entrepreneurship lecture 1

[xerxes]

SUBJECT: Entrepreneurship

Lecture Given: June 18-30, 2009

POWER POINT PRESENTATION

Reference: Introduction to Management-Stephen Robbins and Mary Coulter

Principles of Economics-Karl Case and Ray Fair



Entrepreneurship



• BUSINESS MANAGEMENT / ADMINISTRATION

• MARKETING MANAGEMENT / MARKETING COMMUNICATIONS

• ECONOMICS

• FINANCE

• BUSINESS LAW



Business



• Organization of the people with varied skills, which uses property or talents, to produce goods or services, which can be sold to others for more than their costs

• A system through which economic activity is organized and directed by those who seek to make a profit



Kinds of Businesses



• Commerce

• Industry

• Service



Commerce



• Transfer or exchange of goods and services with the movement of goods from point of production to the point of consumption

• Covers buying, selling, marketing and merchandising

• Trade may be either retail or wholesale



Industry



*Concerned with the creation of form utility or the production of goods that are used either by the consumer or by other industries

• Genetic industries (Begin)

• Extractive (extracting of goods from natural resources)

• Manufacturing (raw materials or secondary products to a more useful form)

• Construction –building of airports, seaports, office buildings or skyscrapers, schools, government facilities and residences.





Service



• Cater to personal needs of people, or with rendering of a personal service



Recreation Services



• Motion picture production and distribution, theaters, stage presentations, television programs etc.



Personal Service



• Restaurant, hotels, lodging houses, laundry shops, beauty parlor, barber shop, canteens



Economics



• Is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.

• The study of how people make choices (societal choices)



Why study Economics



• To learn a way of thinking

• To understand society

• To understand global affairs

• To be an informed voter



3 Most Fundamental Concepts



• Opportunity Cost

• Marginalism

• Efficient markets



Opportunity Cost



• The best alternative that we forgo, or give up, when we make a choice or a decision



Marginalism



The process of analyzing the additional or incremental costs or benefits arising from a choice or decision









Efficient Markets



• A market in which profit opportunities are eliminated almost instantaneously