INTRODUCTION TO

LIBERAL ARTS-
INTRODUCTION TO
BUSINESS (SMS)

FATIMA KHALID
INTRODUCTION TO BUSINESS
• Business is defined as any organization or enterprise engaging in industrial,
commercial, or professional activities.
• A business can be:
• A variety of models, including for-profit, nonprofit, and governmental or public administration
• Any practice of:
• -Making, buying, selling, or providing services in exchange for money (for-profit)-Apple
• -Supporting, developing, or implementing activities to support societal and charitable needs
(nonprofit)-Doctors without Borders
• -Creating or practicing activities to support government needs or solutions for society or community
needs (public administration)-The U.S. Department of Education
BUSINESS FACTORS Supply and
Demand

Technology Economics

Economies
Factors in
Microenviron •Traditional
ment •Command
•Market

Competition
Factors un
Macroenviron •Monopolistic
ment •Oligopoly
•Monopoly
BUSINESS FACTORS
• Supply & Demand:
• the amount of commodity, product, or service desired by the customer base (demand)
• Tangible product, commodity, or service produced and quantity to meet the demand (Supply)
• Economics: types of business dealings taking in markets
• Traditional: found in developing third-world countries where goods and services are provided
generationally
• Command: The government owns the business and controls the economy, making the decisions on
business and opportunity.
• Market: free enterprise; citizens and businesses are free to make their decisions of what to buy and
sell and how to conduct their business
BUSINESS FACTORS

• Competition: companies offering similar products/services to consumers in the free market

economy.
• -Monopolistic competition: many sellers or competitors offering similar products or services, but
each seller has unique differentiators on features or benefits
• -Oligopoly: fewer sellers or competitors with less choice differentiation –
• Monopoly: only one seller in a market offering a single-source solution. Legal if patent; illegal it does
not allow for the free enterprise of competition
• Factors in the macroenvironment: influences such as politics, law, societal issues, and other
emergent issues that determine business objectives and outcomes
 BUSINESS FACTORS
• Factors in the microenvironment: opening channels of communication from employees
directly to leadership could improve cultural intelligence
• Influences the decisions of individuals based on business production, exchange, or consumption
•Technology: continually advancing to enhance business planning and operations and keep pace
with developing new consumer or market needs
BUSINESS SIZE
• Small employee base
• Focused customer segment or market
• Starts generally as a startup or entrepreneurial
• Usually has focused geography of markets
• Smaller leadership and decision-making units

SMALL •
•
•
Investment capital can be limiting or specific
Can be a sole proprietor or single owner
Low-level dependency on technology in some
businesses
• Flexibility is greater than larger organizations to test
the market
BUSINESS SIZE
• Higher volume of employees
• Hybrid of the entrepreneurial environment
and corporate structure of a large business
• Many are privately owned
MEDIUM • Multiple locations, business units, and/or
remote work environments or operations
• Technology dependencies medium to low
• Localized geography or markets
• Capital investments are slightly larger and
more flexible
 • Generally global in scale
• Highly specialized roles and departments
• Organized as corporations or large enterprises
• Many stakeholders, investors, and/or
shareholders
LARGE • A wider range of audience segments and
customer base
• •Generally, has the most competitive environment
and market dynamics
• Higher capital investment ability
• Highest dependence on technology
FORMS OF
ORGANIZATION
BUSINESS MANAGEMENT & LEADERSHIP

• The role of management is to lead a department or company in the direction sought to be

competitive and strategic
• Key Responsibilities
• Direct the creation, maintenance, and allocation of resources to achieve corporate objectives
• Establish and execute the management process inside an organization •
• Adapt to meet the needs and restrictions of the internal and external environments of a company
• Oversee four essential functional areas: 1. Planning 2. Organizing 3. Leading 4. Controlling
BUSINESS DEPARTMENTS- MARKETING

• Definition: A set of processes for creating, communicating, and delivering value to customers
and for improving customer relationships
MANAGING THE 4 P’S OF MARKETING:
1. Price: setting the market value for a product or service
2. Product: communicating a product’s benefits and features
3. Promotion: defining the channel and method to advertise
4. Placement: focusing on the accessibility of the product or service
ORGANIZATIONAL IMPACT
• CUSTOMER RELATIONSHIP MANAGEMENT
• Marketing focuses on building customer relationships and communicating the value proposition of a company’s product or
services. This impacts a company by:
• Developing a product and articulating its features and benefits
• Determining a product or service’s price
• Determining the target market
• Making prospective clients aware of product or service
• Getting individuals to buy a product or service
• Distributing to purchasers
• Managing customer relationships after the product or service has been provided

• BRANDING: Promotion of a product or business through advertising and distinctive design

• Brand equity: commercial value derived from consumer perception of a product or service’s brand name, as opposed to the
product or service itself
• Brand loyalty: repeat business to a brand of choice by a customer based on repeated satisfaction in experience and use of goods
and services
FINANCE & ACCOUNTING

• The study of how individuals, institutions, governments, and businesses acquire, spend, and
manage money and other financial assets.
• Function
• Every business is a process of acquiring and disposing of assets:
• Real assets (tangible and intangible)
• Financial assets
• Two financial objectives of companies:
• Grow wealth
• Use wealth (assets) to best meet economic needs
FINANCE
• Fundamentals of Finance
• Time value of money
• Focuses on investment and timing of ROI
• Risk vs. return
WHAT IS A FINANCIAL STATEMENT? A DOCUMENT THAT CONVEYS A
COMPANY’S COMMERCIAL ACTIVITY AND FINANCIAL PERFORMANCE

• Key factors of a financial statement:

