Free Enterprise System encourages individuals to start and operate their own business in a competitive system, without government involvement Marketplace.

Free Enterprise System

Free Enterprise Systemencourages individuals to start and operate their own business in a competitive system, without government involvement

Marketplace determines prices through interaction of supply and demand

US has modified system since we have government involvement on a limited basis.

Freedom of OwnershipBusiness ownership – entrepreneurs

intellectual property rightspatent – you own the rights to an item or ideatrademark – word, symbol, or color that identifies a good or

service and it cannot be used by anyone but the ownercopyright – involves anything that is authored by an individual.

the author holds exclusive right to reproduce or sell work

RIM out to patent BlackBerry slider

What do you get if you mesh a dual-orientation handset together with a slide-out keyboard and a tracker ball? Potentially, the next BlackBerry from Research in Motion (RIM), if its latest patent application is anything to go by.

RIM to add a slide-out keyboard to the BlackBerry?The patent, filed as number 20080051041 with the US Patent and Trademark Office, is for a “Hybrid portrait-landscape handheld device with trackball navigation and Qwerty hide-away keyboard”. Since the Qwerty keyboard’s hidden ‘underneath’ the phone’s screen, it looks very different to existing BlackBerry models, such as the Pearl 8120

The following categories of work have copyright protection:

(1) literary works

(2) musical works, including any accompanying words

(3) dramatic works, including any accompanying music

(4) pantomimes and choreographic works

(5) computer databases

(6) pictorial, graphic, and sculptural works

(7) motion pictures and other audiovisual works

(8) architectual works

(9) sound recordings

Competitionstruggle for customers

price competition – focus on sale price of product or service

nonprice competition – compete on factors not related to price

monopoly – exclusive control over a product or means of producing it

Business risk – potential of loss or failure

Supply and Demandsupply – amount of goods producers are willing to make and sell

demand – refers to consumer willingness and ability to buy products

when supply and demand interact it creates different conditionssurplus - supply exceeds demandshortages – demand exceeds supplyequilibrium – supply equals demand

Project Non price competition: look up hybrid cars and compare prices to gasoline engine, and electric car prices. Use edmunds.com

Price competition – 42” Plasma or LCD TV. Discuss prices and why they differ. (Features?, etc)

Pick a product. Determine if it price/nonprice competition and compare prices of the product.

Business Opportunities Types of Business – business can be

classified by its size and scope, its purpose, its place within an industry.◦ Size and Scope – Large or small. Scope refers to

extent of business operations Small - < 100 employees. Operated by 1 or few

individuals. 95% of all businesses in US, and employ over 50% of private sector

Large - >1,000 employees

◦ Domestic vs. Global Domestic sells in own country. Growth is limited Global sells in more than one country.

Purpose – For-Profit vs. Nonprofit

for profit - seeks to make money from its operations

nonprofit - uses money it makes to fund cause identified in charter of business

Purpose (continued)◦ Public vs. Private sector

Public – government Private – non – government

Industry – group of establishments primarily engaged in producing or handling same product or group of products or services

Industrial MarketExtractors, Manufacturers, Wholesalers, Retailers,

Service

Functions of Business◦ Production and Procurement

Production – creating, expanding, manufacturing, or improving on goods and services

Procurement – buying and reselling goods that have all ready been produced. Retail and wholesale businesses function in this manner

◦ Marketing All activities from time product leaves manufacturer

until reaches consumer are marketing activities

Role is to provide support to buying and selling functions

◦ Management Process of achieving company goals by effectively

using resources thru planning, organizing and controlling.

Planning – establishing company objectives Organizing – specific operations like scheduling, record

keeping, delegating Controlling – overseeing and analyzing budgets, financial

statements.

Choose company that produces product you use. Answer following questions◦ Large or small◦ Domestic or global◦ For profit or nonprofit◦ Public or private◦ Industry.◦ Manufacturer, wholesalers, retailers◦ Examples of marketing activities

Project