BUSI 101

To: Professor Fulbright
From: Nandi Williams
Date: April 2, 2016
Re: Case Study Chapter One

Comments:

1. Should oil and gas companies be allowed to engage in fracking, or should the United States ban the practice? Should certain regulations be put in place? Defend your answer using examples from the text. Fracking, like many other business solutions is a catch 22 however, I think it is worth researching instead of banning it completely. Fracking seems to have quite a bit of benefits to our economy lowering the unemployment rate and creating 600,000 jobs. It also gives the US a leg up in natural gas production making us less reliable on foreign oil and other countries and making the US the lead in natural gas production. As a result, fracking is a way for the US to slow down our damage to the environment and is a way to grow our economy. For that reason, I believe it should still be an option for oil companies to venture into. I think with research as to how fracking can be done without damaging the earth’s tectonic plates and possibly finding sites far from residential homes where fracking can take place without hurting our other natural resources, the US can find a way to fracking an all around good resolution to two of our nations biggest problems.

2. While fracking might have flown under the radar during the Industrial Revolution, the relationship era requires companies to build long-term relationships with customers—some of whom may oppose the practice. Imagine that you’re a marketing manager for a gas company that is about to venture into fracking. What steps will you take to maintain current customers? How will you address potential new ones? Fracking appears to be a serious controversial issue that I find hard to get those who oppose to agree with. I think the best way to market fracking is show current customers, as well new ones, the benefits of fracking production. Focusing on how this practice can benefit them with lower gas rates or prices with promotional ads, I believe is the best way to attract customers. I would also market that our company is bettering the environment which will benefit their lives in general. However, I because fracking is so controversial I would not put too much emphasis that our change in business is starting that practice. I would emphasize that we are changing our business for the better and therefore as our customers, you will have new advantages and new value.

3. America’s oil and gas companies are among the nation’s largest; Exxon Mobil, Chevron, and Phillips 66 alone generate more than $850 billion in revenue a year. The oil and gas industry is growing rapidly—especially since the introduction of fracking—and many companies are desperate for young business professionals to join their ranks. Would you consider a career in the oil and gas industry? Why or why not? If so, what sort of work would you like to do? If not, what other career path could you see yourself taking? I think that fracking is a move towards a moral solution to what seems to be an immoral solution to those who oppose. I do think fracking has the potential to improve our economy and environment, however I also believe there is a way recover the damage it does or has done to our earth’s core and other natural resources. I would consider a career in the oil and gas industry if there is a position that research and find ways to make fracking beneficial or finding new ways to create natural gases.

BUSI 101

To: Professor Fulbright
From: Nandi Williams
Date: April 2, 2016
Re: Chapter One Review Questions

Comments:

1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Factors that contribute to constant change in business are technology, the economy’s stand point, social issues that may effect the conduct of business, social media, competition or a shift in demand of a product. I think the pace is likely to accelerate over the next decade because rate of technological advancement is also accelerating which directly effects how and what products are produced and sold.

2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit?

Entrepreneurship can generate jobs for the economy. If the business is successful, the entrepreneur, employees and the economy benefits. If there is a surplus in revenue, then there is room for bonuses for the employees. This allows for more disposable income to be put back into the economy when spent.

3. When did American business begin to concentrate on customer needs? Why?

Customer service became important in after WWII in the marketing era. Businesses began to differentiate their products between their competitors by marketing and creating brands.

4. How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses?

A nonprofit organization goal is to better the community. At times when the government looses funding to do so, a nonprofit will fill a community’s needs. It is business-like as far as creating jobs and goods and services however, it does not generate business to primarily make a profit.

5. What are the factors of production? How can economies grow when one or more of the factors is weak?

The factors of production are natural and human resources, capital and entrepreneurship. If one or more factors is weak the economy can grow by strengthening the other factors.

6. What are the five dimensions of the business environment? Discuss the key elements in each area as they relate to U.S.-based businesses.

The five dimensions of business environment are: economic environment, competitive environment, global environment, technological environment, and social environment.
Economic: the government reduces the risk of business which is effected by corruption
Competitive: developing long-term relationships with customers and speed to market
Global: Free trade and GATT
Technological: the internet and e-commerce
Social: demographics such as diversity, aging population, worker’s expectations and social responsibility.

7. What are some key strategies for developing a competitive edge in today’s competitive global market? How important is customer satisfaction?

Some key strategies for developing a competitive edge are: capital used to create goods or services, natural resources that can be valuable in their natural state, human resources coming from who works within the company and entrepreneurship of whoever is launching the business. Customer satisfaction is very important because customer loyalty needs to be established by creating a good product and good service. This will also generate new customers as well.

8. How has the rise of the World Wide Web changed business practices? What are the benefits and drawbacks for business? For consumers?

The internet has giving the business the technology to become more efficient as well as effective. For example, E-commerce has allowed customers to shop online without having to go to a location or stop purchasing due to the locations opening and closing hours. The downside of E-commerce is that the consumer has to wait for the delivery of their product instead of instant gratification. Also there is the possibility of online theft when purchasing a product.

9. How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How?

The definition of diversity now includes, gender, race, religion and sexual orientation. Having a diverse workforce can help a company be more innovative in creative new products and marketing them due to the difference in ideals and mindsets. This allows for reaching a broader audience.

10. How has the global free trade movement impacted business? Who benefits? Why? Who loses? Why?

The global free trade movement brought together individual economies and has encouraged free trade which lowered the prices of goods. In a result that appears to be most beneficial, free trade could affect the rate of which products are produce. In the end this can affect underdeveloped countries as we rely on them to produce a lot of our goods.