New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

MIE 201, Chapter 1 Book Notes

by: Jenna Loehrer

MIE 201, Chapter 1 Book Notes MIE 201

Marketplace > North Carolina State University > Management > MIE 201 > MIE 201 Chapter 1 Book Notes
Jenna Loehrer
GPA 3.9

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes and vocabulary will be on Exam 1.
Intro to Management
M.K. Ward
Class Notes
25 ?




Popular in Intro to Management

Popular in Management

This 5 page Class Notes was uploaded by Jenna Loehrer on Wednesday September 21, 2016. The Class Notes belongs to MIE 201 at North Carolina State University taught by M.K. Ward in Fall 2016. Since its upload, it has received 3 views. For similar materials see Intro to Management in Management at North Carolina State University.


Reviews for MIE 201, Chapter 1 Book Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/21/16
CHAPTER 1: THE BUSINESS OF BUSINESS  LEARNING OBJECTIVES  1. Explain the concept of adding value in a business and identify the major types of businesses  ● A method of understanding what any business does is to view it as a system for meeting  customer’s needs by transforming lower­value inputs into higher value outputs.    2. List three steps you can take to help make the leap from consumer to business professional  a. 1) develop a business mindset that views business from the inside rather than outside  b. 2) recognize the positive and negative effects of a business on society  c. 3) develop a business vocabulary/explore the field of business  3. Discuss the five major environments in which every business operates  a. The social environment ­ the trends and forces in society at large  b. The technological environment and its ability to create and destroy markets and alter  business processes  c. The economic environment, the conditions and forces that affect the cost and availability  of goods, services, and labor and thereby shape the behavior of buyers and sellers  d. The legal and regulatory environment, comprising all the rules and regulations relating to  the business and activities  e. The market environment, composed of target customers, buying influences, and  competitors  4. Explain the purpose of the six major functional areas in a business enterprise      5. Summarize seven of the most important business professions  a. Operations managers oversee all the people and processes involved in creating the goods  and services that a company sells  b. HR specialists/managers plan and direct HR activities (recruiting, training and  development, compensation and benefits, employee and labor relations, and health/safety  c. IT managers oversee the design, implementation, and maintenance of systems that help  deliver the right info   d. Marketing specialists perform one or more tasks involved in identifying and understanding  market opportunities and shaping the product, pricing, and promotional strategies needed  to pursue those opportunities  e. Sales professionals build relationships with customers and help them make purchase  decisions  f. Accountants collect, analyze, and report on financial matters  g. Financial managers plan for the company’s financial needs, invest funds, and raise capital  6. Identify seven components of professionalism  a. Striving to excel, being dependable and accountable, being a team player, communicating  effectively, demonstrating etiquette, making ethical decisions, and maintaining a positive  outlook    UNDERSTANDING WHAT BUSINESSES DO  ● The term business is used in many ways  ○ A label for overall field of business concepts (ex: i plan to major in business)  ○ Collective label for the activities of many companies (ex: AMerican business as a whole)  ○ A way to indicate specific activities or efforts (ex: business earning money, losing money)  ○ As a synonym for “company”  ● Business: ​any profit­seeking organization that provides goods and services to satisfy customer  needs  ○ Transform lower­value inputs into higher­value outputs  ○ Company adds value to create the product in a way that makes it appealing to next  customer  ○ Revenue:​ money company brings in through sale of goods/services  ○ Business model: ​outline of how business intends to generate revenue  ● Profit: ​amount of money left over after expenses (costs involved to carry out business) are  deducted  ● Competing to attract and satisfy customers  ○ Competition gives consumer wider range of options, increases quality, improves customer  service, and lowers prices  ○ Free market economy:​ businesses can have flexibility in deciding which customers to  focus on/how to compete  ■ Competitive advantage makes products appealing to chosen customers (ex: cheap  mass produced bread vs. expensive artisan bread)  ● Accepting risk in the pursuit of rewards (2 reasons they engage)  ○ 1) Some level of risk in order to conduct business for hope of future rewards   ■ Without this, businesses would have no incentive to take on risk  ○ 2) Risks encourage smart/responsible decisions   ○ Moral hazard:​ likelihood to engage in irresponsible and unethical behavior  ● Major types of businesses  ○ Driving forces:​ profit and assets (anything of meaningful value)  ○ Not­for­profit:​ no profit motive  ○ Two broad categories: (many companies are both types)  ■ Goods­producing businesses:​ make things that are tangible and intangible  (software, digital products, etc)  ● Often capital­intensive: capital needed to compete is a barrier to entry  (something the company must have before it can start competing in a  market)  ■ Service businesses:​ create value by performing activities (construction,  entertainment, etc)  ● Account for 70% of economic activity in US and 80% of jobs  ● Tend to be labor intensive    MAKING THE LEAP FROM BUYING TO SELLING  ● Businesses contribute in these ways:  ○ Offering valuable goods and services   ○ Providing employment (also help employees meet costs of health care, child care,  education, etc)  ○ Paying taxes to help build highways, fund education, and more  ○ Contributing to national growth, stability, and security (strong economy → strong country)  ● Potential negative effects of business on society  ○ Pollution and waste creation  ○ Creating health and safety risks  ○ Disrupting communities  ○ Causing financial instability (irresponsible businesses become a liability and may require  gov assistance)  ● Balance the profit motive with society’s shared interests  ● Social entrepreneur:​ person who applies entrepreneurial strategies to enable large­scale social  changes  ● Jobs in business: accounting, economics, human resources. Management, finance, and marketing    RECOGNIZING THE MULTIPLE ENVIRONMENTS OF BUSINESS  ● Every company operates within a number of interrelated environments that are affected/affect  business  ● Social environment:​ the trends and forces in society at large  ○ Ex: population trends like the Baby Boom generation that change the composition of  consumers, social values/behaviors, relationship