Some well-known brands are Amazon, Google, Toyota, and Apple. Choose a type of good or service you use regularly and identify the major brands associated with it. Are you loyal to a particular brand? Why or why not?

3. More and more businesses are forming strategic alliances to become more competitive. Sometimes, businesses pair up with not-for-profit organizations in a relationship that is beneficial to both. Choose a company whose goods or services interest you, such as REI, FedEx, Kashi, or Sam’s Club. On your own or with a classmate, research the company on the Internet to learn about its alliances with not-for-profit organizations. Then describe one of the

alliances, including goals and benefits to both parties. Create a presentation for your class.

4. This chapter describes how the nature of the workforce is changing: the population is aging, the labor pool is shrinking, the workforce is becoming more diverse, the nature of work is changing, the workplace is becoming more flexible and mobile, and employers are fostering innovation and collaboration among their employees. Form teams of two to three students. Select a company and research how that company is responding to changes in the workforce as discussed in the chapter. When you have completed your research, be prepared to present it to your class. Choose one of the following companies or select your own: Allstate, Cargill, Staples, or Microsoft.

5. Today’s business leaders must guide their employees and organizations through the changes brought about by technology, marketplace demands, and global competition. Choose a forprofit or not-for-profit organization and provide one example for each of the specific changes brought about by: (a) technology, (b) marketplace demands, and (c) global competition.

Case 1.1

Mars Expands Its Sweet Line of Business

Stricken with polio as a child, Frank C. Mars learned the art of hand dipping chocolate in his mother’s kitchen. Today, the company’s brands include its iconic M&s, LifeSavers, Skittles, and Juicy Fruit and Orbit chewing gum. Mars recently made it on to Fortune’s roster of 100 Best Companies to Work For. In its fourth generation of leadership, the privately held company, which boasts 5 percent annual turnover, is known for its internal advancement and reward opportunities. They develop and encourage cross-division talent and expect employees to follow their five guiding principles of quality, responsibility, mutuality, efficiency, and freedom.

Answers to Questions for Critical Thinking

1. Discuss how guiding principles, internal advancement, and reward opportunities such as those practiced at Mars can help with employee retention. Guiding principles, internal advancement, and reward opportunities such as those practiced at Mars help with employee morale, retention, and productivity. Tying employee compensation to company financial results allows employees to be given goals which match revenue targets. In addition, ongoing employee evaluations against company goals are proven to produce better results. When employees are aware of the impact of their work on the company’s results, improvements can be made. It also creates better transparency.

2. Discuss the pros and cons of company secrecy. Are there certain situations in which a company benefits by keeping information confidential? Are there other situations in which secrecy can be harmful? Using examples, please explain. Many employees in job search mode may conduct research by looking at the criteria used to determine what makes a company a “Best Company.” Compelling to a prospective employee may be, in addition to a fun place to work, the internal advancement and reward opportunities and transparency offered by Mars. If company opens the books and info to employees they feel part of the company and are in the middle of success or failure.

Jack Ma of Alibaba Helps China Breathe Easier

A little over two decades ago, Jack Ma founded Alibaba Group in his Hangzhou apartment. Alibaba includes an online payment system, Alipay, and two e-commerce sites, Tmall and Taobao. Valued at close to $500 billion, Alibaba had the largest ever U.S.-listed initial public offering (IPO) to date the first sale of stock by a company to the general public. As a result of its IPO, Alibaba has become far better known in the United States. Similarly, the company has been described as a Chinese combination of eBay, Amazon, and PayPal. Recently, he set up a way to give a certain percentage of his wealth to causes related to health care, education, and the environment in China.

Answers to Questions for Critical Thinking

1. A philanthropist is someone who donates time and money to charitable causes. Why do you think there might be more challenges for philanthropists in China as compared to those in the United States?

China doesn’t have the history of giving like the U.S. does – philanthropy stagnated after the 1949 communist revolution when private philanthropic initiatives and NGOs were shut down . Scandals have undermined giving efforts. Attitudes towards wealth are also varied, with resentment of those amassing large fortunes. There is criticism, skepticism, and suspicion.

2. What are some of the issues that can arise in a country experiencing unpredictable economic prosperity among segments of its population?

Economic prosperity is rising in China as a result of the boom in technology. Having said that, there is an imbalance among segments of its population. China is home to the largest number of internet users and the fastest growing e-commerce market. Many Chinese wealth holders have made their fortunes in the technology sector. It’s no surprise then that technology is driving an increase in charitable giving. Issues that can arise with unpredictable economic prosperity may center around how giving is done, how much is given, and to which types of causes.

