CHAPTER 1:

Define business management and business

A business is an organization or entity engaged in commercial, industrial, or
professional activities. Their primary goal is typically to generate profit, but there are
also non-profit organizations that provide services or goods without aiming for
financial gain. Businesses come in all shapes and sizes, from a local bakery to a
multinational corporation.
Business management is the process of overseeing and controlling a business's
activities, resources, and personnel to achieve its goals. It's essentially the art and
science of running a business effectively. Business managers wear many hats and
are responsible for various aspects, including: Planning, Leading, Control, Organizing

● Why do people choose to become an entrepreneur???

● Debate: Pro/con

Pros (Reasons People Become Entrepreneurs):

● Be Your Own Boss: Entrepreneurs have the freedom to make their own decisions,
set their own hours, and pursue their vision without answering to someone else.
● Unlimited Earning Potential: Successful businesses can generate significant profits
for the owner. Unlike a traditional job where salary increases are often limited,
entrepreneurs can reap the rewards of their hard work and innovation.
● Passion and Purpose: Many entrepreneurs are driven by a passion for their idea and
a desire to make a difference. They enjoy the challenge of building something from
the ground up and seeing their vision come to life.
● Flexibility and Creativity: Entrepreneurs have the flexibility to adapt their business to
changing market conditions and pursue creative solutions to problems. They're not
bound by corporate bureaucracy and can experiment with new ideas.
● Building Something of Your Own: The sense of accomplishment and pride that
comes with building a successful business from scratch is a powerful motivator for
many entrepreneurs. They get to leave a legacy and create something that can be
passed down to future generations.

Cons (Challenges of Entrepreneurship):

● High Risk of Failure: Many startups fail within the first few years. Entrepreneurs need
to be prepared to face challenges, overcome obstacles, and potentially lose time and
money invested in their venture.
● Long Hours and Hard Work: Building a successful business requires dedication, long
hours, and hard work. Entrepreneurs often wear many hats and need to be
comfortable taking on a variety of tasks.
● Financial Instability: Entrepreneurs may not have a steady income, especially in the
early stages of their business. They need to be financially prepared for lean times
and manage their cash flow carefully.
● Stress and Pressure: The weight of responsibility for the success (or failure) of the
business can be stressful. Entrepreneurs need to be able to manage stress
effectively and make sound decisions under pressure.

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 ● Uncertainty and Lack of Security: The future of a new business is never guaranteed.
Entrepreneurs need to be comfortable with uncertainty and adapt to changing
circumstances.

● Will you choose to become an entrepreneur???

Becoming an entrepreneur is a deeply personal choice, influenced by personal goals, risk

tolerance, and aspirations. While the potential rewards are significant, the journey is fraught
with challenges and risks. Weighing the pros and cons carefully can help me make informed
decisions about whether entrepreneurship fits with my values and goals. So,my answer is
yes, I’ll choose to become an entrepreneur after I enhance my knowledge and have full
capability to make the right decision, also can handle and dealing all potential risk and
issues that can happen in the future.

● You are manager/ entrepreneur of an automobile company in Vietnam: choose

suppliers

Supplier Selection Criteria:

1. Quality and Reliability:

○ Partner with suppliers known for producing high-quality parts that meet
Vietnamese safety standards.
○ Consider factors like defect rates, warranty claims, and certifications.
2. Cost-Effectiveness:
○ Negotiate competitive pricing while ensuring quality isn't compromised.
○ Explore options for bulk discounts or long-term contracts to manage costs.
3. Location and Lead Times:
○ Consider sourcing from Vietnamese suppliers whenever possible to reduce
transportation costs, support local businesses (aligning with community
eeds), and shorten lead times.
○ If necessary, diversify suppliers across different regions to mitigate risks of
disruptions.
4. Sustainability and Ethics:
○ Align with investor expectations for responsible sourcing by selecting
suppliers with good labor practices and environmentally friendly processes.
○ This can enhance brand image and attract environmentally conscious
customers.

Potential suppliers you might explore:

1. Automotive Components:
○ Bosch Vietnam: Known for electrical components and automotive
technologies.
○ Denso Vietnam: Provides a wide range of automotive parts including air
conditioning systems, radiators, and electronics.
○ Mitsubishi Electric Vietnam: Offers electrical and electronic equipment for
automobiles.
2. Steel and Aluminum:
○ Posco Vietnam: Supplies steel for automotive bodies and components.

