Taking Risks and Making Profits Within the Dynamic Business Environment

In: Business and Management

Submitted By patlakhan
Words 1673
Pages 7
Chapter 1 (page 4-19)
Taking Risks and making Profits within the Dynamic Business Environment

Business: Any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the business operation. Goods are tangible products such as computers, food, clothing, cards appliances and services include intangible products which cannot be held in your hand such as education, health care, insurance, recreation, travel and tourism. Entrepreneur is a person who risks time and money to start and manage a business. (Sam Walton started Wal Mart, Bill Gates started Microsoft) Revenue is the total amount of money a business takes in during a given period by selling goods and services. Loss occurs when business expenses are more than its revenues. Risk is the chance an entrepreneur takes of losing time and money on business that may not prove profitable. Higher the amount of risk, higher is the profit.
Standard of Living: The amount of goods and services people can buy with the money they have. Business provides employment, employees pay tax and the tax is used by the government to build the infrastructure.
Quality of Life: The general well being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy that goods and services provide. High quality of life is a combined effort of business, non- profit organizations and government agencies.
Stakeholders: All the people who stand to gain or lose by the policies and activities of a business. Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, and people in the surrounding community, environmentalists and government leaders.
Non- profit…...

Similar Documents

Support Positive Risk Taking

...Support positive risk taking in everyday life Explain ways in which risk is an integral part of everyday life, Risk for most people is an accepted part of everyday life e.g. catching a bus or walking to the shop etc... will carry some element of risk. Risk is associated with our health, safety, security, well being, employment, education, daily activities, using resources and equipment and community participation. Some adults such as those who are disabled or who are older are usually discouraged from taking risks with their budgeting, planning, employment and their daily living skills usually because people fear for their limitations or that they might hurt themselves or others. Everyone has the right to take risks and make decisions about their own lives, a balance should be found between service users participation in everyday activities and the carers duty of care. Social care and health policies are encouraging residents to increase their independence by being involved in the wider society such as leisure and work. It should be noted that it is impossible to eliminate risk completely, however minimising and being prepared for risk by preventative action. Supporting people to live independently by taking part of their lives means accepting that there are risks that cant be avoided but can be prepared for. Explain why individuals may have been discouraged or prevented from taking risks, For some services, approaches to risk have been a problem because they have...

Words: 4396 - Pages: 18

Saving the World While Making a Profit

...Master programme in Economic Growth, Innovation and Spatial Dynamics Corporate social responsibility as an organizational innovation: a comparative analysis of its implementation in the institutional frameworks of Sweden and the United Kingdom Klara Simcikova klara.simcikova.111@student.lu.se Abstract: Corporate social responsibility is a management concept originating from the Anglo-Saxon background and associated with the tradition of arm’s length relations between business and institutions in society. However, different institutional systems handle organizational innovations in dissimilar ways, and in the age of globalization, national institutions often interact with global ones. This study discusses how these mechanisms might affect CSR’s implementation in contrasting institutional frameworks – that is, Sweden and the UK, and finds that while explicit CSR seems to have converged, likely due to global pressures for equivalence, on a more fundamental level, domestic institutions remain major actors in influencing what version of CSR will develop. Even though the use of the concept, practices and motivation may appear similar, important differences emerge. CSR in Sweden seems to have a normative justification and an international focus due to the Swedish tradition of corporatist integration whereas in the UK, CSR is justified instrumentally, with a national focus, and is viewed as a complement to or substitute to state action. Key words: Corporate social responsibility,...

Words: 23299 - Pages: 94

Business and Its Environment

...Interdisciplinary Description of Complex Systems 8(1), 34-48, 2010 COMPLEXITY IN ORGANIZATIONS AND ENVIRONMENT - ADAPTIVE CHANGES AND ADAPTIVE DECISION-MAKING Robert Fabac* Faculty of Organization and Informatics, University of Zagreb Varaždin, Croatia Regular article Received: 14. May 2010. Accepted: 30. June 2010. ABSTRACT The features of complexity are ever more present in modern organizations and in environments in which they operate, trying to survive and be as competitive as possible.) In the processes of, the socalled emergence, the formal organizational structure, designed purposefully and with a plan, is going through a change due to complexity and the need for adaptation. As a result, there is a variety of new informal groups. At the same time, the intended structural changes and business process changes occur because of the perception that the leadership and senior organizational management have of the strategic situation. Managers in modern organizations often use business intelligence (BI) systems when making important business decisions. These systems offer support to the decision-making by gathering and processing relevant data and information about the company performance, but also about the data on conditions in close and remote environment. A modern company is characterized by the complex adaptive system, but the environment in which it operates together with other business subjects (agents) is also complex. Consequently, the requirements for......

