Introduction to Business

GENERAL OBJECTIVES Preparing an excellent way

to become more comfortable
with higher/further
Providing a profeesional business
comprehensive and up-to- Administration learning
date the subjects of
Applying the
Business Administration
concepts & ideas
thru. terminologies,
presented to any of
professionals both Further Learning the more detailed
academic & practical 6
business format &
aspects 1 5
Business plan
evaluating a real-life
Concepts one
Guidelines

Macro-economics:
Practical
Management, 2
Application Applications
Production, 4 Demonstrating the ways
Investment, 3 to work in a real-life
Strategic I2B
Micro-business: business
Approach
CSR,
Foreign trade,
Marketing,
Human resources, Apply appropriate business
Finance... theories, concepts, frameworks
to generate effective &
efficient business models.
LEARNING OUTCOMES

Preparing a profound brand

management knowledge to be
“potential business’ professionally
Understanding and
explaining the business
concepts (Economy,
Management, Marketing,
HR, Finance & etc). Professionals Designing, building,
6 measuring and
1 5 managing a business
Theory Attitude over time and space

Grasing the steps to 2

Practical
build, operate & manage Key Knowledge
Applications
a start-up with 4
international standards 3 Build long-term
Analytic Skils business plans/
strategies & tactics for
businesses in accordance
Analyzing a given firm’s past with other courses and
investment to build a particular knowledge.
recommendations to the firm
THE OVERAL INTRODUCTION TO
BUSINESS
• Syllabus
• 2 credits/30 periods, 2hr
per week
• 12 academic weeks &
03 self-teaching/moodle
• TextBook: William G,
Nickel, James Mc
Hugh, “Understanding
Business”, 11ed, 2020,
McGraw Hill
• Ref. Books: Ian
McKenzie , “English
for Business Studies”,
3rd ed. 2010,
Cambridge Press”
• Economics book!
Others, Q &As
• 4 Oct 2021 starting
Discussion & ending
6 Dec/2021
1 5
Brief Syllabus Milestone
Moodle - based
2 • All documentary are
applications
Textbook 4 presented on Moodle
3 course learning
Evaluation
• Lectures
Final Exam format
• Assignements, Excercises
• Report
• Project
• Group’s Final Report/Proposals ( max. 03
students/group )
• Length: 3500-5000 max.
• Topic/project : Optionals in Economics, Business,
Administration, Marketing, Finance, Logistics, HRs…
• Submitition: Moodle with Turnitin Checking < 25%
 ASSIGNMENT
& TESTING FORMS

Group Work
Written Report (3500 - 5000 words)
Pair-work, Oral Presentation (week No. 13-15-17)
Open Book, 30 minutes Weight: 10%
02 times/total course
T/F, Matching Forms 1 3
MCQs Quizzes Semi / Final
Group Project
Weight: 5%

2
Mid term Test

Individuals,
Closed Book, 90 minutes
01 time/total course
T/F, Matching/ MCQs/ Short Q/As
Case study Solution
Weight: 5%
 TEXT BOOK
& TEACHING AIDS
Senimar/Workshop/Guest
Speakers or Field trip as delegated
by Academic Admind / FBA Dept.
(if any)
• William G, Nickel, James
Mc Hugh, “Understanding
Business”, 11ed, 2020, Moodle/Turnitin
Scientific
McGraw Hill Seminar Powerpoint/Excel/Word
• Economics book! 1 5 Others
6
Text Book Software