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 ○ Kobe Steel Vietnam: Provides steel and aluminum products suitable for
automotive manufacturing.
3. Rubber and Plastics:
○ Bridgestone Vietnam: Known for tires and rubber products.
○ Thai Plastic and Chemicals Vietnam: Supplies plastic components and
materials.
4. Electronics and Navigation Systems:
○ Panasonic Vietnam: Provides electronics components and navigation
systems.
○ Samsung Electronics Vietnam: Offers electronic components suitable for
automotive applications.
5. Logistics and Distribution:
○ Vietnam Post and Telecommunications Group (VNPT): Provides logistics and
distribution services across Vietnam.
○ Gemadept Corporation: Offers logistics and transportation services.
6. Tooling and Machinery:
○ Makino Vietnam: Provides machining centers and advanced manufacturing
solutions.
○ Yamazaki Mazak Vietnam: Offers machine tools and manufacturing systems.
7. Battery Technology:
○ LG Chem Vietnam: Supplies batteries for electric vehicles.
○ Samsung SDI Vietnam: Provides lithium-ion batteries for automotive
applications.

● How do stakeholders’ requirements affect business decisions, actions and

policies?
All stakeholder groups have an impact on a business, but some will have more
impact than others, giving them more power and influence on the activities of the
business. Common areas that stakeholders may influence in a business include
decision-making, aims and objectives, operational issues, sales, costs and profits.
Decision-Making:

● Strategic Direction: Stakeholders, especially influential ones like major investors or

key customers, can shape the strategic direction of the business. Their expectations
may influence decisions on market entry, product development, and diversification
strategies.
● Risk Management: Stakeholders' concerns about risks related to environmental
impact, ethical practices, or market volatility can prompt businesses to adjust risk
management strategies and priorities.

Aims and Objectives:

● Alignment with Expectations: Stakeholders' expectations often guide the

formulation and adjustment of the company's aims and objectives. For example, if
investors prioritize short-term profitability, the business may focus on cost reduction
initiatives or optimizing revenue streams accordingly.

Operational Issues:

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 ● Resource Allocation: Stakeholders influence resource allocation decisions, such as
investments in technology upgrades, workforce training, or expansion projects. Their
preferences can direct where and how resources are deployed within the
organization.
● Process Improvement: Feedback from stakeholders, including employees and
suppliers, can lead to improvements in operational processes to enhance efficiency,
quality, and customer satisfaction.

Sales and Marketing:

● Customer Expectations: Customers are key stakeholders whose preferences

directly influence product design, marketing strategies, and customer service
standards. Meeting customer expectations is crucial for maintaining competitiveness
and market share.
● Market Positioning: Stakeholder input, particularly from industry analysts or market
influencers, can shape how businesses position their products or services in the
marketplace to appeal to target audiences.

Costs and Profits:

● Financial Performance: Stakeholders, particularly investors and shareholders,

monitor financial performance closely. Their expectations for profitability, return on
investment, and dividend payouts influence financial strategies, cost management
efforts, and pricing decisions.
● Sustainability: Increasingly, stakeholders' demands for sustainable practices
influence cost structures and profitability. Investments in renewable energy, waste
reduction initiatives, and eco-friendly products may be driven by stakeholder
pressures.

● Do you see any opportunities for doing business?

Here are a few areas that have possible opportunities for doing business :

1. Technology and Innovation:

○ As technology continues to evolve, there are opportunities in areas such as
artificial intelligence, cybersecurity, blockchain, and digital healthcare
solutions.
2. E-commerce and Online Retail:
○ The shift towards online shopping and e-commerce platforms presents
opportunities for businesses involved in digital marketing, logistics, and
personalized customer experiences.
3. Healthcare and Wellness:
○ With an aging population and increased focus on health and wellness,
opportunities exist in areas like telemedicine, fitness and nutrition products,
and healthcare technology solutions.
4. Sustainability and Green Energy:
○ Businesses that offer sustainable products, renewable energy solutions, eco-
friendly packaging, and environmental consulting services are increasingly in
demand.