of society and business  ○ Stakeholders:​ all groups affected by a company’s activities   ● Technological environment: ​stems from the practical application of science to innovations,  products, and processes  ○ Disruptive technologies: change the nature of industry and have the power to destroy entire  companies (internet, mobile phones/ mobile connectivity, social media, etc)   ■ Mobile connectivity also helps companies: boost employee productivity, help  companies form closer relationships with customers/business partners, spur  innovation in products/services  ■ Firms on leading edge of mobile revolution work to integrate mobile tech  throughout organizations  ● Economic environment:​ the conditions and forces that affect cost and availability of goods,  services, and labor and thereby shape the behavior of buyers and sellers  ○ Help companies by increasing demand and supporting higher prices for their products   ■ But also can raise costs of labor and materials  ■ Strong economy can prompt business to make unwise long term choices for when  economy slows down  ● Legal and regulatory environment:​ the sum of laws and regulation at local, state, national, and  even international levels  ○ Policies and gov bodies support businesses operating in their jurisdiction   ■ Companies prefer to locate and do business in jurisdictions that offer lower costs,  lower complexity, and greater stability/predictability  ● Market environment composed of:  ○ Target customers  ○ Buying influences that shape behavior of customers  ○ Competitors   ○ Ex: easier to launch a new line of clothing rather than a new plane  ■ Competitors for clothes appear overnight (trends) while planes do not  ● Research and development: ​conceive and design products (product design/engineering)  ○ Design new and better ways to run their operations  ○ Information technology (IT) systems that promote communication and information usage  through the company or that allow companies to offer new services to their customers  ● Manufacturing, production, and operations​: concerns whatever the company makes or does (good  or service)  ○ Supervise actual production activity, purchasing, logistics, and facilities management   ● Marketing, sales, distribution, and customer support  ○ Marketing: ​identifying opportunities in the marketplace, work with R&D, set prices  ○ Sales:​ develop customer relationship  ○ Distribution:​ before and after sale (promote and deliver)   ○ Customer support:​ make sure customers have info they need  ○ Shift to social media puts more power into buyers hands  ● Finance and accounting  ○ Ensure funds needed to operate, monitor and control  ○ Financial managers are responsible for planning   ○ Accounting managers are for monitoring and reporting  ● Human resources (HR)   ○ Recruiting, hiring, developing, and supporting employees  ○ Oversees processes and supports the other departments  ○ Make sure company is in compliance with laws of employee rights and safety  ● Business Service: help companies with specific needs in law, banking, real estate, and others  ○ Performed  by in­house staff, external firms, or combo of both    Exploring careers in Business  ● Operations manager:​ encompasses all the people and processes used to create the goods and  perform the services  ○ Fluctuating demand levels and with process and supply problems  ● Human resources specialist:​ plan and direct personnel­related activities (recruiting,  training/development, compensation/benefits, employee and labor relations, health/safety)  ○ Keep best talent on the market  ● IT manager:​ design, implement, and maintain systems that help deliver the right information at the  right time to the right people in the organization  ● Marketing specialist:​ branding strategy, electronic commerce, advertising, public relations,  creative communication, interpersonal relations, or social media  ● Sales professional:​ building relationships with customers and helping them make purchase  decisions  ○ Often have quotas to meet  ● Accountant: ​ math and business  ○ Management:​ collecting, analyzing, and report on financial matters (budget, costs, federal  tax returns)  ○ Internal auditors: ​verify work of company accounting to improve efficiency  ○ Public accountants:​ accounting, tax prep, and investment advice  ○ External auditors:​ verify financial report of public companies as required by law  ○ Forensic accountants:​ investigate financial crimes  ● Financial manager:​ Controller, treasurers and finance officers, credit managers and cash managers    Achieving professionalism  ● Professionalism:​ the quality of performing at a high level and conducting oneself with purpose and  pride  ○ Striving to excel: build career  ○ Being dependable and accountable  ○ Being a team player  ○ Communicating effectively  ○ Demonstrating etiquette   ○ Making ethical decisions  ○ Maintaining a confident/positive outlook    Notes from Quiz  ● Which of the following is a potential way for a business to contribute to society in useful or  meaningful​ ​ ways? → C​ ontributing to national security  ● The social environment involves trends and forces in society at​​ large,​ such as how all companies  are affected by population trends that change the composition of consumer markets and the  workforce.  ● The economic environment involves the conditions and forces that​ (1) affect the cost and  availability of​ goods, services, and labor and​ (2) thereby shape the behavior of buyers and sellers.   ● The technological environment stems from the practical application of science to​ innovations,  products, and processes.  ● The legal environment involves​ businesses, such as electricity and other basic​ utilities, being  heavily​ regulated, even to the point of government agencies determining how much such  companies can charge for their services.  ○ The policies and practices of government bodies also establish an overall level of support  for businesses operating within their jurisdictions.​ Taxation, fees, efforts to coordinate  multiple regulatory​ agencies, the speed of granting permits and​licenses, labor​ rules,  environmental​ restrictions, protection for assets such as patents and brand​ names, roads  and other​ infrastructure, and the transparency and consistency of decision making all affect  this level of support.  ● The economic environment includes the conditions and forces that affect the cost and availability  of​ goods, services, and​ labor, thereby shaping the behavior of buyers and sellers. For​ example, a  growing economy can help companies by increasing demand and supporting higher prices for their ​ products, but it can also raise the costs of labor and the materials the companies need in order to  do business.  ● The market environment is a​ company's target​ customers, the buying influences that shape the  behavior of those​ customers, and competitors that market similar products to those customers. 


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.