VirtualTeamChallenge:Spill!

TaskOne:Business

StudentHandout

Overview

ABusinessformed byanindividualorgroupinordertopursueeconomicgoals.

SomeKeyTermsfromclass:

1.EconomicGoals:Refertotangibleorintangibleachievementsthatanindividualoragroupchoosestopursuewhicharealllinkedtothepursuitofprofit.

2.Revenue:Describestheamount ofmoneyabusinessearns

inagivenperiodoftime. Expensesareresourcesabusinessusesupinordertoproducerevenue. Ifthedifferencebetween theamount ofmoneyabusinessearns(revenue)andtheamount ofmoneyitspends(expenses)ispositive,

itiscalledProfit. Whenthefigure isnegative,itiscalleda

Loss.

3.MerchandisingOrganization:Anorganizationorbusinessthat'resells'goods. Thesetypesoforganizationshaveaninventoryofgoodsthattheypurchasefrommanufacturersordistributors,andthenreselltotheircustomers.

4.ManufacturingOrganization:Anorganizationorbusinessthatproducesor'manufactures'products. Thesetypes

oforganizationstypicallyconvertrawmaterialsand/orcomponentsintoassembledend-products thatitdistributestoitscustomers.

5.ServiceOrganization:Anorganizationorbusinessthatrendersservices,orperformsactivitiesanddutiesforothersforprofit.Thesetypesoforganizationsusuallysellintangibleadviceorservices,ratherthantangiblegoods.

WhatisBusiness?

Considerthis:Youareoneofthefirstmodernhumanstoarrivewalkinguprightinprehistoric society. Duringtheday,youwalkfromyourcavedowntothevalleysoyoucanpickwildberriestoeat. However,thewalkfromyourcavetothefieldsbelowislongandtreacherousandyouneedbasketsinordertocarryyourberriesasyoumakethedailytrip. Sowhatdoyoudo?

Archaeological evidencesuggeststhathumansessentiallyproducedorgathered whattheyneededforthemselves,andtradedwith eachotherforwhattheydidn'thave. For

example,thebasketweaverinthecaveacrossthehollowmayreallylikeberries. Hecouldgiveyoubasketsifyoubroughthimenoughberriestomakeitworthhiswhile.

Nowsupposethatthebasket-weaverisn'ttheonlyprehistoricinhabitantofyourvalley. Saythefishermanisalsointerested

intradingwith you,asisthesandal-maker. Soon,otherpeople

inthecavesnearbyseeyouwearing sandalsandeatingfishandyoubegintocollectandtradeallkindsofdesirableitemsbecauseofallofyourbartering.Atsomepoint, youfindthatyouarespendingmoretimetradingthegoodsyou'vebarteredforthanyoudocollecting berriesbutyouneedtocollectberriesinordertocontinue trading!Youmayturntootherprehistoric humanstohelpyoucollectberrieswhileyouspendyourtimetrading.Thatway,allofyouwould enjoysandals,fish,basketsandahostofotherprehistoric comfortitems

madebyothersinthecavesnearby.

Astimewearson,yourealizethatyounolongerevenneedtoworkintheberryfieldstotradegoodslikefoodandclothingandprovideeveryonewith theirneeds.Theindividualshelpingyoupicktheberriesensurethatyoudonothavetosingle-handedlypickberries,tradeforgoods,andprovide

everyonewith everythingtheyneeded. Youhavefound awaytoworktogethertoprovideforeveryone'sneedsandhaveformed abusiness.

TaskOne:Business

BusinessinYourWorldToday

Takenotesbelowontheoptionalteacher-led,in-classexercises:

TaskOne:Business

BusinessInNewCity

YouareabouttoenterNewCity-abrand-newplacemeanttogiveyouauniqueintroductiontotheworld ofbusiness-forthefirsttime. Now,it'stimetolearnalittlemoreaboutyourroleinNewCity.

WhatamIdoinghere?

AtermthatmaybeusedtodescribeyourroleinNewCityisaconsultant. Do

youknowwhatthatmeans?Aconsultant isabusinessprofessionalwhoprovidesspecificorspecializedknowledge,orexpertadviceinaparticularareaofexpertise.

Insomesituations,organizationsliketheNewCitygovernmentundertakemajorprojects-orarefacedwith criticalsituations-andneedadditionalexperiencedstafftoassistwith theincreasedworkloadforaspecificperiod. Asaresult,theyhire-orenterintoacontractwith -another organizationtoprovidethemwithconsultantsjustlikeyou. Theorganizationtowhichyoubelongisknown asaprofessionalservicesfirm,andtheNewCitygovernment,forwhichyouwork,isknown asitsclient.

GoodLuck!