Case 1.2

Case 1.3

TripAdvisor: “Speed Wins”

At TripAdvisor, a global travel website with user-generated reviews and opinions, competition within the global travel industry remains cutthroat and intense. Steve Kaufer is the co-founder and CEO of Trip Advisor, and he taped on his office door is a sign that reads “Speed Wins.” Kaufer’s goal is for his customers to bring the TripAdvisor experience with them on their trip.

Answers to Questions for Critical Thinking

1. How does TripAdvisor use the four basic inputs of an economic system?

The four basic factors of production are land, labor, capital, and entrepreneurship.

a. Land: TripAdvisor as a company has its building sites, land etc. it uses for the business.

b. Labor: TripAdvisor is acutely focused on its hiring practices to ensure a cultural fit. As part of its “Speed Wins” culture, TripAdvisor hires people who wish to get out of a larger bureaucratic company environment as well as those with a predisposition to moving quickly. The company develops its employees to take knowledge and convert it into interesting user experiences not only for its travelers, but for business advertisers, too.

c. Capital: Capital includes technology, tools, information, and physical facilities. TripAdvisor has adapted to the changing nature of today’s business and technology environment. As internet usage has moved to a mobile device, TripAdvisor has invested in indestination functionality for their products, so that people can use the application not just to plan their trip, but also in short bursts while they are moving around and using their mobile phones. Kaufer’s goal is for his customers to bring the TripAdvisor experience with them on their trip. In addition, virtual reality and virtual tours where travelers can experience places before they even go are becoming part of what Kaufer refers to as his company’s universal value proposition that which allows travelers the ability to share their opinion thereby allowing other travelers the ability to make their decisions based on those opinions.

d. Entrepreneurship: TripAdvisor began by accidental discovery in 2000 when Steve Kaufer, a classic entrepreneur, was planning a vacation to Mexico for his family. During the planning process Kaufer’s wife realized her husband’s frustration with unbiased hotel reviews and the lack of user-generated information and feedback from travelers. Sure, plenty of breathtaking pictures and beautifully printed and designed brochures from travel agents were available. Rather than reading what hotel operators were saying about themselves, what Kaufer really wanted to know was what customers were saying about the hotels. This lack of information is what ultimately led Kaufer to create a firsthand, user-generated feedback system and platform.

2. Steve Kaufer, an entrepreneur, has said, “I watch with amazement at how some of the companies these days start up without much of a notion of how they’re going to make

money. But just if they get a lot of eyeballs, if they got a lot of usage, they’ll figure it out. I’m the first to say that several companies have figured that out in spades, and they’re wonderfully successful. Amen. I want to remind people, that is the exception to the rule.”

From what you can tell, how has Kaufer made TripAdvisor a success?

Kaufer has made TripAdvisor a success through his mantra of speed wins. TripAdvisor boasts over 350 million reviews and opinions, 60 million photos from travelers worldwide, and more than 6.5 million hotels, bed and breakfasts, specialty lodging, vacation rentals, restaurants, and attractions in 136,000 destinations. With those kinds of numbers, TripAdvisor remains focused on creating value for its users and, using its global footprint, to continuously acquire new knowledge of what users respond to most favorably.

3. How has the company earned the reputation as the most recognized, used, and trusted travel website? What are the admirable traits of TripAdvisor? (You may want to go to the TripAdvisor.com website to learn more about the company.)

The company has earned the reputation as one of the most highly recognized, used, and trusted travel websites in the global travel industry. TripAdvisor’s customers are thrilled with the company’s quick and constant improvements and new features on its site that services hundreds of millions of visitors each month in more than two dozen languages. The company remains focused on the quality of what is produced and what goes on its site, and with volumes of information, its meticulously built infrastructure must support it well and accurately.

4. This chapter discusses that at the heart of every business endeavor is an exchange between buyer and seller. How does this relate to TripAdvisor’s business?

TripAdvisor remains focused on creating value for its users and, using its global footprint, to continuously acquire new knowledge of what users respond to most favorably. TripAdvisor’s customers are thrilled with the company’s quick and constant improvements and new features on its site that services hundreds of millions of visitors each month in more than two dozen languages. The company remains focused on the quality of what is produced and what goes on its site, and with volumes of information, its meticulously built infrastructure must support it well and accurately. TripAdvisor has also adapted to the changing nature of today’s business and technology environment. Kaufer’s goal is for his customers to bring the TripAdvisor experience with them on their trip.

