Professional Documents
Culture Documents
CH 01
CH 01
Planning A Business
Introduction to
Jeff Madura
Business
3e
Organization of a Business
12
Learning Goals
Identify
13
Business Defined
A business is an enterprise that
provides products or services
desired by customers.
14
15
Business Decisions
16
Key Stakeholders
Owners
Entrepreneurs
Co-owners
Stockholders
Creditors
Employees
Managers
Suppliers
Customers
17
Exhibit 1.1
18
a competitive advantage.
Differentiate the product or service
from competitors.
Determine necessary resources.
Assess feasibility of the idea.
19
e-business
business online
110
Success Stories
Dominos Pizza
Managhans bought bankrupt pizza parlor
Started with little funding
Now generates sales of $1 billion per year
Jeremys Micro Batch Ice Cream
Applied microbrewery concept to ice cream
Makes ice cream in small batches, sold in limited
editions
Glow Dog, Inc.
Sells light-reflective clothing for pets
After two years, average annual sales of $1 million
Copyright 2004 South-
111
Lessons to Remember
Successful
Some
112
Impact of Technology
Technology
defined
technology
113
Impact of Technology
E-business
or e-commerce
114
Successful E-Businesses
Started out small
Created to sell a product or service that
was not offered by competitors
Transformed how traditional firms
conducted business
115
E-Business Examples
Amazon
Online seller of books, music and other products
Low overhead costs allow price discounting
Yahoo!
Internet search engine and the most visited site on
the Web
Offers variety of services - free email, web page
hosting, custom-designed start-up pages
Generates revenue by selling advertising
eBay
Online auction service
116
Management
Means by which employees and other resources
are used by the firm
Marketing
Means by which products and services are
developed, priced, distributed, and promoted to
customers
Finance
Means by which firms obtain and use funds for their
business operations
Copyright 2004 South-
117
systems
118
Exhibit 1.4
119
Common Business
Decisions
Management
Decisions
120
Common Business
Decisions
Marketing
Decisions
121
Common Business
Decisions
Finance
Decisions
122
A Business Plan
Detailed
business
Description of the product or service
Types of customers the business would
attract
Competition
Facilities needed for production
123
Developing a Business
Plan
Assess
Economic environment
Industry environment
Global environment
Develop
Management Plan
Organizational Structure
Production
Human Resources
Copyright 2004 South-
124
Developing a Business
Plan
Marketing Plan
Target Market
Product Characteristics
Pricing
Distribution
Promotion
Financial Plan
Financing
Feasibility
125
Online Resources
Advice
Options
Planning Software
126
revenue
Potential demand for product or
service
Potential expenses
Profit potential
127
Exhibit 1.6
128
Exhibit 1.7
129