Basic Business

English
For the global marketplace

Business Communication
we need to understand basic
business concepts ()

We live in a market society

Business is part of are life story

Business studies

What are the basic areas of

business?

-marketing
-operations
-accounting
-economics
-finance
- human resource management
- leadership
-quantitative analysis/
-globalization
-ethics

This is the traditional MBA

core curriculum

The MBA
=Masters of Business Administration

For training business executives

(Graduate level degree)

MBA PROGRAMS

Often use the case study

method (Harvard)

Study business cases, business

stories

Using specific cases to study

such things as
Supply-chain

Marketing

(Coca Cola, Starbucks)

Management

Finance

management (Wal-Mart, Dell)

strategy (Google)

(Enron, Bear Stearns)

1. MARKETING
Marketing strategy

A company needs to develop a marketing

plan.
Global? Local?

MARKETING STRATEGY

2. operations
Supply chain management

3. ACCOUNTING
Internal and external accounting

CASH FLOW

4. Economics
Macro and micro

The Big Picture: macroeconomics

MACROECONOMICS
FISCAL AND MONETARY POLICY

Fiscal policy- e.g., raising taxes,

government spending on X
Monetary policy:
raising or lowering interest rates

Microeconomics- operating costs,

profits, etc.

5. Human Resource Management

6. Globalization:
The integration of international markets for:
Commodities ()
Manufacturing ()
labor ()
Capital ()

Features of the global market

place

M&A (mergers and acquisitions)

FDI (foreign direct investment)

High speed capital flows / free flow of capital

(finance)

Privatization

Free trade agreements

7. BUSINESS LEADERSHIP: THE ENTREPRENEUR

Entrepreneur
Entrepreneurship

What is an entrepreneur?
1. A visionary:

innovation

2. A risk taker (risks his or her own

capital)
3. Guts/ courage/ motivations never
give up

Who is this man? (1984)

Virgin Records
Branson started a successful music company
recording new artists
Then, in the early 1980s he decided he wanted
to start an airline!

Also,

it was almost
impossible to get hangers (
) or runways at
Heathrow Airport.

So Richard Branson said:

1. Well fly from Gatwick!
2. We will lease an airplane

And they did: 1984

Virgin Atlantic Limited

Recent photo

Virgin spaceship
Do you want to reserve a seat?

Branson is truly a global entrepreneur

Today over 250 companies under the Virgin brand with
over $8 billion a year in revenue.

*The

entrepreneur is always
challenging the usual way of
thinking in business.

Who is he?

1980s- University of Texas student

As a young man he designed a

high quality PC and started a
company with unique
marketing..direct marketing

Michael Dell

He successfully used global supplychains

.to build one of the most successful

companies in America.
In 1984, Dell's first full year in business, he
had $6 million in sales.

KEY POINT:
MAIN ECONOMIC FEATURE OF
GLOBALIZED BUSINESS

CUTTING COSTS!!!

Cost cutting
labor costs
transportation costs
telecommunications

What company did this woman start?

She started a new type of

company: based on ideas of fair
trade and sustainability.

She started a new type of

company: based on fair trade and
sustainability.

A new type of global business

Green business
Fair trade
Corporate social responsibility (CSR
)

STARTED IN THE UK

Grew 50% annually

Stock grew 500% on the London
Stock Exchange

 New

approach for modern globalized

business: stakeholder

Anita Roddick
The

business has existed for one

reason only to allow us to use our
success to act as a force of
change

..to help protect people and

the environment.

Innovation

American entrepreneur :
Steve Jobs

1984- Macintosh

Desktop PC with graphical interface: this

machine changed the world!

Small businesses and homes and schools could now

have a computer!

Then, in 2001.
He saw the next wave of computing was music.
A visionary guy

Apple: a company with

innovation and value

Changing everyones life with its

products

iPhone: June, 2007

SAM WALTON: AMERICAN RETAIL

GENIUS
What company did he start?

 The

Worlds third largest corporation

according to the Fortune 500 list

The

biggest private employer

in the world with over 2 million employees

Cost

cutting

2.5% OF U.S. GDP IS WAL-MART

70% of their merchandise is

imported from China!....
11% of U.S. trade deficit with
China is because of Wal-Mart!

Strategies

to dominate the retail

market
super efficient supply chain
management

GLOBAL SUPPLY CHAINS

Very efficient
manufacturing
operations in China with
strict inventory
control

IN the 1980s..
Sam Walton was the richest

man in the world

*Outsourcing jobs

*trade deficit

Todays global
challenge..

 What

global company did he start?

Unique marketing mix- no TV word of mouth

Unique management structure- workers have

management responsibilities

Unique product line

Unique corporate philosophy- quality and value

A truly global brand

Companies like Starbucks

have changed the way we
do business, the way we
think about business.

.and the way we live our lives!

Students of business English

Should study business cases of modern global

businesses.

With special focus on innovation, leadership,

corporate social responsibility (CSR)

becoming just
as important as
management!

Leadership

great leader

Gives

us a guiding vision
Inspires us
Encourages creativity/ new ideas
Takes risks
Has passion

A quiet revolution in business

sustainability,

New ideas about leadership and

entrepreneurship

Corporate social responsibility (CSR)

Systems thinking

Systems thinking

Systems thinking

Systems thinking focuses

on the whole, not the
parts, of a complex system.

New types of business

Looking

at the social
and environmental
impacts: stakeholder
value

The modern global economy

Communication

is essential

How to study?????
There

are many good website for business

case studies and business studies in
general

Many online resources.

Aegis global

U.K. business

www.bized.co.uk

BBC Learning (business)