2 Case study & Best

Ian McKenzie , “English for Readings
Business Studies”, 3rd ed. 2010,
3
Cambridge Press”
Exercises
Exercises(Group work)
Practice
4
07 Mini case study
& 01 Project Proposal
Sample for references or in
class debate
 TIMELINE
WEEK AGENDA YOUR WORKS
1 SUPPLY AND DEMAND
2 EXCERCISES FOR SUPPLY AND DEMAND Do homeworks
3 COST AND PRODUCTIONS
4 EXERCISES Do homeworks
5 4 TYPES OF MARKET COMPETITION
6 EXERCISES Do homeworks
7 EXERCISES Do homeworks
8 ENTREPRENEURSHIP AND STARTING A SMALL BUSINESS
9 IDEA EVALUATION
10 PATHWAY FOR DOING BUSINESS
11 OPPORTUNITIES EVALUATION
12 GENERAL MARKETING
13 SELF-STUDY & REPORT WRITING
14 SELF-STUDY & REPORT WRITING
15 SUBMIT FINAL REPORT
WEEK 1: The Market Forces of
Supply and Demand
 Introduction
• Economics: Microeconomics and Macroeconomics
• Micro-> consumer behavior and firm behavior
• Macro-> study economic system as a whole and
how government use their policies to manage
– Fiscal policies: tax and government expenditure
– Monetary policies: money supply, interest rate and
inflation
• Solve the problems between scarce resources and
human needs

11
• What should be produced?
• How and where be produced?
• Who get what produced?

12
 What is a Market
• A market is a group of buyers and sellers of
a particular good or service.
– The buyers (as a group) determine the demand
for the product
– The sellers (as a group) determine the supply
for the product

13
 Demand

• The quantity demanded of any good is the

amount of the good that buyers are willing and
able to purchase.
• Law of demand: the claim that the quantity
demanded of a good falls when the price of the
good rises, other things equal

14
 The Demand Schedule

• Demand schedule: PriceQuantity

a table that shows the of Phos
relationship between the of demande
price of a good and the Phos d
quantity demanded $0.00 16
1.00 14
• Example:
2.00 12
Helen’s demand for Phos.
3.00 10
4.00 8
5.00 6
6.00 4

15
 Helen’s Demand Schedule & Curve

Price of PriceQuantity
Phos of Phos
$6.00 of demande
Phos d
$5.00
$0.00 16
$4.00
1.00 14
$3.00 2.00 12
$2.00 3.00 10
$1.00 4.00 8
5.00 6
$0.00
0 5 10 15 Quantity 6.00 4
of Phos

16
 Demand Curve Shifters
• The demand curve shows how price affects
quantity demanded, other things being equal.
• These “other things” are non-price
determinants of demand (i.e., things that
determine buyers’ demand for a good, other
than the good’s price).
• Changes in them shift the D curve…

17
Demand Curve Shifters: # of Buyers
• Increase in # of buyers
increases quantity demanded at
each price, shifts D curve to the
right.

18
 Demand Curve Shifters: # of Buyers

P Suppose the number

$6.00 of buyers increases.
Then, at each P,
$5.00
Qd will increase
$4.00 (by 5 in this example).
$3.00

$2.00
$1.00

$0.00 Q
0 5 10 15 20 25 30

19
Demand Curve Shifters: Income

• Demand for a normal good is positively

related to income.
– Increase in income causes
increase in quantity demanded at each price, shifts D
curve to the right.

(Demand for an inferior good is

negatively related to income. An
increase in income shifts D curves for
inferior goods to the left.)

20
 Demand Curve Shifters: Prices of
Related Goods

• Two goods are substitutes if

an increase in the price of one
causes an increase in demand for the other.
• Example: pizza and hamburgers.
An increase in the price of pizza
increases demand for hamburgers,
shifting hamburger demand curve to the right.
• Other examples: Coke and Pepsi,
laptops and desktop computers,
CDs and music downloads

21
 Demand Curve Shifters: Prices of
Related Goods

• Two goods are complements if

an increase in the price of one
causes a fall in demand for the other.
• Example: computers and software.
If price of computers rises, people buy fewer
computers, and therefore less software.
Software demand curve shifts left.
• Other examples: college tuition and textbooks,
bagels and cream cheese, eggs and bacon

22
Demand Curve Shifters: Tastes

• Anything that causes a shift in tastes toward a good will

increase demand for that good
and shift its D curve to the right.
• Example:
The Atkins diet became popular in the ’90s,
caused an increase in demand for eggs,
shifted the egg demand curve to the right.

23
Demand Curve Shifters: Expectations

• Expectations affect consumers’ buying

decisions.
• Examples:
– If people expect their incomes to rise,
their demand for meals at expensive restaurants may
increase now.
– If the economy sours and people worry about their
future job security, demand for new autos may fall now.