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 5. Education and Skill Development:
○ There is a growing demand for online education platforms, vocational training
programs, and skill development courses to meet changing workforce needs.
6. Food and Beverage Industry:
○ Opportunities exist in niche markets such as organic foods, plant-based
alternatives, specialty beverages, and innovative dining experiences.
7. Remote Work and Collaboration Tools:
○ With the rise of remote work, there are opportunities in developing
collaboration tools, remote workspaces, cybersecurity solutions, and digital
communication platforms.
8. Personalized Services and Experiences:
○ Businesses offering personalized services such as personalized health
coaching, travel experiences, entertainment, and luxury goods continue to
attract consumers seeking unique and customized experiences.
9. Financial Technology (Fintech):
○ Fintech solutions including mobile payment systems, peer-to-peer lending
platforms, robo-advisors, and blockchain-based financial services are areas
of growth and innovation.
10. Community and Social Impact:
○ Businesses focusing on social responsibility, community development, and
ethical consumerism are gaining traction, offering opportunities for
sustainable and socially conscious ventures.

● What do entrepreneurs use to grow their businesses and increase wealth.

5 factors (land, labor, capital, entrepreneurship, knowledge)

What are some of the advantages of working for others?

Here are some benefits:

● Stability and Security: Employment often comes with a regular paycheck, health
insurance, and other benefits. This can provide a sense of financial security and
peace of mind, especially when compared to the financial ups and downs of
entrepreneurship.
● Clear Work-Life Balance: Many employers establish clear working hours, allowing for
a better separation between work and personal life. This can be helpful for those who
want to maintain a healthy balance and avoid working long hours every day.
● Structured Training and Development: Established companies often invest in training
and development programs for their employees. This can provide opportunities to
learn new skills, improve your qualifications, and advance in your career.
● Reduced Risk: When you work for someone else, you don't shoulder the financial
burden of business ownership. There's less risk of financial loss if the business
struggles.
● Teamwork and Collaboration: Working in a company allows you to collaborate with
colleagues, share ideas, and learn from others. This social interaction and sense of
belonging can be motivating and fulfilling for many people.

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 ● Clear Career Path: Many organizations have established career paths with defined
roles and promotion opportunities. This can provide a clearer roadmap for
professional development compared to forging your own path in a new venture.
● Access to Resources: Established companies typically have access to a wider range
of resources than a new startup. This can include things like expensive equipment,
software, and technology, as well as established customer bases and supplier
networks.

• What benefits do you lose as an entrepreneur, and what do you gain?

Entrepreneur: Gains vs. Losses

Losses:

Stable Income: Unlike a regular job with a steady paycheck, entrepreneurship often
involves fluctuating income, especially in the initial stages. There is no guaranteed
salary, and financial uncertainty can be challenging.

Work-Life Balance: Entrepreneurs often work long hours, including weekends and
holidays, which can disrupt personal life and relationships. The intense dedication
required can make it difficult to maintain a healthy work-life balance.

Job Security: Starting a business comes with inherent risks. There is no job security,
and the potential for business failure can lead to financial and professional instability.

Employee Benefits: Traditional employment usually comes with benefits such as health
insurance, retirement plans, paid time off, and other perks. Entrepreneurs must
provide these for themselves, often at a higher personal cost.

Defined Career Path: Corporate jobs often come with a clear career progression and
opportunities for promotions. Entrepreneurs must create their own path, which can be
uncertain and unpredictable.

Gains:

● Freedom and Control: You set the direction, choose your projects, and make your
own decisions.
● Potential for High Earnings: Successful entrepreneurs can achieve significant
financial rewards.
● Building Something: The satisfaction of creating and growing your own business
can be highly motivating.
● Flexibility: You can often set your own hours and work from a location that suits you.
● Skill Development: Running a business requires a diverse set of skills, from
management and marketing to finance and operations. Entrepreneurs often develop
a broad skill set that can be valuable in various contexts.

• What are the five factors of production? Which ones seem to be the most important
for creating wealth?

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Five Factors of Production:
The five factors of production are the resources used to create goods and services:

1. Land: Natural resources used in production, like minerals, oil, or agricultural land.
2. Labor: The human effort used in production.
3. Capital: Physical and financial resources used in production, like buildings,
machinery, and money.
4. Entrepreneurship: The ability to identify opportunities, take risks, and organize
production.
5. Knowledge: Data, knowledge, and communication technologies used in production.

Importance for Wealth Creation:

All five factors contribute to wealth creation, but their importance can vary depending on the
industry.

● In a resource-intensive industry like mining, land might be crucial.

● In a knowledge-based industry like technology, knowledge might be the key factor.
● Entrepreneurship is often seen as a key driver of wealth creation, as it combines all
the other factors effectively.

=> Entrepreneurship is the most important factor

What is the difference between revenue and profit?

