Success in Business - Introduction To Business - ثاني ثانوي

1.2 Success in Business Link to digital lesson www.ien.edu.sa Learning Outcomes Once you have completed this lesson, you should be able to: 1.2.1 Describe actions for success in business. 1.2.2 Explain common business activities along with risks and rewards. Key Terms Technical Skills General Career Skills Risk Focus on REAL LIFE Khalid and Abdullah are planning to visit one of the new Italian restaurants in their area-Ristorante Italia and Mamma's Pizzeria. Since they are both on a limited budget, they are always careful about how they spend their money. Mamma's Pizzeria is famous for delicious pizza and excellent service. Ristorante Italia has more menu items including pizza, pasta, salads, and sandwiches. Khalid and Abdullah both feel the food is good but doesn't have that authentic Italian flavor. Often, the restaurant is crowded, and the service is slow. Because Mamma's is known for its excellent pizza, the pizza prices are higher than at Ristorante Italia. If you were going to eat with Khalid and Abdullah, 1) how would you decide which restaurant to choose, and 2) what actions would you recommend for continued success of these businesses? LO 1.2.1 SUCCESS IN BUSINESS The foundation of an individual's business success will likely involve developing two main types of skills: technical skills and general career skills. Through schoolwork and other experiences, an individual has the opportunity to develop these needed career competencies. Why do most jobs need a mixture of soft and hard skills? General Career Skills Technical Skills Specialized career training, also referred to as hard skills, are the technical skills needed for a specific profession. This training involves competencies in fields such as information technology, accounting, law, engineering, healthcare, education, marketing, real estate, insurance, and law enforcement. Preparation. for careers in one of more of these fields will not only require entry-level knowledge but also ongoing education. In addition to technical training, employers seek workers with general career skills, which are abilities that can be adapted to varied work situations. These talents are often called soft skills. While some of these abilities 32 Chapter 1 | Exploring the Worldof Business and Economics وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 32 08/05/2024 09:13

are acquired in school, others require experience in work settings. The general career skills most often observed in successful workers include: A professional manner that includes honesty, integrity, dependability, wise time management, and a commitment to work hard. Work as a TEAM As a team, select a job that students might consider in the future. Create a description of the education, training, and skills that would be necessary for success in that job. A cooperative attitude with an ability to work well with others in varied settings. ● Taking initiative to overcome obstacles, meet challenges, and adapt to change. A desire for ongoing learning, along with knowledge of technology, especially when working remotely. Creative problem solving and research skills in team settings. Effective written and oral communication skills. A basic knowledge of accounting, finance, marketing, and other administrative and managerial topics. Career Experience It is a good idea to plan to start developing career skills while in school. Workforce abilities may be obtained in several ways. Work-study programs, sometimes called cooperative education, combine school with work-related experience. These programs provide an opportunity to develop on-the-job skills. Not only do individuals learn about technical aspects of the job, but they also learn how to interact in work settings. Internships involve work experience in organizations while learning about a career field. Internships for careers in accounting, finance, marketing, and communications are available with many organizations. Part-time work can provide valuable experience. It allows individuals to learn if they will enjoy a career field. Part-time work experience can also help individuals make contacts. These people can guide them and offer support throughout their working life. Involvement in community service is another type of career experience to develop work habits and organizational skills. Through volunteering, individuals may also acquire an interest in a business area, which could be an indication for their career path. FYI When applying for an internship or job, knowing about the organization and the available position is vital. Successful job candidates clearly connect their training and experiences to the needs of the company. Class assignments provide work-related experiences. Research and communication skills are developed when preparing reports and oral presentations. Team projects offer an opportunity to work with others, a vital skill for every career. Participation in clubs and organizations can develop skills such as goal setting, planning, supervising, and delegating responsibility. Management and Leadership As individuals gain career experience, they may aspire to a management or leadership position. These advanced positions will require an ability to plan, organize, lead, and motivate people, as well as manage the productive resources of the company. Leadership skills are vital for managers. The ability to think strategically, communicate a vision, make decisions, and delegate work will be required. Studies reveal that successful leaders possess integrity, empathy, gratitude, creativity, a cooperative nature, and strong listening and questioning skills. Decision Making One skill that is often needed in work activities, as well as in an individual's personal life, is decision making. As shown in Figure 1-2, a process can be used to guide decision-making activities. وزارة التعليم Ministry of Education 2024-1446 1.2 Success in Business | 33

