Introduction to Business Wants and Needs Dr. Steve Hays Freshman Seminar Bishop Kearney High School

Wants and Needs Drive the Economy Suppose you have $ You could use it to buy lunch or go to a movie. Which of these things do you want, and which do you need? What determines the difference between what you want and what you need?

Definitions Wants – –Things that you do not have to have to survive, but would like to have Needs – – Things that you must have in order to survive Was the last thing you bought a want or a need? Why do people worry so much about wants and needs?

Do Not Be Anxious - Matthew 6:25-33 Therefore I tell you, do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing? 26 Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? 27 And which of you by being anxious can add a single hour to his span of life? [7] 28 And why are you anxious about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin, 29 yet I tell you, even Solomon in all his glory was not arrayed like one of these. 30 But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O you of little faith? 31 Therefore do not be anxious, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. 33 But seek first the kingdom of God and his righteousness, and all these things will be added to you.[7] ESV Reformation Study Bible (2005)

Satisfying Wants and Needs Goods –Physical products Services –Tasks that businesses perform for consumers (most companies that sell goods also provide services to their customers)

Resources Most people have unlimited wants for goods and services Most consumers are able to satisfy their basic needs Few people have enough resources to satisfy all their wants –What do we mean when we talk about resources? –Resources are items that people can use to make or obtain what they need or want Money, fuel, labor

Make the Most of Resources Resources limit the number of needs and wants people can satisfy To make the best of limited resources, consumers must determine what their needs are and satisfy them first How can you make the most of your resources?

The Decision Making Process Identify the Situation: Whether the problem is one that occurs daily or comes up only a few times in a lifetime, must identify the problem Make a decision: Use the information you have gathered to rank the alternatives and make a decision. Once you make a decision, you can plan how to reach your goal. Evaluate your decision: once in effect, ask yourself whether you achieved the results expected. Would you make the same choice again? Identify possible courses of action: Take time to think through the situation so you can identify and consider all the important alternatives Determine the Pros and Cons: Consider your values and goals when determining the advantages and disadvantages of each alternative

Personal Decision Making You may not use all of the steps of the decision making process every time you but something; however, the longer a decision may affect your life, the more you need to evaluate your options and consider the possible consequences

Business Decision Making Competition among businesses is intense Businesses must best decide how to use and conserve their resources Decisions must be thoughtful and consistent with goals

Competition What is it? –The contest between businesses to win customers Why is competition possible? –Because companies have the freedom to produce the products they think will be the most profitable For companies to successfully compete in the global economy, they must offer quality products with outstanding service at competitive prices –How can companies accomplish this?

Business Activities When developing products and services, companies undertake the following business activities: –Identify opportunities for products or services –Evaluate the demand for products or services –Obtain start-up money and operating capital –Manage production of goods and services –Market the goods and services –Keep records to satisfy the government and improve processes The first two should be supported by market research

Market Research What is it? –The act of gathering and analyzing information about wants, needs, and preferences of consumers in a certain market

For Discussion How do profit and competition motivate businesses? How does business impact you and how do you impact business?

Homework Find one article in the newspaper, a magazine, or online regarding current events in the world of business. Read the article and write a minimum two paragraph summary of the article and how it is impacting the business world locally, nationally, or globally. Also consider how it affects you. Attach the article to the written assignment.