LECTURER: JOHN DOE

BUSINESS 101
INTRODUCTORY ROUND

Who
Whoare
areyou?
you?
− Name
−- Name
Employer
−- Employer
Position/responsibilities
− Fun Fact
- Position and responsibilities
− Previous knowledge? Expectations?
- Interesting fact
- Previous knowledge?
Expectations
TOPIC OUTLINE

Businesses and Their Environment 1

Types of Business Organization 2

Management and Structure of Business 3

Production of Goods and Services 4

Marketing of Goods and Services 5

TOPIC OUTLINE

Management of Labor
6

Accounting in Business 7
UNIT 1

BUSINESSES AND THEIR ENVIRONMENT

EXPLAIN SIMPLY

1. What types of common business concepts exist in the

global marketplace?
2. Which four economic business models are most
widely used?
3. How does the dynamic business environment impact
institutions ?
STUDY GOALS

We will learn…

− … what the purpose of having clearly defined goals is.

− … why comparing the characteristics of global economic
systems is important in the global marketplace.
− … how to describe today’s dynamic business environment and
its impact on organizations.
WHAT IS A VISION AND MISSION?

A businesses’ vision statement is a description of what an

organization hopes to accomplish long-term, generally in a two-to-
ten-year timeline.

The mission statement defines the type of business an institution is

in, why is exists, and the purpose it serves.

Source of the text: Corporate Finance Institute, n.d.-a, n.d.-b

BUSINESS GOALS
Every business needs a specific
set of goals and objectives to
follow. These goals and
strategies are derived from the
organizational vision and
mission. These decisions
directly impact commerce and
a firm’s ability the succeed or
fail.
Source of the text: Tesla Inc., 2021
Tesla vision example:
"to create the most
compelling car company of
the 21st century by driving
the world's transition to
electric vehicles."
Tesla mission example:
“to accelerate the world's
transition to sustainable
energy.”
ORGANIZATIONAL TYPES

− A firm such as Tesla aims to earn

revenues and is therefore referred
to as a for-profit firm. Tesla also
has an obligation to shareholders
(in the form of dividends) as it is a
publicly traded organization on
the NASDAQ stock exchange.

− For-profit organizations tend to

have more risk than other entities,
but have greater upside (reward)
too.

Source of the text: NASDAQ Stock Exchange, 2022

Source of the image: Power Point Stock Images
RISK VS. REWARD

WHAT EXAMPLES
Higher risk can =
higher return
Start-ups

RISK Cryptocurrency REWARD

Stocks

TYPES OF RISK
Bonds
Volatility

Savings accounts

Inflation

?
 TYPES OF ORGANIZATIONAL ENTITIES CONT.
NOT-FOR-PROFIT
Types of institutions that
FOR-PROFIT
Created with the goal of do not earn profits for the
conducting revenue company’s owner, or
generating activities in owners. Money received
the form of profits. and earned is used to
achieve organizational
objectives and
operational activities.
Source of the text: Course Book DLBBAB01_E, 2021, p. 15
GOVERNMENT BUSINESS
PUBLIC / GOVERNMENT
ENTERPRISES (GBE)
Institutions or entities
A hybrid organization that
that are publicly funded,
has both features of a
and/or controlled by the
business and a public
government.
institution.
ECONOMIC SYSTEM VS. ECONOMICS

An economic system consists of resource allocation, production, and

distribution of goods and services within a society or specific
geographic area.

The term economics is a social science concerned with the

production, distribution, and consumption of goods and services.

Source of the text: Cource Book DLBBAB01_E, 2021, p. 16

 GLOBAL ECONOMIC SYSTEMS

SOCIALISM
Basic industries such as
MIXED ECONOMY
railroads and utilities are
CAPITALISM COMMUNISM There is private ownership
owned by the
Businesses are privately The government owns all of land and businesses,
government. High
owned with minimal or most enterprises. but the government
taxation exists as the
government controls some enterprises.
government redistributes
interference. The private sector is
income from successful
typically large.
private businesses and
entrepreneurs.

Source of the text: Course Book DLBBAB01_E, 2021, p. 21

MACROECONOMICS VS. MICROECONOMICS

MACROECONOMICS

MICROECONOMICS
Employment
/unemploy-
ment rates Aggregate Product
demand (AD) supply
Entire and inflation
economy Individual
(GDP) markets Individual
purchasing
behavior

Source of the text: Course Book DLBBAB01_E, 2021, p. 25

THE DYNAMIC BUSINESS ENVIRONMENT

The dynamic business environment is an ever-changing

complex landscape in which an organization operates. A wide
variety of factors exist in the environment which form and shape a
firm’s character.

− business environment
made up of internal and
external factors

Source of the image: Power Point Stock Images

THE DYNAMIC BUSINESS ENVIROMENT CONT.

Economic influences Technological

factors

Technological Environmental Political and legal

factors influences influences

Social factors Demographic factors

Source of the text: Course Book DLBBAB01_E, 2021, pp. 27-30

REVIEW STUDY GOALS

We have learned…

ꟷ … what the purpose of having clearly defined goals is.

ꟷ … why comparing the characteristics of global economic
systems is important in the global marketplace.
ꟷ … how to describe today’s dynamic business environment and
its impact on organizations.
SESSION 1

TRANSFER TASK
TRANSFER TASKS

Case Study 1 – SpaceX Launch

− Please work in groups of 4-6 people

and use a flip chart or PPT.
− What components make up a
successful mission and vision
statement?
− What makes SpaceX successful in
2022 and beyond?

Source of the image: Power Point Stock Images

TRANSFER TASKS

Case Study 2 – The Business Environment

− Continue working in groups of 4-6 people and watch the

following video.
− What is the dynamic business environment?
− What characteristics are important to analyze in terms of
internal and external factors?
− Which internal and external factors do you think most
impact SpaceX?

HTTPS://WWW.YOUTUBE.COM/WATCH?V=Q1YW7TCHSC8
TRANSFER TASK
PRESENTATION OF THE RESULTS

Please present your

results.
The results will be
discussed in plenary.
LEARNING CONTROL QUESTIONS

1. Which of the following is an entity or activity that conducts

unified sets of tasks and assets, and which can be managed
with the intent of creating products or services for clients,
investment income generation, or income generation from
other typical tasks?
a) Not-for-profit
b) Business
c) Accounting
d) ROI (return on investment)
LEARNING CONTROL QUESTIONS

2. A country’s structure that encompasses laws,

policies, and procedures that have been set up by
the government is its...
a) Economic system
b) Economy
c) Policies
d) Procedures
LEARNING CONTROL QUESTIONS

3. What economic system is predominantly run by the

government and uses a centralized system?
a) Capitalism
b) Socialism
c) Communism
d) Mixed economy
LIST OF SOURCES

Corporate Finance Institute (n.d.-a). Mission statement. https://corporatefinanceinstitute.com/resources/knowledge/strategy/mission-statement/

Corporate Finance Institute (n.d.-b). Vision statement. https://corporatefinanceinstitute.com/resources/knowledge/strategy/vision-statement/
NASDAQ Stock Exchange (2022). Tesla Inc. https://www.google.com/finance/quote/TL0:ETR?sa=X&ved=2ahUKEwiv4IS-mbH2AhWsk4kEHZSmBl8Q3ecFegQIERAc
Tesla (2021). About Tesla. https://www.tesla.com/about/
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