Page 33 - Business Principles and Management

Unit 1

Consumers should realize that the prices of goods and services are affected by
expenses that arise from operating a business. Employees should realize that a busi-
ness cannot operate successfully, and thereby provide jobs, unless each worker is
properly trained and motivated to work. The economic health of a community
is improved when groups in the community are aware of each other’s obligations.

INTRAPRENEURSHIP

Sometimes large businesses are not viewed as places that encourage the creativity
that leads to new ideas and opportunities. Some talented employees leave to start
their own businesses when they believe they are not able to use all of their talents.
To keep their businesses on the cutting edge and to encourage their creative em-
ployees, some larger employers are supporting intrapreneurs. An intrapreneur is
an employee who is given funds and freedom to create a special unit or department
within a company in order to develop a new product, process, or service. Although
the main company finances the new venture, intrapreneurs enjoy the freedom of
running their operations with little or no interference from upper managers.
Some of the largest corporations in the United States provide intrapreneurship
opportunities that allow valuable employees to provide the company with innova-
tive products and services. IBM and other major corporations such as 3M (which
makes Scotch tape, Post-it Notes, and a variety of other products) and General
Electric have also captured the innovative and entrepreneurial talents of employees.
Employees benefit because they risk neither their
salaries nor their savings to launch a new business.
Employers benefit by keeping creative employees
who might have started successful competing busi-
nesses. Furthermore, employers and consumers ben-
efit because new and better products, processes, and
services are introduced at a quickened pace through
The free-enterprise economy of the United States intrapreneurships.
has demonstrated remarkable growth. That In recent years, businesses that struggled for
growth is highlighted in data prepared by the U.S. survival in a global economy looked for ways to
Bureau of Economic Analysis. Point your browser increase employee productivity and commitment.
to www.thomsonedu.com/school/bpmxtra. Two methods were sharing profits with employees
Review the information illustrating changes in and offering employees the opportunity to become
the U.S. economy from 1990 to 2005. Analyze owners of the company through the purchase of
the information and draw two conclusions you stock. These programs provide an extra incentive
believe are the most interesting or surprising. for employees to increase their efficiency and ef-
Using data from the table, prepare a graph or fectiveness. As a business becomes more success-
chart to support each of your conclusions. What ful and profits increase, the employees benefit by
are some reasons you believe the U.S. economy receiving a percentage of those profits or a higher
has been so successful?
value for the stock they own. Companies benefit by
obtaining funds from employees who buy shares
www.thomsonedu.com/school/bpmxtra
and by having a loyal, productive workforce.

STUDYING BUSINESS PRINCIPLES AND MANAGEMENT
Whether you plan to operate a business of your own, move into a top management
position in a large company, or work as a valuable and valued employee for a com-
pany, you benefit from being well informed about the production, marketing, and
financial activities of the business. As an owner, you must have a complete under-
standing of all phases of business operations, including employee relations and
government regulations. This knowledge will also give you many advantages
as an employee in organizations that empower their personnel to take greater

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