• What is risk? How is it related to profit?
• Goals of business?

Difference Between Revenue and Profit

● Revenue: Also known as sales or turnover, revenue is the total amount of money
generated from the sale of goods or services before any expenses are deducted. It
represents the income earned by a business from its core operations.
● Profit: Profit is the amount of money that remains after all expenses, including costs
of goods sold, operating expenses, taxes, and interest, have been deducted from the
total revenue. Profit can be categorized into:
○ Gross Profit: Revenue minus the cost of goods sold.
○ Operating Profit: Gross profit minus operating expenses.
○ Net Profit: Operating profit minus taxes and interest. This is also known as
the bottom line or net income.

What is Risk? How is it Related to Profit?

● Risk: Risk refers to the potential for loss or the chance that an investment’s actual
returns will differ from the expected returns. It includes the possibility of losing some
or all of the original investment. In a business context, risk can encompass financial
risk, operational risk, market risk, regulatory risk, and more.

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 ● Relationship to Profit: Risk and profit are closely related. Higher potential profits are
often associated with higher risks. Businesses that take calculated risks can achieve
significant returns, but they also face the possibility of substantial losses. Effective
risk management involves balancing the potential for profit with the acceptable level
of risk.

Goals of Business

The goals of a business can vary, but typically include:

1. Profit Maximization: Ensuring the business is as profitable as possible to provide

returns to shareholders and reinvest in growth.
2. Sustainable Growth: Expanding the business in a sustainable manner to increase
market share, diversify products/services, and enter new markets.
3. Customer Satisfaction: Providing high-quality products and services to meet or
exceed customer expectations, leading to customer loyalty and repeat business.
4. Employee Well-being: Creating a positive work environment that supports employee
satisfaction, retention, and productivity.
5. Innovation: Continuously improving and innovating to stay competitive, meet
changing market demands, and drive business growth.
6. Social Responsibility: Operating in an ethical and responsible manner, contributing
positively to society, and minimizing negative environmental impacts.
7. Operational Efficiency: Streamlining operations to reduce costs, improve
productivity, and enhance overall business performance.
8. Market Leadership: Striving to be a leader in the industry through superior products,
services, and market presence.
9. Financial Stability: Maintaining a strong financial foundation to ensure the business
can withstand economic fluctuations and uncertainties.
10. Stakeholder Value: Creating value for all stakeholders, including shareholders,
employees, customers, suppliers, and the community.

• What are four ways the government can foster entrepreneurship?

One way for the government to actively promote entrepreneurship is to allow private
ownership of businesses.
One of the best things the governments of developing countries can do is to minimize
interference with the free exchange of goods and services.
The government can further lessen the risks of entrepreneurship by passing laws that
enable businesspeople to write enforceable contracts. (ex. UCC)
The government can also establish a currency that’s tradable in world markets
The government can help minimize corruption in business and in its own ranks.

2. Four ways the government can foster entrepreneurship are:

- Providing access to funding and capital.
- Simplifying Business Regulations
- Offering education & training programs
- Promoting innovation and research.

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Why?

1. Providing Access to Funding:

● Explanation: Many entrepreneurs struggle to secure the initial capital needed to

launch their business. Governments can help by:
○ Offering grants or loans: Financial assistance can alleviate the financial
burden and allow entrepreneurs to focus on developing their ideas.
○ Encouraging angel investors and venture capitalists: Tax breaks or other
incentives can attract private investors who are willing to fund promising
startups.
○ Facilitating crowdfunding platforms: Regulations and support for online
platforms can help entrepreneurs raise capital from a wider pool of investors.
● Why it's Effective: Financial resources are a critical hurdle for many aspiring
entrepreneurs. Government programs can bridge this gap and allow more viable
business ideas to come to life.

2. Simplifying Business Regulations:

● Explanation: Complex regulations and bureaucratic red tape can discourage potential
entrepreneurs. Governments can help by:
○ Streamlining the business registration process: Making it easier and faster to
register a business reduces initial hurdles.
○ Simplifying tax regulations: Clear and straightforward tax structures
encourage entrepreneurship and compliance.
○ Offering regulatory guidance: Providing resources and assistance to help
entrepreneurs understand and navigate regulations promotes informed
decision-making.
● Why it's Effective: Excessive regulations can stifle innovation and deter
entrepreneurs from entering the market. Simpler processes encourage business
formation and economic growth.