Words: 6931 - Pages: 28

The Changing Role of Managerial Accounting in a Dynamic Business Environment

...MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. Explain the major differences between managerial and financial accounting. 5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location. 6. Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor. 7. Briefly describe some of the major contemporary themes in managerial accounting. 8. Understand and explain the concepts of strategic cost management and the value chain. 9. Understand the ethical responsibilities of a managerial accountant. 10. Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting. Chapter Overview I. The Management Process in Organizations A. What is managerial accounting? B. Management activities 1. Decision making 2. Planning 3. Directing operational activities 4. Controlling II. How Managerial Accounting Adds Value to the Organization A. Provides information for decision making and......

Words: 2206 - Pages: 9

Critical Analysis of the Impact of Change Management and M&a’s on the Dynamic Business Environment

...Critically Analyse the impact of Change Management and M&A’s on the dynamic business environment Contemporary Issues in Management Joshua Travers Submitted for: BA (HONS) BUSINESS STUDIES BOURNEMOUTH UNIVERSITY Date of submission: 13th December 2013 Joshua Travers i7943443 Introduction The author has interpreted the dynamic business environment to be all of the factors, both internal and external, which influence the function of a business. Internal factors include items such as the company's products or services, employees, assets, and marketing. External factors include competitors, stockholders, customers, and economic conditions (Investor Words 2013). This essay will explore how the two issues addressed in the title can impact the central theme; the employee. Failure of engaging with the employee has been highlighted as a major cause to why 70% (Keller and Aiken 2008) of change and 50% (Sher 2012) of M&A efforts fail. This common pitfall suggests that both of these issues impact heavily on the employee and vice versa. The author aims to critique change management and merger literature to provide an extensive view of these issues in the business environment. Once the relevant context is set, the essay will focus towards the employee perspective of these two issues and will apply significant theory to a range of recent examples within the realm of these topics. Change Management Change management can be defined as “the process of continually......

Words: 4711 - Pages: 19

Business Environment

...Business Environment: A Case Study of Cadbury Schweppes Table of Contents Particulars: Page No. Introduction 03LO1 Understand the organisational purposes of businesses 1.1 Purposes of the Cadbury Schweppes: 031.2 How Cadbury Schweppes meets its Stakeholders objectives 041.3 Responsibilities and strategies by Cadbury Schweppes 05LO2 Understand the nature of the national environment in which businesses operate2.1 Resources allocation is different economic system 05 2.2 Impact of fiscal and monetary policy on business to allocate its resources 06 2.3 How the competition policy and other regulatory mechanisms impacted on Cadbury Schweppes 07LO3 Understand the behaviour of organisations in their market environment3.1 Market structures in determining the pricing and output decisions 083.2 Market forces shape organizational responses 093.3 Business and cultural environment change the shape of an organization 10LO4 Be able to assess the significance of the global factors that shape nationalbusiness activities4.1 Significance of international trade to United Kingdom business organizations 114.2 Impacts of global factors on UK business organizations sectors 114.3 Impact of policies of the European Union on UK business 12------------------------------------------------- Merit......

Words: 8213 - Pages: 33

Risk Taking in Business

...Risk Taking in Business When I think of the word risk I think of daredevils, rebellious teens and getting into something you just might regret and according to the Business Dictionary they define risk as a “probability or threat of damage, injury, liability, loss or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.”(Home,2014) We’ve been taught throughout our lives that those daredevils and rebellious teens were bad, but who’s to say they just weren’t risk takers. Risk taking is something you have to do in order to make a profitable and successful business, just look at some of the most successful businesses out there today they didn’t get there not taking risk. I’ve come to realize with all my research there are good and bad risk and understanding the thin line between the two could mean the difference between a smart business decision and unwise mistake. Taking risk is not something to do lightly it takes calculated reasoning and beneficial risks require careful planning. Bad risk tends to be a product of thoughtlessness. Fortunately, most CEOs and business owners wouldn't have arrived at their current position if they regularly made the latter type of decisions. (Hendricks, 2014) So I wonder what is a good risk? And I found it is the product of assessing needs, identifying areas that need improvement, formulating strategic plans and executing initiatives while anticipating mistakes...