1. Define the problem. 2. Identify the choices. 3. Evaluate the advantages and disadvantages of each choice. Choose the best alternative. 4. 5. Act on the choice. 6. Review the decision. FIGURE 1-2 THE DECISION-MAKING PROCESS How does using the decision-making process help individuals and businesses make better choices? CHECKPOINT What is the difference between technical skills and general career skills? Life-Span Plan Most of the choices a person makes will require that they give up something else. This is known as a trade-off. For example, money spent on going to the cinema can't be used for something else, such as going to an amusement park. The decision-making process can help an individual select the best and most satisfying alternative. Write an essay that describes how you could use the decision-making process to select a college major for next year that will help you achieve your life-span goals. In what other ways will the decision-making process benefit you in the future? LO 1.2.2 BUSINESS ACTIVITIES, RISKS, AND REWARDS As a person selects a career path, they need to consider the types of businesses that provide employment INT Which types of businesses do you think Saudi Vision 2030 should focus on to boost the Saudi Arabian economy in the future? opportunities. These include: Manufacturing businesses convert raw materials into finished products. These goods include industrial goods, such as plastic parts and machinery, used by other companies, and consumer goods that are sold to individuals and households. • Wholesaling businesses buy items in large quantities to resell in smaller amounts to retailers. Wholesalers, also known as distributors or intermediaries, are the link between manufacturers and retailers. • Retailing businesses sell directly to consumers who are the end users. Retailers include stores, shops, and online sellers that sell everything from food and clothing to electronics and personal care products. ● Service businesses provide professional, technical, and personal services for a price. These may include medical and legal assistance, accounting and tax services, auto repairs, tutoring, and house cleaning. • Agricultural businesses grow crops and raise livestock for food and for use in other products.Aquaculture involves breeding, raising, and harvesting fish, shellfish, and aquatic plants. ● Extracting businesses take resources from the environment and convert them for use by manufacturers. These include mining, forestry, quarrying, and oil drilling companies. 34 Chapter 1 | Exploring the World of Business and Economics Ministry of Education 2024-1446

While each type of business operates in Saudi Arabia, some provide a larger portion to GDP than others. In an attempt to be less dependent on one or two economic sectors, Saudi Vision 2030 proposes to further diversify the economy with expansion of modern and innovative business types, for example, the renewable energy sector. Business Risks Whenever a company implements a business decision, risk is involved, for example, the organization faces the risk of consumers not buying its products or a supplier not delivering materials on time. Risk is the uncertainty of an event or outcome. Every company faces potential risks-from employee theft to natural disasters. Risks may be viewed in these categories: Geographic Risks Changing weather can destroy agricultural crops. A rough terrain can result in transportation difficulties. These and other geographic factors create risks for businesses. Political-Legal Risk Business regulations vary from country to country. Packaging laws, import taxes, and labor safety standards are examples of political-legal factors that can affect operating costs and business success. RISK ASSESSMENT Why is it a good idea for businesses to be aware of the risks they might face? Social-Cultural Risk Cultural differences such as traditions, religious beliefs, and family relationships can create uncertainty when doing business in different settings. Business activities are conducted differently in different parts of the world. Failure to be sensitive to cultural variations can result in business failure even if all other actions are appropriate. Economic Risk Higher prices, changing currency values, and low consumer spending create economic uncertainty. Economic conditions have ups and downs affecting the demand for a company's goods and services. Operational Risks The day-to-day activities of a company also create risks. Failure to innovate or to meet the needs of customers can cause lost profits. A disruption in the supply chain or distribution process also means lower business. Higher prices of production inputs or a shortage of raw materials are other possible risks. Unexpected Risks While many risks can be anticipated to some degree and planned for, unforeseen situations are also a source of risk. Increased competition from new companies and products can occur. A cyber-attack, pandemic, or health crisis are some unexpected risks for which every business must be prepared. When attempting to reduce risks, companies may consider these actions: (1) continually monitor business activities, sales, costs, and other financial data (2) do business in several markets to reduce dependence on just a few customers (3) offer a variety of products and services to maintain diverse revenue sources. FYI To prepare for unexpected risks, a company may simulate a shipping disaster or other situations that interrupt receiving raw materials or shipping products to customers. During these simulations, employees must be ready with backup plans. These risk management activities prepare companies to access alternative solutions. وزارة التعليم Ministry of Education 2024-1446 1.2 Success in Business | 35

