chp 1 into to business activities

INTRODUCTION

TO

BUSINESS

ACTIVITIES

WHAT IS A BUSINESS?

A business can be set up by an individual or a group of people.

Video: http://www.youtube.com/watch?v=vQMVXHftb-I

Why?To meet needs and wants of customers.

http://www.womenlines.com/entrepreneur-of-the-month-suria-mohd/

WHAT IS A BUSINESS?FROM RAGS TO RICHES

HOW BUSINESS CAN ADD VALUE TO THE COMMUNITY?

$ Providing goods and services to the people

$ Contribute to the wealth of the country

$ Provide Jobs for people

Business

Goods& Services

Wealth Jobs

TYPES OF BUSINESSES

$ Goods Producing

$ Service

GOODS PRODUCING

$ Produce goods that can be seen and touched.

$ Produce goods with the use of machines and /or labour

Examples :

Creative Technology Ltd (manufacturer of sound cards for

computers),Building and Construction.

OTHER TYPES OF GOOD PRODUCING COMPANIES

SERVICE

Produce services that cannot be seen or touched but can be

experienced.

Services are performed when sellers interact with customers

Such as:

• Retail - Tangs

• Education - ITE

• Travel & Tourism – Travel Companies

OTHER TYPES OF SERVICES

BUSINESS RESOURCES

Resources are needed for a business to produce goods &

services.

4 main groups of resources:

• Land

• Labour

• Capital

• Enterprise

LAND

Natural resource such as • Rivers• Forests• minerals and • Oil

Land is needed to grow crops or build factories to produce goods to meet customers’ needs and wants.

LABOUR

Labour is the effort of

people involve in

producing goods and services.

Examples:

• chefs

• bus drivers

• tour guides

CAPITAL

Capital refers to buildings, equipment & machinery used to

manufacture goods & services.

ENTERPRISE

Enterprise refers to the use of business resources to produce

goods and services and earn profits.

Entrepreneur is a person who takes risks to start and run his

own business. But it has to be calculated risk.

WHAT HAPPENS IF RESOURCES ARE LIMITED?

Cannot produce enough goods and services for customers.

Why?

• Customers needs and wants are unlimited.

• Resources are limited.

• Businesses have to find other resources to bring them the

most profit.

Example: Baking Cakes Versus Baking Bread

CAKES OR BREAD?

Ingredients for Cakes

Total Cost: $20

Ingredients for Bread

Total Cost: $8

As the manufacturer, I would make bread because it costs cheaper.

DIRECT COMPETITION

Same business by selling the same or similar products.

INDIRECT COMPETITION

Business that sells products that satisfy the same

needs of customers as the competitor BUT the

products fall under different categories.

VS.

Thank you

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