Type:
Solution Manual
Resource:
Business in Action
Edition:
6th Edition
Author(s):
Courtland L. Bovee John V. Thill
Bovee/Thill, Business in Action 6/e Instructor’s Manual
Chapter 1 DEVELOPING A BUSINESS MINDSET Chapter Overview An introduction to business course offers something to everyone, from students who are still deciding whether business is the right major for them to workers who already have practical experience in the business world. This chapter introduces some fundamental concepts of business, including the definitions of business, major types of business as well as the positive and negative impact of business in society. It also addresses the multiple environments in which businesses exist and operate. Finally, it identifies the main functional areas of business, and explores various careers in the business world and the key success factors of such careers.
Chapter Outline I.
Understanding What Businesses Do A. A business (p. 3) is a profit-seeking organization that provides goods and services designed to satisfy customers’ needs 1. A company’s business model (p. 4) is an outline of how the business intends to generate revenue (money received through the sale of goods and services) 2. If expenses exceed revenue, the business makes a profit B. Businesses add value for customers by transforming lower-value inputs into higher-value inputs 1. Businesses seek a competitive advantage that makes its products more appealing than those of its competitors 2. Businesses make decisions involving some risk in anticipation of receiving future rewards C. Major types of businesses 1. Not-for-profit (nonprofit) organizations such as charities and universities do not have a profit motive 2. Good-producing businesses create value by making tangible goods. Goods-producing may be capital-intensive and this may be a barrier to entry (p. 6) 3. Service businesses (p. 4) create value by performing activities that deliver benefit to customers
II. Making the Leap from Buyer to Seller A. A business mindset (p. 6) considers decisions to be made and problems to be overcome before companies can deliver goods/services that satisfy customers’ needs B. Businesses contribute to society through: 1. offering valuable goods and services 2. providing employment 3. paying taxes
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Bovee/Thill, Business in Action 6/e Instructor’s Manual 4. contributing to national growth, stability and security C. Businesses can have negative effects on society such as: 1. generating pollution and creating waste 2. creating health and safety risks 3. disrupting community 4. causing financial instability III. Recognizing the Multiple Environments of Business A. The social environment (p. 10) consists of trends and forces in society at large, such as population trends 1. A company is responsible to its stakeholders (all those groups affected by its activities) B. The technological environment is comprised of forces resulting from the practical application of science to innovations, products and processes C. The economic environment (p. 11) encompasses conditions and forces that: 1. affect the cost and availability of goods, services and labor 2. shape the behavior of buyers and sellers D. The legal and regulatory environment is comprised of laws and regulations at local, state, national and international levels. E. The market environment is composed of: 1. a company’s target customers 2. buying influences that shape those customers’ behaviors 3. a company’s competitors IV. Identifying the Major Functional Areas in a Business Enterprise A. Research and development (R&D) (p. 12) is the functional area responsible for conception and design of products 1. Companies use information technology (IT) systems to promote communication and information usage B. Manufacturing, production and/or operations – the functional area charged with producing the goods and/or services of the company. It includes functions such as purchasing, logistics and facilities management C. Marketing, sales, distribution and customer support – customer-related functions that provide customers with the right product at the right price and place and then make sure customers have needed support and information D. Finance and accounting – responsible for all aspects of a firm’s finances, including financial planning, monitoring and reporting E. Human resources – responsible for the recruitment, hiring, development and support of employees F. Business services – other services performed by in-house staff, external firms or a combination of the two in areas such as law, banking and real estate V. Exploring Careers in Business A. Operations Manager/Operations management (p. 16) B. Human Resources Specialist C. Information Technology Manager (IT) D. Marketing Specialist E. Sales Professional F. Accountant G. Financial Manager
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Bovee/Thill, Business in Action 6/e Instructor’s Manual VI. Achieving Professionalism A. Professionalism (p. 18) is the quality of performing at a high level and conducting oneself with purpose and pride. B. Professionalism encompasses seven traits: 1. Striving to excel 2. Being dependable and accountable 3. Being a team player 4. Communicating effectively 5. Demonstrating etiquette (p. 20) 6. Making ethical decisions 7. Maintaining a confident, positive outlook
Classroom Activities Break-out Group Discussion: Why are you taking the course? Goal: Asks students to name the top three reasons they are taking this course in an effort to introduce students to each other and to better understand their background and motivations. Time Limit: 15 minutes. Details: 1. Break students into groups of five. (2 minutes) 2. Ask each group to come up with the top three reasons students are taking this introduction to business course, e.g. business majors deciding whether business is the right major for them, non-business majors seeking business knowledge, and workers looking for a theoretical foundation for their practical business experience, etc. Ask each group to finalize their top three reasons from notes and then elect group representatives/speakers. Use votes and tally if necessary. (10 minutes) 3. Ask representatives/speakers from each group to present their results to the whole class, either verbally or written (on the blackboard). (3 minutes) Summary: Instructor summarizes the top reasons that are common across groups, describes the various student segments and reassures them that the course has something to offer for everyone.
In-Class Activity: Career Track Options Goal: Ask students to vote on the seven types of career track options outlined in the section “Exploring Careers in Business” to determine which option is the most popular for the class as a whole. Have students discuss the pros and cons of the various options in order for them to understand that each option has its own advantages and disadvantages. Time Limit: 10 minutes.
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Bovee/Thill, Business in Action 6/e Instructor’s Manual Details: 1. On the blackboard, list the seven types of career track options as outlined in the section “Exploring Careers in Business” and assign a number (1 to 7) to each of the options. 2. Have students vote which option they are most interested in pursuing as a professional career by raising their hands. Make it clear before the vote that each student can only vote once. Then go through the career track options on the list from 1 to 7 and have students raise their hands when their favorite option is mentioned. Tally up the votes for each option. 3. Rank the seven options in order of popularity. Pick the most popular option first and ask students to name one or two pros and cons for that option. For instance, possible pros of the career option “Finance and Accounting” are “higher pay” and “more job security”, and possible cons are “math-heavy” and “boring”. Help students understand that even the most popular career options have disadvantages. 4. If time allows, pick the next most popular career track option(s) and brainstorm more pros and cons.
End-of-Chapter Chapter 1 Behind The Scenes Build a Band, Then Build a Business Critical Thinking Questions 1. Assume that ETH really was in it for the money and not the music. Would it still make sense to stick with an indie label, or should the band pursue a major label contract and all the potential marketing exposure that comes with it? Explain your answer. Yes, it would still make sense for ETH to stick with an indie label because in the new musical business environment, “the average independent musician sees more real cash from 10,000 independent sales than major artists see from a million sales”. Moreover, rather than relying on major labels to create marketing exposure, the ETC may utilize increasingly popular social networking sites such as Facebook and MySpace, other high-traffic sites and services such as YouTube, Twitter and iTunes as well as its own website to reach out to both existing and potential fans, and promote themselves in an efficient and low-cost manner. 2. Search online for “Enter the Haggis” and identify how many ways you can listen to the band’s music for free. Why is it in the group’s long-term interest to make its music available for free like this? Students’ responses will depend in large part on the material currently posted on the website. However, some of the key online sites/services students can listen to the band’s music for free may include: Twitter, Facebook, MySpace, YouTube, iLike, iTunes and last.fm. It is in the group’s long-term interest to make its music available for free like this because it will keep loyal fans happy and attract new fans. Such fans may decide to purchase songs in the future or purchase tickets to the band’s concerts and shows.
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