3. Supporting Education and Training Programs:

● Explanation: Entrepreneurial skills are not always inherent. Governments can help
by:
○ Offering entrepreneurship programs in schools and universities: Equipping
students with the knowledge and skills needed to start a business can inspire
future generations of entrepreneurs.
○ Providing training programs for aspiring entrepreneurs: Workshops and
seminars can teach practical skills in areas like business planning, marketing,
and financial management.
○ Encouraging mentorship programs: Connecting experienced entrepreneurs
with aspiring ones can provide valuable guidance and support on the
entrepreneurial journey.
● Why it's Effective: Education and training empower individuals with the knowledge
and tools needed to start and manage a successful business. This increases their
chances of success and fosters a more entrepreneurial ecosystem.

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4. Promoting Innovation and Research & Development (R&D):

● Explanation: Innovation is a key driver of economic growth, and many new

businesses are born from research and development efforts. Governments can help
by:
○ Providing tax breaks for R&D activities: Financial incentives encourage
companies to invest in research and development, leading to new products
and services.
○ Funding research grants for universities and startups: Government funding
can support the development of new technologies and ideas with high
commercial potential.
○ Creating innovation hubs or research parks: Providing infrastructure and
resources to support collaboration and knowledge sharing among
researchers and entrepreneurs can accelerate innovation.
● Why it's Effective: By fostering innovation and R&D, governments can create an
environment where new ideas can flourish. This leads to the creation of new
businesses, job growth, and economic prosperity.

• What is the difference between effectiveness, efficiency and productivity?

+Effectiveness means producing the desired result.
+Efficiency means producing goods and services using the least amount of resources.
+Productivity is the amount of output you generate given the amount of input, such as the
number of hours you work.
+Technology means everything that make business processes more effective, efficient,
and productive.
• What is empowerment?
In the competitive environment.

Empowerment ( trao quyền) is giving frontline workers the responsibility, authority,

freedom, training, and equipment they need to respond quickly to customer requests.

• What are some of the major issues affecting the economy today?

1. Retired people, although a very lucrative segment, will be draining the economy of wealth.
Social Security has become a major issue.
The government has been spending the accumulated Social Security money instead of
leaving it in a Social Security account. Soon, less money will be going into Social Security
than going out. In short, paying Social Security to senior citizens in the future will draw
huge amounts of money from the working population.
Legal and illegal immigrants have had a dramatic effect on many cities.
Two important changes in the global environment are the growth of global competition and
the increase of free trade among nations.
War and terrorism have drained billions of dollars from the U.S. economy. The threat of
war and terrorism leads the government to spend even more money on spying and the
military.

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 The ecological environment (going green)
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1. Inflation and Rising Costs: Businesses are grappling with rising costs for raw materials,
labor, transportation, and energy. This squeezes profit margins and can force them to raise
prices, potentially leading to lower customer demand.

2. Supply Chain Disruptions: The COVID-19 pandemic exposed vulnerabilities in global

supply chains. Shortages of materials, labor disruptions, and transportation bottlenecks are
causing delays and increasing costs. Businesses need to find ways to diversify their supply
chains and become more resilient to disruptions.

3. Geopolitical Tensions: Conflicts, such as the war in Ukraine, can disrupt energy
supplies, raise food prices, and create uncertainty in financial markets. This can impact
global trade, investment, and business confidence.

4. Rising Interest Rates: Central banks are raising interest rates to combat inflation. While
this can help stabilize prices, it can also slow down economic growth and make borrowing
more expensive. This can make it harder for businesses to invest in expansion or equipment
upgrades.

5. Labor Market Disruptions: Automation and technological advancements are changing

the nature of work. While new jobs are being created, some jobs are being displaced.
Businesses need to invest in retraining their workforce and attracting skilled workers in a
competitive market.

6. Climate Change: Extreme weather events, rising sea levels, and other effects of climate
change can disrupt agricultural production, damage infrastructure, and displace populations.
Businesses face regulatory pressure to adopt sustainable practices, which can increase
costs in the short term. However, there are also opportunities for businesses to develop
innovative solutions for a sustainable future.

7. Income Inequality: The gap between rich and poor is widening in many countries. This
can lead to lower consumer demand, especially for discretionary items. Businesses need to
find ways to cater to a wider range of income levels.

8. Global Debt: National and corporate debt levels are high in many countries. Rising
interest rates could make it more difficult to service this debt, potentially triggering financial
crises. This can create uncertainty and instability in the global economy.