• Balance sheet: gives a snapshot of the company’s assets, liabilities, and shareholders’ equity
• Income statement: focuses primarily on the revenues and expenses of a business within a specific
time. Once expenses are removed from revenues, the profit amount, known as net income, is revealed
• Cash flow statement (CFS): reflects a company’s ability to generate cash for debt service, operating
expenses, and investment purposes
OPERATIONS & SUPPLY CHAIN MANAGEMENT

• All the activities involved in transforming a product idea into a finished product, as well as
those involved in planning and controlling the systems that produce goods and services
• Function
• Manufacturing: the making of articles on a large scale using machinery; industrial production
• Production planning: the method of planning the build, manufacturing, or assembly of products
• Facilities management: during production planning, managers establish how products will be
manufactured (production process), where production will occur (site selection), and how
manufacturing facilities will be arranged (layout planning)
OPERATIONS & SUPPLY CHAIN MANAGEMENT

• Production processes: in determining the appropriate production process, managers evaluate three fundamental
approaches:
• Make-to-order strategy: goods are manufactured according to customer specifications
• Mass production or make-to-stock strategy: large quantities of goods are manufactured and held in inventory for
later sale
• Mass customization: high volumes of customized goods are made
• Demand forecasting: managers estimate the quantity of products to be produced by predicting the demand for their
product and then estimating the capacity needs of the production facility, which is the maximum number of things it
can create in a particular period under normal working conditions
• Quality management: focuses on the durability, longevity, and overall assurance of functionality to meet regulatory
requirements and customer satisfaction on the usage of a product or service
OPERATIONS & SUPPLY CHAIN MANAGEMENT

• Sourcing and procurement: includes every activity that revolves around identifying and
assessing potential suppliers as well as selecting and engaging with an appropriate supplier who
offers the best value
• Inventory management: handling and storing inventory, including raw materials, components,
and finished goods; crucial to the survival of every business. This significance is directly
proportional to a company’s size
• Purchasing: the process of acquiring the materials and services to be used in production
BUSINESS INTELLIGENCE: THE INFRASTRUCTURE THAT COLLECTS, STORES,
AND ANALYZES THE DATA GENERATED BY A COMPANY’S OPERATIONS

• Business intelligence (BI) is inclusive of data mining, process analysis performance benchmarking,
and descriptive analytics. All data generated by a business are analyzed by a BI system, which then
generates reports, performance measurements, and trends that guide management choices
• Key Factors
• Analyze data and generate reports and insights that assist managers in making better decisions
• Solutions are developed by software companies for businesses who seek to make better use of their data
• Software and tools include spreadsheets, reporting and query software, data visualization software, data
mining tools, and online analytical processing software (OLAP)
• Self-service BI is an approach to analytics that enables nontechnical users to access and investigate data
SEVEN FUNDAMENTAL BENEFITS

• 1. Faster analysis, intuitive dashboards: visualizing data and insights to develop perspectives and
information sharing, (Walmart use of BI dashboards)
• 2. Increased organizational efficiency: improving the ability to enhance processes and operations
• 3. Data-driven business decisions: making decisions from an objective, and not just subjective, view
• 4. Improved customer experience: meeting the changing needs of customers and meeting their
demands
• 5. Improved employee satisfaction: creating a better work environment for employees to perform at
optimal levels
• 6. Trusted and governed data: ensuring data are accurate, reliable, and useful
• 7. Increased competitive advantage: developing business strategies based off of credible BI to be
more competitive
HUMAN RESOURCE DEPARTMENT

• Human resources (HR) is the corporate section responsible for

• locating, screening, recruiting, and training job candidates, as well as running employee benefits programs.

• An HR Department is responsible for a variety of essential responsibilities. Common examples

include:
1. Recruitment, selection, and orientation of new workers
2. Managing employee benefits and compensation
3. Offering job and career development to employees
4. Addressing the work-related concerns of specific employees
5. Developing company-wide rules that affect the working environment
BUSINESS STRATEGY: Business strategy is a comprehensive set of plans, activities, and
objectives
outlining how a corporation will compete in a certain market or markets with a product or group of products and services

• Six Elements of Business Strategy

• 1. Vision: a corporate plan should emanate from the leaders’ vision. Having a clear vision for
leadership is a crucial beginning step. Where and why are we going
• 2. Culture: a significant factor in the implementation of a successful corporate plan. Without a culture
of support, you will do nothing
• 3. Strategic plan: clear guide on how to communicate the value, processes, and goals of the company
• 4. Management: to achieve your company plan, you must have a team of competent and motivated
managers to guide teams and ensure execution
• 5. Systems: to properly implement your business plan, you also want effective and efficient business
systems in technology and processes
• 6. Resources: the right staff members skilled in the right specialties to carry out the strategy
MOCK-INTERVIEWS
QUESTIONS QUESTIONS
1. Tell me about yourself. 11. What motivates you in the workplace?
2. Why do you want to work at our company? 12. How do you handle feedback?
3. What are your strengths? 13. Tell me about a time you solved a difficult problem.

4. What is your greatest weakness? 14. How do you deal with tight deadlines?
5. Describe a time when you worked as part of 15. Why should we hire you?
a team.
6. How do you handle stress and pressure? 16. Tell me about a time you disagreed with a colleague and how you
handled it.
7. Can you tell me about a time you failed and 17. What are your salary expectations?
what you learned from it?
8. Where do you see yourself in five years? 18. How do you stay organized?
9. Why did you leave your last job? 19. Tell me about a project you’re particularly proud of.

10. How do you prioritize your work? 20. What do you know about our company?