Business in Our Economy Mr. Soule
Four Kinds of Business Extractor: A business that grows products or takes raw material from nature. -Ex: Farmers, miners, fisherman, oil extractors, lumber, and etc. -Some extractor’s products are ready to be sold just as they come from the Earth. Examples? -Most food products and raw materials need some processing or change before the consumer can use them. John Deere S680 combine in Irrigated Corn. – My Big Campus
Manufacturers Manufacturers: Takes the extractor’s products or raw material and changes them into a form that consumers can use. - This process may take many steps before it reaches the consumer. Meaning each step may have to go to different locations. - Corn has to be drove to the mill to be grinded into flour. This then has to be packaged or sent to another location to be made into cereal. POINT to REMEMBER: Together extractors and manufacturers are industries that change the form of resources from their natural state into products for the consumer. 1.Custom Manufacturing: Building a specific and unique product to meet the needs of one customer. -Examples: Bicycles, dentures, etc… Can you think of any more?
Manufactures Cont. 2.Mass Production: A large number of identical parts are assembled using a continuous, efficient procedure. -automobiles, sugar packets, etc… Can you think of any more? https://www.mybigcampus.com/library/347683 3.Processing: changes the form of materials so they can be consumed or used to manufacture other products. ***Warning*** https://www.mybigcampus.com/library/347682
Marketers Marketer: A business that is involved with moving goods from producers to consumers. -Importance is if the products are not available where and when the consumers want to buy them, their value diminishes. Think about if you had to go to the producer to buy things… - Marketer is more than just transporting and selling products. They help to identify, develop, and test new products. -They store goods until they are needed by other marketers or for the consumer. -2007-08 changed the way marketers store material -Marketers add value to products by bring them where the consumer wants them.
Service Business Service Business: A business that does things for you instead of making or marketing products. -The service industry is the fasted growing industry in the US -Lawyer, pilot, landscaper, and etc… -Service business could help move material from business to business. -ProTrans International structure:
Business Activities Most Organizations serve 7 basic activities: -Generating Ideas: Business are created by an idea either new or a way to improve an existing business. A business must continue to create new ideas to survive. Most companies have an R&D department. -Raising capital: Shark tank baby, banks, etc… What is capital? -Buying Goods and Services: Business must buy goods or services so they can resell to make a profit. Think about profit margin, what is it again? -Using Human Resources: Need employees to run a business, so they need to be able to hire, train, and develop. HR department: employment laws , health, and safety regulations, and employee rights. -Marketing Goods and Services: Assist in the design and development of products and services the will meet the needs of perspective customers. Business use marketing to increase their effectiveness and the profits they make.
Business Activities Cont. Keeping records: ALL business must have some sort of record keeping system. 1. Determining whether a business is making or losing money. 2. Providing information for management decisions 3. supplying data for a verity of government reports, including tax forms.
The impact of a new Business on a community. What do you think?