Unit 1- Understanding Business

What Is Business? Definition: An organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purpose of making a profit.

4 Ways to Describe A Business 1) Type of Ownership; 2) Goods or Services Provided; 3) Function in the Community; 4) Types of Jobs Provided

Basic Definitions Need: Want: Item necessary for survival Called essential goods or services. Examples? Want: Not necessary for survival, but still desired Called luxury goods or services. Examples?

Psychological Test 1. I would prefer to win: a) a $5000 scholarship to the University of my choice b) $5000 to be spent at the retail stores of my choice c) $5000 to throw an awesome party for all my friends

Psychological Test b) a superb sound system 2. I would prefer to have: a) a laptop computer and colour laser printer b) a superb sound system c) a wardrobe from Le Chateau, Mexx, Tristan and America or Banana Republic

Psychological Test 3. I would select a job: a) in an automotive assembly plant at a starting salary of $35000 and guaranteed wage increases of at least 4% per year. b) As a marketing representative with I.B.M. at a starting salary of $25000 where increases would range from 0% to 30% depending on how well I performed my job.

Psychological Test 4. If I had the chance to go to a party which all my friends would be at but the party was the night before a major exam, I would: a) go to the party and risk getting a lower grade; even though I know I could still pass b) stay home and study

Psychological Test 5. Assume you have to prepare a Christmas wish list today. Select the list containing the item(s) that would be at the top of your list. List A List B List C List D List E Food, warm clothing Money ( living expenses or for savings) Brand names clothes, watches, cars, video games Designer clothes, designer perfume, iPod, iPhone. Laptop computer, educational books, fitness equipment, etc.

Rating Chart Question Response Point 1 A B C 5 4 3 2 D E Total To calculate your score on this test, determine the number of points received for each question based on the table below. Question Response Point 1 A B C 5 4 3 2 D E Total

What Needs Are Important To You? Points Category 12 -13 Physiological/Biological 14 -15 Safety 16-19 Social/Belonging 20- 22 Self - Esteem 23- 24 Self - Fulfillment

Motivation Theory- Maslow’s Hierarchy of Needs

Basic Definitions Producers Consumers Good Service People who provide goods and services Consumers People who buy or use goods and services Good Items that we can see, touch, taste – tangible items. Have monetary value. Service Items that we cannot see and touch – intangible items.

Basic Definitions Entrepreneur Not-For-Profit Organization Person starting a business to solve a problem or take advantage of an opportunity Is in a business to satisfy a need that is not being met in the marketplace Not-For-Profit Organization Business that does not seek to make a profit Usually a charitable organization that helps people in need. Examples?

Basic Definitions Co-Branding Businesses share space in order to reduce costs of operation and to increase the opportunity for profit

Economic Resources Means through which goods and services are made available to consumers 3 Kinds of Economic Resources 1) Natural Resources Raw materials from earth, water, air 2) Human Resources People who create the goods or services 3) Capital Resources Buildings, equipment, tools, factories, etc.

Homework Answer Q’s 1-4, “b” only on p. 9.