2: The Foundations of Business

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Page ID: 18192

Stephen Skripak et al.
Virginia Tech via Virginia Tech Libraries' Open Education Initiative

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Learning Objectives

Describe the concept of stakeholders and identify the stakeholder groups relevant to an organization
Discuss and be able to apply the PESTEL macro-business-environment model to an industry or emerging technology
Explain other key terms related to this chapter including: entrepreneur; profit; revenue.

2.0: Prelude - Why Is Apple Successful?
This page details the founding of Apple Inc. by Steve Jobs and Steve Wozniak in 1976, its evolution into a global powerhouse with over $233 billion in sales by 2015, and factors contributing to its success, including innovation and dedicated employees. It highlights Jobs' return to the company after being ousted, emphasizing his vision and perseverance as key elements in guiding Apple to recovery and solidifying its status in the technology sector.
2.1: Introduction
This page explores the impact of technology and communication on business, emphasizing increased scrutiny and the demand for corporate responsibility post-2008 financial crisis. Despite strong sales from companies like Apple, many still face challenges. The course aims to familiarize students with different business roles, aiding in their career decision-making.
2.2: Getting Down to Business
This page discusses the nature of businesses, highlighting the distinction between revenue and profit. It details how companies, like Apple, provide goods and services, alongside nonprofits that serve social goals. Key participants include owners and customers, while stakeholders with vested interests may complicate business operations due to conflicting priorities.
2.3: Getting Down to Business
This page outlines the functional areas of business operations: management (planning and organizing), operations (transforming resources into goods/services), marketing (understanding customer needs and relationship management), accounting (financial reporting and analysis), and finance (managing funds for operations and investments). Each area plays a vital role in achieving business goals and ensuring effective resource utilization.
2.4: Functional Areas of Business
This page outlines the functional areas of business operations, including management, which involves resource planning and control; operations that transform resources into quality products or services; marketing, which identifies customer needs; accounting that provides essential financial information; and finance, which focuses on capital planning and management, crucial for new businesses.
2.5: External Forces that Influence Business Activities
This page discusses how businesses, particularly Apple and the fast-food industry, are affected by the macro environment, which includes economic conditions, regulations, consumer trends, and technological advancements. The PESTEL model helps analyze these external factors—Political, Economic, Sociocultural, Technological, Environmental, and Legal—allowing businesses to identify opportunities and threats in a changing landscape.
2.6: End of Chapter Material
This page discusses the key stakeholders in a business—owners, employees, and customers—who may have conflicting interests. It categorizes business operations by functions relevant to business school majors and notes the impact of external factors like the economy and government, utilizing the PESTEL model for analysis. The content references multiple sources on business and economic conditions without providing detailed examples or testimonials.

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