Words: 1914 - Pages: 8

Strategic Management in Dynamic Environments

...Strategic Management in Dynamic Environments November 7, 2011 The Social networking industry has grown tremendously within the last few years. Consumers have gained many strategies for communications using the social networking websites. Using the social media in today's society has assisted consumers in many ways. Social networking websites can allow users to advertise, campaign, and even buy things. Many users utilize the social networking sites for searching and communicating with long lost friends, family, or even co-workers. There are a few social networking websites that are more popular than others such as Facebook, My space, Twitter, Craig list, and you tube. There is some significance to all of these, and they all have matured in this previous year. According to Reality Digital states the latest demographic data for the leading social network sites. It states, "The median age of twitter users remained firm at 31 between May 2008 and May 2009, while both my space and Linked IN saw a one year age drop year-over-year from 27 to 26 and 40 to 39, respectively. The most dramatic change was from facebook which shot up to 33 years old from 26 years old in 2008."(Reality digital). Many companies have adjusted very well to the social networking industry. Since features in the social network have veered towards the businesses now, many companies have gained in sales and profits. I think Mr. Brian Solis said it best, some adaptations are: "Return on Engagement,......

Words: 951 - Pages: 4

Non-Profit to Profit Making Plan

...Running Head: Non-Profit to Profit Making Plan Non-Profit to Profit Making Plan Assignment Two Strayer University HSA 505 Health Services Strategic Marketing Non-profit and for-profit hospitals come with their own set of rules, regulations, and expectations. They both work financially differently and it is known that for-profit hospitals generate millions of dollars in revenue every fiscal year. This is not the same for non-profit hospitals. Non-profit hospitals work with what the state and federal government allots them and they do not make money hand over fist. The obvious motive for turning a non-profit hospital into a for-profit hospital is for money. This paper will address the external and internal factors that influence decisions, the theory and practical framework of data, market segmentation, and analyzing of data for the switch from non-profit to for-profit hospitals. Describe the external and internal factors that influence the executive team’s decision making and specify which might be most instrumental in making the decision to become a for-profit entity. Why do you think so? It is imperative to understand the differences of internal and external factors, especially in terms of decision-making due to the fact that a problem has to be recognized in order to establish a next crucial step. In this instance the next crucial step is the decision to move from a non-profit to a for-profit entity. Within this move both internal and external......

Words: 1557 - Pages: 7

Dynamic Games Environments

...MS3302: Dynamic Games Environments CW2: Individual project 2012/13 Semester A Module Leader: David Dorrington Student No: 1013088 Level Title: Capsule Man: The Escape Deadline: 4pm Monday 7th Jan 2013 UEL Computer Games www.uelgames.org Contents Introduction 3 Initial Concept 3 Project Constraints 4 Dynamic Events Plan 5 Overview 5 Level Goals & Events 5 Level flow chart 7 Dynamic Event Planning 9 Level Map 18 Animation Plans 18 Gameplay Testing, Problems & Solutions 19 Appendices 25 Appendix A Files on the .rar package 25 Appendix B Level Walkthrough 25 Appendix C Some Early Idea Sketches 25 Introduction This report covers design of side scroller/platformer game “Capsule Man: The Escape”. Initial concept introduces reader to the game idea that was pitched at the beginning of year dynamic elements used and what has changed since the development has started. Project constrains is listing all constrains of the project that might not be implemented in to the game time it would take and whether it would be possible to use it. Dynamic events plan will include the design of the dynamic game events, level map, level goals and flow charts will help to reflect the decisions made. Initial Concept The game that has been developed is completely different from an initial proposal idea. Some of the dynamic elements proposed to be used were not even dynamic elements. Some aspects have been taken from an initial......

Words: 5542 - Pages: 23

Business Environment

...UNIT-I BUSINESS AND ITS ENVIRONMENT Business may be understood as the organised efforts of enterprises to supply consumers with goods and services for a profit. OBJECTIVES OF BUSINESS • Profit- making profit is the primary goal of any business enterprise. Profit is the excess of income over expense. Profit is the main incentive, motivator, strong sustainer, objective of productivity and a solid basis for growth. • Growth- business should grow in all directions over a period of time. An enterprise which remains stagnant for long is presumed to suffer from an organic deficit. The strategies adopted to achieve growth are: add more products/markets; diversify into new markets; integration-forward or backward; increase market share; expand markets or cut down costs and increase productivity. • Power- Business houses have vast resources (in the form of money, materials, men and technological know how) at its command. These resources confer enormous economic and political power on owners and managers of business ventures. • Employee satisfaction and development-caring for employee satisfaction and providing for their development has been one of the objectives of any business enterprise. The Tatas are a legend in pursuing this objective. Either in implementing labour welfare measures, constituting safety and security measures, or in providing training and development facilities, the name of Tatas should be mentioned first. • Quality products and services-enterprises that......

