chp 1 into to business activities
DESCRIPTION
ebsTRANSCRIPT
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
Brainscape URL: https://
www.brainscape.com/study?pack_id=2771304
Games: http://www.kongregate.com/games/EdgebeeStudios/swords-and-potions-2