BUSINESS IN TODAY’S WORLD

Chapter 1

NEEDS

A need is an item you need for survivalExamples?

FoodShelterClothing

WANTS

A want is an item that you do not actually need to survive!

Why is it important to understand wants in business?

SATISFYING WANTS

You satisfy wants by providing a Good or a ServiceWhat is a good

Any item for sale that can be weighed or measuredExamples?

What is a serviceA task that a person or machine performs

Examples

UNLIMITED WANTS

Concept that says we always want more then what we have

Typically do not have enough resources to satisfy our wantsThis is called Limited Resources

Very few people can satisfy their wantsWhy

OPPORTUNITY COST

The cost of choosing one item over anotherExamples?

VALUES AND GOALS

Value What is a value?Where do they come from?

GoalWhat is a goal?

Why look at values and goals in business?

FOUR FUNCTIONS OF BUSINESSOrganizing

Planning long CEOOwner

ManagingDay to Day operations

Plant ManagerGeneral ManagerDirector of human resources

FOUR FUNCTIONS CONTINUEDProducing

Getting hands dirty doing the jobWorkersDesignersArtists

MarketingHow we sell our products

SalesAdvertisingResearch

THE DECISION MAKING PROCESS

Step 1: Identify the problems

Step 2:List the alternatives

Step 3: Determine the pros and cons

Step 4:Make the best decision

Step 5Evaluate your decision

WHAT IS BUSINESS

Business is all the activities of an individual or group involved in producing and distributing goods and services to customers

What makes a successful businessFiguring out what the customer

wants!!!

YOUR ROLE IN THE ECONOMY

ConsumerBuying products

Wage Earnerworking

CitizenHaving a role in Government

Voting