9. Cybersecurity Threats: Cyberattacks on businesses and critical infrastructure can cause

significant economic damage. Businesses need to invest in cybersecurity measures to
protect themselves from data breaches and disruptions to operations.

10. Demographic Shifts: Populations in many developed countries are aging. This can put
a strain on social security systems and lead to labor shortages. Conversely, some
developing countries are experiencing rapid population growth, which can strain resources
and limit economic opportunities. Businesses need to adapt their strategies to cater to
different demographics.

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• What major factor caused people to move from farming to manufacturing and from
manufacturing to the service sector?
1. Technology has made modern farming so efficient that the number of farmers has
dropped from 33% of the population to about 1% today.
Manufacturers, like farms, began using new technology, new tools and machines, to become
more productive. Eventually the consequences in manufacturing, as in farming, was the
elimination of jobs.
The service industry has generated almost all the increases in employment since the mid
1980s. Although its growth has slowed, it remains the largest area of growth.

2. Efficiencies in agriculture led to the reduction in farms and growth in industry that caused
workers to leave the farm and come to the cities. The growth of efficiencies in production
had the same effect as in agriculture. As factories became more efficient and technologically
driven, workers migrated to the service sector.

• What does the future look like for tomorrow’s college graduates?
The strategy for college graduates is to remain flexible, find out where jobs are being
created, and move when appropriate.
High-paying service-sector jobs abound in health care, accounting, finance,
entertainment, telecommunications, architecture, law, software engineering, and more.

We’re in the midst of an information-based global and technical revolution that will alter all
sectors of the economy: agricultural, industrial, and service.

Business Environment
It consists of the surrounding factors that either help or hinder the development of
businesses.

1. The economic and legal environment

2. The tech environment
3. the competitive environment
4. the social environment
5. the global business environment

Quiz midterm:

2. A common characteristic of most entrepreneurs is that they:

a. đúng
accept the risks involved in starting and managing a business.
b.possess a great deal of personal wealth.
c.have a high level of scientific and technical expertise.
d.have experience in running large, complex organizations.
12.Which of the following is a benefit of owning your own business?
a.đúng
Freedom to keep the profits from your business

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b.Shorter work hours
c.Government supported health insurance
d.More camaraderie with employees
13. The CEO of peripheral company QuickDrive uses a leadership style that encourages
employees to discuss management issues with the CEO and to work together to resolve
those issues in a democratic manner. Which of the following statements would the CEO
of QuickDrive most likely make?
a.The key to QuickDrive staying on top in a high-tech industry is not wasting time
checking out what other firms do, but to act immediately on my directives.
b.In a high-tech business, it is more important to invest in technology than to invest in
people.
c.Spending a lot of money to buy out competitors for their technology is likely to
backfire, because QuickDrive is a leader in technology development.
d.đúng
The key to keeping talented employees loyal to QuickDrive is to use a participative
management style and treat them with respect, value their ideas, give them the
resources they need, and expect great things from them.
14.A meaningful vision should address topics such as the organization's:
a.đúng
self-concept and company philosophy.
b.why the company exists and advertising - distribution plan.
c.strategy
d.form of ownership and methods of financing.
T/F QUESTION
1. Management is the process of getting things done through people. (True)
2. Planning involves setting goals and determining how to achieve them. (True)
3. Organizing involves dividing tasks and allocating resources. (True)
4. Leading involves motivating and inspiring employees. (True)
5. Controlling involves monitoring progress and making adjustments as needed.
(True)
6. All managers have the same level of authority and responsibility. (False)
7. Efficiency is more important than effectiveness in business management. (False)
8. Customers always have the strongest bargaining power in a market. (False)
9. Technological advancements can create threats from substitute products or
services. (True)
10. A database is a collection of unorganized data. (False)
11. Businesses aim to avoid all risks in order to maximize profits. (F)
12. A dynamic business environment is one that is constantly changing. (T)
13. Taking calculated risks is essential for business growth and innovation. (T)
14. Businesses with high profits always have low risk. (F)
15. Customer satisfaction is not a factor in the risk equation for businesses. (F)
16. Technological advancements can create new business opportunities. (T)

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 17. Successful businesses are able to adapt to changes in the market. (T)
18. Government regulations can increase risk for businesses. (T)
19. A business with a unique product offering has no threat from substitutes. (F)
20. Taking risks is always the best strategy for businesses, regardless of the
situation. (F)

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