Collaborative Learning Exercises

1 - Business as a Career

Learning Objective: 1

Purpose: To help students connect their own interests and desires with the class material, and to allow them to relate to each other on a personal level.

Background: Introductory business students come from a wide range of backgrounds, some with focused goals and broad experience, and others with little interest and even less knowledge. This exercise is designed to help them understand how business can be personally relevant from a career standpoint.

Relationship to Text: Business and Not-for-Profit Organizations – Learning Objective 1

Estimated Class Time: Approximately 20 minutes

Preparation/Materials: Paper and pen/pencil

Exercise: Divide your class into groups of three to five students.

Direct students to write their names on their papers and jot down three things that they love to do. Encourage them to be honest, while keeping it clean (listening to music, for example, is perfectly fine).

Ask them to pass their papers to another student in their group.

This is the creative part: Ask students to choose one of the passions on the list they received and to write down five business careers both for-profit ventures and not-for-profit ideas that could relate to that area of interest. (For example, hanging out with friends and going to parties could translate into a career in event-planning; taking care of your dogs and cats could mean a career with a not-for-profit veterinary association or humane society.)

Return papers to original students and allow a moment or two for the groups to read their papers and discuss among themselves.

Reconvene to discuss as a class. Possible topics:

• Were there any surprises? (Typically, there are several.)

• Ask for sample passions. Brainstorm additional career possibilities for each.

• Ask for volunteers to share their passion and related career option.

2 – The Green Advantage

Learning Objective: 4

Purpose: To understand the emphasis in our society for companies to be more environmentally aware and more environmentally friendly with regard to their products and/or production processes.

Background: The factors of production consist of natural resources, capital, human resources entrepreneurship, and according to some experts, knowledge. Through the factors of production, the creation of wealth occurs.

Relationship to Text: The Green Advantage – Learning Objective 4

Estimated Class Time: Less than 10 minutes

Preparation/Materials: None needed

Exercise: Can you name ten business opportunities or business types that are the result of green initiatives? Compare and contrast answers between groups to determine the number of unique answers found. A few might include: solar panels, hybrid and electric automobiles, green cleaning products, and so on.

3 – The Entrepreneurship Alternative

Learning Objective: 3

Purpose: To brainstorm about the qualities of successful entrepreneurs.

Background: More and more business students are interested in starting their own companies. This quick discussion exercise is designed to tap into that interest and to encourage potential entrepreneurs to develop the qualities that would facilitate their success.

Relationship to Text: The Entrepreneurship Alternative – Learning Objectives 3 and 6

Estimated Class Time: Less than 10 minutes

Preparation/Materials: None needed

Exercise: The following Winston Churchill quotation is clearly relevant to aspiring entrepreneurs: “I am certainly not one of those who need to be prodded. In fact, if anything, I am the prod.”

Simply sharing this quotation usually sparks discussion, but if not, here are some questions to stimulate thinking:

What did Winston Churchill mean by these words?

• How many of you consider yourselves the “prod”?

• Is it possible or even desirable to learn to become the “prod”?

• How does this relate to starting your own business?

• How could it help? How could it hurt?

4 - History of Business

Learning Objective: 4

Purpose: To encourage critical thinking about the evolution of business in the United States, and its continued change.

Background: The rise of business clearly led the United States to its powerhouse economic status. Although each era has fueled prosperity for many, some have paid a significant price. Students seem to appreciate the opportunity to identify which group has paid the price for change and growth within the overall economy.

Relationship to Text: Seven Eras in the History of Business – Learning Objective 4

Estimated Class Time: Approximately 10 minutes

Preparation/Materials: None needed

Exercise: As you review each of the seven eras, ask students to identify the potential downside of each stage in the evolution of U.S. business. (Afterwards, ask if they can think of current businesses that may show traces of these periods or similarities in philosophy as to their management style, treatment of employees, and methods of operation.) Possibilities include:

Colonial period: Business was limited to those who could produce crops or manage a skilled trade, and goods needed to be hauled to the cities to be sold.

Industrial Revolution: Mass movement to cities led to major health issues for people accustomed to the fresh food and regular exercise associated with agrarian life.

Age of Industrial Entrepreneurs: Although this period created enormous wealth, significant problems began to fester: unsafe working conditions, child labor, violent union-busting, and environmental degradation.

Production era: Highly specialized manual labor especially with the emergence of the assembly line led to the standardization of mind-numbing jobs, still in existence today.

Marketing era: As businesses aimed to provide the best consumer value, overseas sweatshops began to emerge as a significant problem for several high-profile brands (e.g., Nike).