24
 Summary: Variables That Influence Buyers
Variable A change in this variable…
Price …causes a
movement
along the D curve
# of buyers …shifts the D curve
Income …shifts the D curve
Price of
related goods …shifts the D curve
Tastes …shifts the D curve
Expectations …shifts the D curve

25
 Supply
• The quantity supplied of any good is the
amount that sellers are willing and able to sell.
• Law of supply: the claim that the quantity
supplied of a good rises when the price of the
good rises, other things equal

26
 The Supply Schedule
• Supply schedule:
A table that shows the Price Quantity
relationship between the of of Phos
price of a good and the Phos supplied
quantity supplied. $0.00 0

• Example: 1.00 3
Starbucks’ supply of Phos. 2.00 6
3.00 9
4.00 12
5.00 15
6.00 18

27
 Starbucks’ Supply Schedule & Curve
Price Quantity
P of of Phos
$6.00 Phos supplied
$5.00 $0.00 0

$4.00
1.00 3
2.00 6
$3.00
3.00 9
$2.00
4.00 12
$1.00 5.00 15
$0.00 Q 6.00 18
0 5 10 15

28
 Supply Curve Shifters
• The supply curve shows how price affects quantity
supplied, other things being equal.
• These “other things” are non-price determinants of
supply. (“Non-price determinants of supply” simply
means the things – other than the price of a good –
that determine sellers’ supply of the good.)
• Changes in them shift the S curve…

29
Supply Curve Shifters: Input Prices

• Examples of input prices:

wages, prices of raw materials.
• A fall in input prices makes production
more profitable at each output price,
so firms supply a larger quantity at each price,
and the S curve shifts to the right.

30
Supply Curve Shifters: Input Prices

P Suppose the
$6.00 price of beef
falls.
$5.00
At each price,
$4.00 the quantity of
Phos supplied
$3.00
will increase
$2.00 (by 5 in this
$1.00
example).

$0.00 Q
0 5 10 15 20 25 30 35

31
Supply Curve Shifters: Technology

• Technology determines how much inputs are

required to produce a unit of output.
• A cost-saving technological improvement has
the same effect as a fall in input prices,
shifts S curve to the right.

32
 Supply Curve Shifters: # of Sellers

• An increase in the number of sellers

increases the quantity supplied at each
price, shifts S curve to the right.

33
 Supply Curve Shifters: Expectations
Example:
– Events in the Middle East lead to expectations of
higher oil prices.
– In response, owners of Texas oilfields reduce supply
now, save some inventory to sell later at the higher
price.
– S curve shifts left.
In general, sellers may adjust supply* when their
expectations of future prices change.
(*If good not perishable)

34
Summary: Variables that Influence Sellers

Variable A change in this variable…

Price …causes a
movement
along the S curve
Input Prices …shifts the S curve
Technology …shifts the S curve
# of Sellers …shifts the S curve
Expectations …shifts the S curve

35
 Supply and Demand Together

P
$6.00 D S Equilibrium:
P has reached
$5.00
the level where
$4.00 quantity supplied
$3.00 equals
quantity demanded
$2.00
$1.00
$0.00 Q
0 5 10 15 20 25 30 35

36
 Equilibrium price:
the price that equates quantity supplied
with quantity demanded
P
$6.00 D S
P QD QS
$5.00 $0 24 0
$4.00 1 21 5
$3.00 2 18 10
$2.00 3 15 15
4 12 20
$1.00
5 9 25
$0.00 Q
6 6 30
0 5 10 15 20 25 30 35

37
 Equilibrium quantity:
the quantity supplied and quantity demanded
at the equilibrium price
P
$6.00 D S
P QD QS
$5.00 $0 24 0
$4.00 1 21 5
$3.00 2 18 10
$2.00 3 15 15
4 12 20
$1.00
5 9 25
$0.00 Q
6 6 30
0 5 10 15 20 25 30 35

38
Exercises
THANK YOU FOR YOUR LISTENING !