1 What is a business 2 There are different types of business

1.       What is a business?

2.       There are different types of business. Choose two types of business from the following list:

o    publicly traded profit-oriented businesses

o    government organizations

o    not-or-profit organizations

o    service organizations

o    Partnerships.

Give an example of the following for each type of business:

o    a business for each type

o    the products/services it provides

o    three key performance indicators that would determine its success

o    How information technology could be used to increase its competitive advantage.

3. In the case on McCain, identify three different stakeholder groups that are affected by the business decisions that McCain makes and describe how each might be affected?

4. Using Porters Five Forces and SWOT Analysis where do you think that McCain\'s competitive advantage is most at risk?

Solution

Publicly traded profit oriented businesses

For example, Walmart. It is into retail business. It buys products from manufacture in bulk and sells end product to consumers in small quantity. Its performance can be analysed through the amount of sales, net profit margin and asset turnover. Information technology has reduced its advertising and promotion expenses and hence helped it in making a low price store.

Service organization

Example: United States Department of Commerce. This organization takes care of commercial activities in United States of America. This is a federal agency. Its performance can be measured as % change in GDP, opening of new ventures and easement of current policies. Information technology helps this organization in keeping records in a better manner and take decisions.