Presentation on theme: "The Motive of Business Why do businesses supply goods and services?"— Presentation transcript:
1 The Motive of BusinessWhy do businesses supply goods and services?Why do people start their own business?
2 The Main IdeaBusinesses seek profit by providing goods and services in exchange for money. Companies thrive on competition, the contest between businesses to win customers. Competition and profit motivate businesses to continually strive to find new ways to satisfy customers.
3 Key Termsany commercial activity that seeks profit by providing good and services in exchange for moneybusinessthe money left over after a business has paid the cost of providing its goods and servicesprofit
4 Key Termsthe contest between businesses to win customerscompetitionthe act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain marketmarket research
5 Key Termsconsumera person who uses goods or services
6 How to Define BusinessYour wants and needs are usually satisfied by a business.Businesses provide consumers with necessities, such as food, clothing, housing, medical care, and transportation.
7 How to Define BusinessBusinesses also provide goods and services that make life easier and better.Businesses seek to make a profit.
8 The Motive of Business: To Make a Profit Without a profit, a company cannot survive.The wealth created by businesses benefits the entire community because businesses pay taxes and provide jobs.
9 The Significance of Competition Competition happens when businesses continually try to improve their products and services and do better than one another.competitionthe contest between businesses to win customers
10 The Significance of Competition What are some different ways businesses can compete?Superior customer service, fastest service, demonstrate concern for community, employees, or environment.What are two ways that companies can compete on the basis of concern for the environment?Conserve and recycle, cause minimal damage to the environment
11 Activities of a Business The success of a business depends on how well key activities are coordinated, managed, and performed.Identifying opportunities for products and/or servicesEvaluating the demand for products and/or servicesManaging the production of goods and/or servicesMarketing the goods and/or servicesKeeping records to satisfy government requirements and improve processes
12 Some business activities should be supported by market research. the act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market
13 Creating a TV commercial ActivityIdentifying opportunities for products and/or servicesEvaluating the demand for products and/or servicesManaging the production of goods and/or servicesMarketing the goods and/or servicesKeeping records to satisfy government requirements and improve processesCreating a TV commercialPaying TaxesMarket ResearchCreating a productMarket Research
14 Target MarketA target market is a group of people identified as those most likely to become customers.Develop a list of shoe stores in your area and the likely target market for each.
15 Businesses make many decisions that impact you, the consumer. Business and YouBusinesses make many decisions that impact you, the consumer.consumera person who uses goods and services
16 Businesses Affect Consumers Graphic OrganizerBusinesses Affect ConsumersBusinesses decide what goods and services to produce.Businesses affect the consumer when a product is discontinued.Business affects you as a wage earner because they provide jobs.
17 Consumers Also Affect Businesses Graphic OrganizerConsumers Also Affect BusinessesConsumers decide what kind of goods and services they want.Consumers decide where they will buy the goods and services they want.The decisions of consumers can determine the success or failure of a business.
18 Define businessBusiness is any activity involving the exchange of money for goods and services.
19 List the activities that every business undertakes when developing new products and services. identify opportunities, evaluate demand, obtain money, manage production, market products, keep records
20 Describe why it is important to understand how business impacts you and how you impact business. Answer pending.