Words: 7316 - Pages: 30

Business Environment

...HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BY SHAHZAD MIRZA UKCBC PARK ROYAL LONDON ID: 12878-RB HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BUSINESS ENVIROMENT | Introduction | 3 | 1.1 | Identify the purpose of organisations | 3-4 | 1.2 | Describe to which extent Iceland Supermarket Ltd meets objectives of its different stakeholders. | 5-6 | 1.3 | Explain various responsibilities of Iceland | 7 | 2.1 | Different economic systems | 8-9 | 2.2 | Fiscal and monetary policy | 10-12 | 2.3 | Competition policy and other regulatory mechanism | 13-14 | 3.1 | Market structures determine the pricing and output decisions | 15-21 | 3.2 | Which market forces shape Iceland Supermarket responses | 21-22 | 3.3 | How the business and cultural environments shape the behaviour of Iceland | 22-23 | 4.1 | Significance of international trade to Iceland Supermarket | 23 | 4.2 | Impact of global factors on Iceland Supermarket | 24 | 4.3 | Impact of policies of the European Union on Iceland Supermarket | 25 | | Conclusion | 26 | | References “ | 27 | CONTENTS “ Introduction of Business......

Words: 6611 - Pages: 27

Business Environment

...Assignment on Business Environment Introduction: Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization.  Business environment consists of two components: external environment and internal environment.  Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors.  5.      Understand the organizational purpose of business 1.1  Identify the purpose of different types of organizations There are different types of organizations and mainly all kinds of organizations are divided in three sectors: public sectors, private sectors and voluntary sector organizations. The purposes of those organizations are not same. Public sector is owned and run by the government for the people. People pay taxes to the government and this money is used to finance most of the public sectors. The main purposes of public sectors organizations are to provide essential public services and to use......

Words: 3173 - Pages: 13

Non Profit to Profit Making

...Non-Profit to Profit Making • Tasha Garrison HSA 505: Health Care Planning and Marketing Dr. Wendy Whitner October 30, 2011 Describe the external and internal factors that influence the executive team’s decision making and specify which might be most instrumental in making the decision to become a for-profit entity. Why do you think so? In communities around the nation, many not-for-profit hospitals are struggling to stay afloat. Rising costs, a heavy patient load and outdated equipment make some simply not economically viable. For-profit medical groups are often stepping in and buying these hospitals. While some community leaders are relieved that the hospitals are being saved, others worry that it will be at a cost to the economically disadvantaged in the community. With more hospitals on the auction block every day, the effect of this change is likely to become clear in the coming months and years. There are several factors that contribute to an executive team deciding to become a for profit organization. The most common reason is financial. Both internal and external factors can also influence an executive team’s decision to become a for profit entity. Some of the internal factors are employee turnover or employee relations issues, dated or obsolete facilities, and healthcare services that may be out of line with market demand. The external factors that contribute......

Words: 859 - Pages: 4

The Effects of Social Network Within Business Environment

...The Effects of Social Network within Business Environment Absolutely, using the social networks as a great facility might have some advantages and also some disadvantages, just like other thing. The impacts and benefits of using social networks within business environment as follow. Business Risks of Social Networking: 1) Productivity losses: a) Addictive and time-consuming. b) Over-use during work time is a genuine issue. c) Can actually increase the productivity and effectiveness for some roles. 2) Legal risks a) Generally employers can monitor their employees’ web use and email, but notice is needed. Can result in legal liability. b) Potential for legal liability due to customer actions. 3) Reputation risk a) A risk to the business’s reputation. b) Many examples of gaffes & negative comments. c) Difficult to remove the comments. 4) Viruses and spyware a) Frequently a platform for malicious attacks using viruses and spyware. 5) Privacy breaches and identity theft a) Can promote identity theft, even where private. b) Third party applications usually get access to data. 6) Social engineering a) Use online information to commit targeted acts of fraud. b) Could profess to be the assistant to a high-level staff member, and know enough internal’ information to convince a staff member to provide cheques or goods. c) Convincing identity cards/business cards used to gain access to the business or its customers. d) Grandparent......

Words: 925 - Pages: 4

Cafe Detective Club | Extreme Landings Pro cheat | Transportation