Relationship era: Small businesses may not be able to secure the attention that they need to grow from their business partners.

Social era: a new approach to the way businesses and individuals interact, connect, communicate, share, and exchange information with each other in virtual communities and networks around the world.

Other discussion possibilities:

• How did one era lead to the next?

• What is the next step in the evolution of business?

5 – What Makes a Company Admired?

Learning Objectives: 7

Purpose: To highlight the need for businesses to develop and sustain a world-class workforce.

Background: As today’s’ employers recognize that their workforce can provide a significant competitive advantage, many are taking proactive steps to nurture their employees.

This discussion exercise is designed to highlight those companies both as potential employers and as examples for aspiring entrepreneurs. A secondary goal is to underscore the importance of creating positions that employees find personally meaningful.

Relationship to Text: What Makes a Company Admired – Learning Objective 7

Estimated Class Time: Approximately 10 minutes

Preparation/Materials: None needed

Exercise: Every year, Fortune magazine compiles a list of the top 100 companies to work for. In a recent year, this list included the following companies that would probably be familiar to most students:

1. Apple Inc (NYSE: AAPL ) –

2. Amazon.com, Inc. (NASDAQ: AMZN

3. Alphabet Inc (NASDAQ: GOOG , GOOGL )

4. Berkshire Hathaway Inc. (NYSE: BRK.A , BRK.B )

5. Starbucks Corporation (NASDAQ: SBUX )

6. Walt Disney Co (NYSE: DIS )

7. Microsoft Corporation (NASDAQ: MSFT )

8. Southwest Airlines Co (NYSE: LUV )

9. FedEx Corporation (NYSE: FDX

10. JPMorgan Chase & Co. (NYSE: JPM )

Discussion questions could include:

• Did any of these companies come immediately to mind when you think of admired companies?

• Did any surprise you?

• What are some of the attributes that make a company admired?

• Why should a company strive to satisfy its employees?

• All of these firms have built top-quality, high-profile brands. What else do they seem to have in common?

Ask students to cite positive and negative examples from their own experience. Is a small or large company more likely to be “good to work for”? Why?

Source: “World’s Most Admired Companies,” FORTUNE, February 8, 2018, http://fortune.com, accessed October 18, 2018.

6 – Factors of Production

Learning Objective: 2

Purpose: To stimulate ideas and discussion about why some countries have enjoyed great wealth and economic growth, whereas others have struggled or have great societal poverty.

Background: This activity is designed to enable students to better understand the connection between the four factors of production and the economic success of a society and country.

The five factors of production refer to the four basic inputs: land, labor, capital, entrepreneurship, and knowledge..

Note: This exercise is best performed in a room or computer lab in which students have access to computer and Internet use.

In the event this is not feasible, then the instructor should:

A) Provide “printouts” for each assigned country for students to review and discuss.

B) Alternatively, teams can be assigned “homework” to conduct their own research then have the team discussion the following class meeting.

Relationship to Text: Factors of Production – Learning Objective 2

Estimated Class Time: This activity requires a presentation by each team for an estimated time of 15 minutes per team, so total class time will vary by class size.

Preparation/Materials: Web sites as noted

Exercise: Assign students to pairs or teams. Assign each pair/team a country (a country other than the United States is recommended so that students will need to learn how to analyze new information and develop their research skills).

Note: The exercise is more provocative for discussion if a mix of more successful growing economies and poorer countries is assigned to the class. Assignments might include one or more of the fast growing “BRIC” (Brazil, Russia, India, and China) countries, as well as struggling countries (such as Liberia, Guatemala, Somalia, Afghanistan, Palestine, etc.).

Share the following guidelines for this exercise:

Students should refer to two Web sites for their research.

The first is the Central Intelligence Agency (CIA) World Factbook, a comprehensive resource containing a wide variety of information on every country in the world:

https://www.cia.gov/

The second resource students can use is NationMaster.com, which provides a wealth of statistics and information (including rankings) on countries, gleaned from many varying databases:

http://www.nationmaster.com/

Each team should research the factors of production in the assigned country.

Examine areas such as infrastructure, size of the population, education levels, types of crops and agriculture, and other natural resources, etc. What conclusions can they draw from their research? Each team can present its findings.

The instructor should provide incentives to make this a lively exercise. Perhaps each team member of the winning team concept receives three bonus points for the best concept and another three bonus points is awarded for the best and most creative name. It should be possible for the same team to “win” both the concept and name bonuses. This activity generates lively discussion and student involvement.