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Buisness

Università commerciale Luigi Bocconi international economics and management 2022
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Business involves creating goods or services to meet customer needs, aiming for profit. Companies operate within value chains where each adds value, generating revenue through sales. Profit is revenue minus costs. Businesses can be for-profit (like enterprises) or non-profit (e.g., charities). Two main types are goods-producing and service businesses. Risk and reward in business decisions are linked. Business models describe how to generate revenue. Industry analysis involves examining the macro-environment using PESTEL: Political, Economic, Social, Technological, Environmental, Legal factors. This helps understand market dynamics and potential change
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  • Business = profit-seeking organizations providing goods or services to satisfy customer needs, often called enterprises or firms.
  • Revenue is money from sales, while profit equals revenue minus costs; competitive advantage comes from unique product features or company aspects appealing to customers.
  • Main business types: goods-producing businesses (tangible products like furniture) and service businesses (activities like finance and healthcare), with different protection challenges.
  • Risk and reward in business involve making decisions that can lead to positive outcomes and profits, or negative ones leading to consequences for the company or others.
  • Business models include B2B, B2C, C2C, and C2B transactions; non-profit organizations apply business principles but aim at social goals rather than profit.
  • Core functions in a business involve manufacturing, production, operations, marketing, finance/accounting, and human resources to coordinate efforts for customer satisfaction.
  • R&D is crucial for developing new or improved products, linked with selling strategies; drop shipping businesses focus on selecting products and generating revenue models.
  • Industry analysis involves studying the macro-environment using PESTEL framework (Political, Economic, Social, Technological, Environmental, Legal) to understand market opportunities and threats.

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