THE PRODUCTION PROCESS products That can be purchased Offered on the marketplace A business develops products /output Inputs Land Machinery Raw materials labour Transformation process outputs Finished goods services services intangible a benefit / assistance goods tangible durable /non durable examples shelf life Factory Machinery Workers Design Money Pruductive efficiency: using the minimum number of inputs to produce the maximum number of outputs The ratio reduces costs prices Goal of the production process provide products and services At competitive prices meet needs and wants at competitive prices in the shortest time

THE PRODUCTION PROCESS products That can be __________ Offered on the marketplace A business develops products /o______ Inputs Land Machinery Raw materials labour T_____________ process outputs Finished goods services services in______ a benefit / assistance goods ta_______ _________/non __________ examples shelf life Factory Machinery Workers Design Money Pruductive efficiency: _______________________________________ The ratio reduces costs prices Goal of the production process provide ________________ At competitive prices meet _______________ at __________prices in the _________time

NEEDS AND WANTS Necessary for surviving Not essential for surviving Basic needs: Food Shelter Protection from heat, cold, disease Are important for improvements Are infinite Vary according to a person’s Geoographical location Age Job health Some are seen as needs in modern life, e.g. mobiles, cars, computers

NEEDS AND WANTS Necessary for _______ Not essential for ________ Basic needs: F_______ S________ Protection from ______________ Are important for im_________ Are in______ Vary according to a person’s G __________________ A _______ J _______ H _________ Some are seen as needs in modern life, e.g. ___________________

FACTORS OF PRODUCTION land Production site Natural resources labour Human input Human capital: workers with competences and skills A well-managed company has a well-managed human capital capital Material wealth Production capital: machinery, heavy equipment, the buildings (factory, warehouse…) Resource capital: natural resources and the pysical space occupied Intellectual capital: creativity, experience, entrepreneurial spirit, know-how / patents / trademarks enterprise Entrepreneurs set up ventures risking resources Entrepreneurs control the other three factors of production

FACTORS OF PRODUCTION land _____________________ labour Human in____________ Human c______________: workers with competences and skills A well-managed company has a well-managed human capital capital Material ______________ (as_______) Production capital: ____________________________________________ Resource capital: _______________________________ Intellectual capital: _________________________________________ enterprise Entrepreneurs set up v_______________ risking resources Entrepreneurs __________________ the other three ____________________

MARKETING AND ADVERTISING WAREHOUSING Raw materials or manufactured goods are stored in warehouses until they are exported or distributed TRANSPORT Goods need to be transported to the consumer. Modes of transport are: road, rail, sea or air LOGISTICS Logistics departments manage the flow of goods, energy and personnel COMMERCE Insurance companies finacially cover risks for losses or damage Refers to the activities and procedures involved in buying and selling things DISTRIBUTION Supplying goods, either directly (to the customer) or indirectly (through middle-men such as wholesalers, brokers, retailers BANKING Banks hold money and offer loans and credit lines to businesses MARKETING AND ADVERTISING Raising consumer interest and awareness of a product or service There are different ways: print, broadcast, digital media BRANCHES OF COMMERCE INSURANCE

MARKETING AND ADVERTISING WAREHOUSING Raw materials or manufactured goods are s________ in w_______ until they are exported or distributed TRANSPORT Goods need to be transported to the consumer. Modes of transport are: _______________________________ LOGISTICS Logistics departments manage the f_________ of g__________, e__________ and p___________ COMMERCE Insurance companies finacially cover risks for __________________________ Refers to the activities and procedures involved in buying and selling things DISTRIBUTION Supplying _______________, either directly (to the __________) or indirectly (through m__________ such as _____________________________ ) BANKING Banks hold money and offer l_____________ and c______________ to businesses MARKETING AND ADVERTISING Raising consumer interest and a________________ of a product or service There are different ways: ________________________ BRANCHES OF COMMERCE INSURANCE