Business Rewards Despite many risks, businesses are created and operate to gain various benefits. First, making a profit and earning a living is fundamental. Business owners invest resources and take risks to make a profit. Next, providing goods and services contributes to the quality of life in society. To be successful, a company must pay close attention to the needs and experiences of consumers. Finally, business owners, investors, managers, and workers gain personal satisfaction through working together with government to produce and distribute items that allow people to a fulfilling life. CHECKPOINT How does geography create risks for businesses? 1.2 ASSESSMENT Key Concepts Determine the best answer. 1. An example of a technical career skill would be a. teamwork b. creative problem solving c. software coding d. dependability 2. The first step in the decision-making process involves 3. a. defining the problem b. setting a goal c. identifying the choices d. evaluating alternatives businesses are companies that sell directly to consumers. a. Wholesaling b. Retailing c. Extracting d. Manufacturing 4. Rising consumer prices would be an example of a(n) a. cultural b. economic c. operational d. geographic 36 Chapter 1 | Exploring the World of Business and Economics Ministry of Education ليم 2024-1446 risk.

Make Academic Connections 5. Communication Talk to a family member or family friend about their work situation in Saudi Arabia or elsewhere. Ask about their education, training, current work activities, and career advice for young people. Prepare a short oral or written report with a summary of your interview. 6. Writing Locate an article that discusses qualities of effective managers and leaders. Write a two-paragraph summary of the article; also include actions you might take to develop your leadership skills. 7. Visual Art Create a visual presentation (poster or slides) showing the various risks faced by Saudi businesses. وزارة التعليم Ministry of Education 2024-1446 1.2 Success in Business | 37

2024-1446 XXX XXX XXX W Business Insight Emerging Technology for Business Activities Artificial intelligence, robotics, drones, cloud services, 3D printing, and other new types of technology are changing how you earn, save, spend, and invest. The use of apps, websites, and mobile devices for banking and financial activities is called fintech (financial technology). Saudi Fintech is an initiative of the Saudi Central Bank in collaboration with the Capital Market Authority started in April 2018. Its aim is to develop financial technology in Saudi Arabia and enhance its role in national, social, and economical development. For investors, robo-advisors offer advice based on a person's income, assets, debt, financial goals, and risk tolerance. Digital wallets, also called mobile wallets, are apps that allow storage and use of credit, debit, and loyalty cards. Other fintech features include peer-to-peer (P2P) money transfers, as well as storing ID cards, transit tickets, and event tickets. Cardless banking and contactless in-store payments-using tap and go and tap and pay-reduce debit and credit card use for improved health and safety. Fintech also provides improved financial assistance with automatic savings features, cash-back rewards, and guidance to build an emergency fund. Some platforms rate customer progress on their savings, spending, insurance, and credit use. Prepaid cards are available that allow parents to control and monitor children's spending while teaching wise money management. Fintech is also changing the insurance industry with online start-up companies and InsurTech apps that process applications, claims, and other transactions. Artificial intelligence algorithms quickly provide insurance customers with rate quotes and personalized services, especially among younger clients. One additional Saudi fintech element is RegTech (regulatory technology) to communicate and process local and global compliance standards. These apps and websites focus on anti- money laundering andfinancial fraud. Think Critically 1. Locate an article to identify how future business activities might be conducted by consumers and businesses in Saudi Arabia with the use of an app, artificial intelligence, or other technology. Prepare a brief summary of the article. 2. How might expanded technology for business activities affect career opportunities and needed workplace skills? 38 Chapter 1 | Exploring the World of Business and Economics Ministry of Education ليم