The Dynamic Business Environment Taking Risks and Making

* * * The Dynamic Business Environment: Taking Risks and Making Profits * * CHAPTER ** 1 * Nickels Mc. Hugh 1 -1

* * * Business & Entrepreneurship • • Business Profit Entrepreneur Match Risk With Profit • Revenue • Loss • Standard of Living/Quality of Life • Stakeholders • Nonprofit Organizations 1 -2

* * * Objectives of Business Survival Growth Profit Social Responsibility 1 -3

* * * Creating Wealth: Factors of Production • • • Land Labor Capital Entrepreneurship Knowledge 1 -4

* * * Ethics vs. Law • Ethics: Standards of moral behavior, that is : accepted by the society as right versus wrong. • Law: Rules that a particular country or : community recognizes as regulating the actions by its members and may enforce penalties if broken. 1 -5

* * * Cont. … A behavior may be legal but unethical A behavior may be illegal but ethical. Ethical and Legal Behaviors A behavior may be both legal and ethical. A behavior may be both illegal and unethical. 1 -6

* * * Business Environment 1 -7

* * * Economic & Legal Environment $ Minimum taxes and regulations $ Freedom of ownership $ Contract laws $ Tradable currency $ Elimination/minimization of corruption 1 -8

* * * Corrupt Countries Least Corrupt 1. Canada 2. Luxembourg 3. Netherlands Most Corrupt 1. Somalia 2. North Korea 3. Afghanistan As per 2015 Report 1. North Korea and Somalia (tied) 2. Afghanistan. 3. Sudan. Source: Transparency International, 2005; www. transparency. org 1 -9

* * * Technological Environment • Productivity • E-Commerce • Responsiveness to Customer 1 -10

* * * Competitive Environment • Customer Expectations • Restructure/Empower 1 -11

* * * Social Environment • Diversity/Multicultural • Aging/Graying of America • Two-Income Families • Single-Parent Families 1 -12

* * * 21 st Century Diversity Issues • Race • Age • Gender • Language • Ethnicity • Religion • Disability • Sexual Orientation Source: U. S. Equal Employment Opportunity Commission 1 -13

* * * Evolution of American Business • Agricultural/Manufacturing • Service Industries • Future? ? ? 1 -14

* * * • • Evolution of Bangladeshi Business Bangladesh followed a socialist economy by nationalizing all industries after its independence in 1971. It underwent a slow growth of producing experienced entrepreneurs, managers, administrators, engineers, and technicians from than. External markets for jute had been lost because of the instability of supply and the increasing popularity of synthetic substitutes. After 1975, Bangladeshi leaders began to turn their attention to developing new industrial capacity and rehabilitating its economy. In the mid-1980 s, there were encouraging signs of progress. Economic policies aimed at encouraging private enterprise and investment, privatizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated. Many new jobs - mostly for women - have been created by the country's dynamic private ready-made garment industry, which grew at double-digit rates through most of the 1990 s. Industries which have shown very strong growth since than include the pharmaceutical industry, shipbuilding industry, information technology, leather industry, steel industry, light engineering industry etc. 1 -15

* Corporate Social Responsibility * * • CSR is the Business’s concern for the welfare of the society. • Examples: Ø Grameenphone is committed to work closely with Bangladesh Government and concerned development agencies to achieve that target, with the aim to raise awareness and advocate for necessary policy reforms on HIV/AIDS through different communication channels. Ø To develop environment of Bangladesh Dutch-Bangla Bank t has taken tree plantation programs across the country. It also provides a lot of scholarship to underprivileged students for their education. It has given support many students for higher education. It also arranges Olympiad of Mathematics to develop students' mathematical knowledge. Ø Unilever limited implements many programs on public health. They already have taken initiative for free dental check up. They create consciousness among the rural people about Health by their many activities. 1 -16

* * * 4 Dimensions of CSR • Corporate Philanthropy: The dimensions of social responsibility that includes charitable donations. Ex. Microsoft employees have donated over $1 billion to charitable organizations since 1983. • Corporate Social Initiatives: Enhanced forms of corporate philanthropy directly related to the company’s competencies. Ex. BC Hydro has influenced many of its consumers to reduce their energy consumption through its Power Smart loyalty program. • Corporate Responsibility: The dimension of social responsibility that includes everything from hiring minority workers to making safe (FDA tested) products. Ex. Body Shop Beauty Products. • Corporate Policy: The dimensions of social responsibility that refers to the position a firm takes on social and political issues. Ex. Bayer says, ‘We are committed to integrity in business dealings – no corruption’.