Taking Risks and

Making Profits
within the Dynamic
Business
Environment
Group 9 : Pham Gia Linh – Vo Hoang Anh Khoa
 Revenues, Profits, and Losses

Revenues Profits
The total amount of money The amount of money a
a business takes in during a business earns above and
given period by selling beyond what is spent for
goods and services. salaries and other expenses
needed to run the operation

Losses
A loss occurs when a business’s
expenses are more than its revenues
The relationship between profit and risk

Profit and risk are positively related.

When the higher the profit, the

associated risk also increases
and vice versa.

In business there is no case of

low risk, high profit.

Standard of Living and Quality of Life
- The standard of living is the level of wealth,
amenities quality goods and necessities
available to given socioeconomic class or an
address area.
- Quality of life is a key measure of
happiness, an important prefix of many
financial valuation agencies. Factors that
play a role in building a quality of life are
appropriate personal changes, but we usually
include a financial security, job satisfaction,
family life, health and safety.
Responding to the Various
Business Stakeholders
- Stakeholders are all the people who stand
to gain or lose by the policies and
activities of a business and whose concerns
the business needs to address.
- They include customers, employees,
stockholders, suppliers, dealers (retailers),
bankers, people in the surrounding
community, the media, environmentalists,
competitors, unions, critics, and elected
government leaders
 Using Business Principles in Nonprofit Organizations

- Principles of business administration are the rules that guide the

standards of behavior that business owners and managers must
adhere to in
business administration process.

- A nonprofit organization is an organization whose goals do not

include making a personal profit for its owners or organizers.

- Nonprofit organizations often do strive for financial gains, but they

use them to meet their social or educational goals rather than for
personal profit.
The Importance of Entrepreneurs to the Creation of
Wealth
One is to rise through the ranks of a
large company.
Succeed
in
Busines
s
The other, riskier, but often more exciting, path
is to become an entrepreneur.
The Five Factors of Production

Land

Labor

Capital

Entrepreneurshi
p

Knowledge
 The Business Environment

1 2 3 4 5

The economic The technological The competitive The social The global business
and legal environment. environment. environment. environment.
environment.
 The Economic and Legal Environment
The effects of the economic environment and taxes on business

The economic environment has a great influence on the business

activities of enterprises, the factors affecting enterprises are the
Bank for payment, balance of payments, monetary policy, the rate of
fees for economic development. , tax policy, exchange rate and
unemployment rate, gross national GDP….
 The Technological How Technology
Environment Benefits Wokers and You

Since prehistoric times, -Better business.

humans have felt the need to -Be more efficient,
create tools that make work resource-saving, and
easier. The emergence of efficient in production.
technology has changed -Increase productivity.
business. Traders have used
information technology to
advertise and reach their
suppliers and customers.
 The Growth of E- Using Technology to Be
Commerce Responsive to Costumers

E-commerce is the act of Businesses use

buying and selling goods technology to meet the
directly. It has an important needs and desires of their
effect on business. customers.
.
 Competing by Competing by
The Competitive
Exceeding Customer Restructuring and
Environment
Expectations Empowerment
Some have found a To meet the needs of Today's customers want
competitive edge customers, firms must not only good quality at
by focusing on give their frontline low prices but great
quality. Companies workers. They also service as well. The
now have to offer must allow workers to business has become
both high-quality make other decisions more customer-driven,
products and good essential to producing not management-driven
value that is, high-quality goods and as often occurred in the
outstanding services. The process is past. Successful
service at called empowerment, organizations must now
competitive prices. and we'll be talking listen more closely to
about it throughout this customers to determine
book. their wants and needs.
 The Social Environment

The U.S population is going through major changes Managing Diversity

that are dramatically affecting how people live,
where they live, what they buy ad how they spend
their time. Furthermore, tremendous population
shifts are leading to new opportunities for some
firms and to declining opportunities for others. -
The Increase in the
Number of Older Citizens
People aged 65 to 74 are currenly the richest
demographic group in the United States. Therefore they
represent a lucrative market for companies involved
with food service, transportation, entertainment,
education, lodging, and so on. On the other hand,
retired people will be draining the economy of wealth.
Social Security has become a major issue. Soon, less
money will be coming into Social Security than will be
going out. The government will have to do st to make
up for the shortfall. In short, paying Social Security to
senior citizens will draw huge
Diversity has come to mean much more than
recruiting and keeping minority and female
employees. Legal and illegal immigrants have had a
dramatic effect on many regions and will continue to
do so as the government debates immigration
reform. Some local governments are making efforts
to adapt, including changing aigns, brochures, webs,
and doeems to include other languages. 
The Increase in the Number of Single-
Parent Families
It is a tremendous task to work full-time and raise a
family.
The Global Evironment
The global environment has an
important influence on business. It
surrounds all other environments.
War and Terrorism
War and terrorism affect business. It
both benefits and damages
businesses.
How Global Changes Affect
You
As businesses expand to serve global
markets, new jobs will be created in
manufacturing and service industries.
The Ecological
Environment
-Eco-environment is a matter of little
concern for businesses, so the
development of business has had a
grea
-The trend of saving energy and
producing products that are less
harmful to the environment is being
concerned.t impact on climate change
 Businesses in the United States have become
so productive that they need fewer workers The Evolution of U.S Business
than ever before to produce goods.
Agriculture is one of the largest and most
important industries in the United States.
Technology has increased productivity and
Progress in the Agricultural made farmers more efficient, allowing for larger
and Manufacturing farms. This trend has helped to reduce the
Industries increase in price of some foods for consumers,
but has also reduced the number of small,
familyrun farms.
Today, the fastest-growing firms provide services in
areas such as law, health, telecommunications,
entertainment, and finance. Progress in service
Industries
Retailers like American Eagle are part of the
service sector. Each new retail store can create
managerial jobs for college graduates.