1. 1. INTRODUCTION Definitions: Business The various operations of trade or industry e.g. marketing An economic activity which is primarily organized and directed to manufacture or produce goods and services at a profit. A commercial enterprise or establishment. An occupation, trade or profession Any of the various operations or details of trade or industry A commercial enterprise or establishment, a firm factory or store The amount or volume of trade

2. Introduction Cont’d Commerce – concerned with trade and other human activities that help people exchange goods and services. These are called aids of trade and they include: Finance Banking Insurance Market Microfinance Can also be defined as a component of business which includes all activities, functions and institutions involved in transferring goods from producers to consumers.

3. Business Aim Achieve the most efficient distribution of goods and services so as to maximize the satisfaction of human needs and wants.

4. Human Needs Needs Versus Wants Needs are state of felt deprivation of some basic satisfaction. E.g. food, shelter, clothing, safety, belonging. Wants: desires for specific satisfiers of these deeper needs.  While people’s needs are fewer, their wants are many.  Wants are shaped by one’s society e.g. an American needs food but wants a burger Human needs are internal forces which force/urge an individual to look for ways and means of reducing the urges or satisfying the needs and wants.

5. Human Needs Abraham Maslow posited a hierarchy of human needs. He argued that lower needs must be met before moving to the next higher level.hierarchy of human needs Below are the levels of human needs: /Social /Security

6. Maslow’s Hierarchy of Needs 1. Physiological needs: It is the bodily and unsustainable needs e.g. shelter, food, clothing, health Satisfy these needs first so as to motivate people 2. Safety/security needs: It is the need to be free from physical danger and fear of loosing job, property or shelter. It includes social security i.e. provision for future e.g. gratuity/retirement benefits paid to employees. 3. Social/affiliation needs. It is the need of love, feeling of belonging and human relationships. Since people are social beings they need to belong and socialize with other employees.

7. Maslow’s Hierarchy of Needs 4. Ego/esteem needs: It is the need for self respect and respect from others. 5. Self-actualization need. It is the desire to become what one is capable of attaining in life. It is the need for self fulfillment and to realize ones potential.

8. Class Discussion Students to criticize the Maslow’s Hierarchy of Needs

9. The Concept of Utility Utility is the ability or capacity of a good/service to satisfy a human need. It is also the usefulness or value of that product. There are 4 types of utility: i) Form Utility Created when a business converts a given raw material from its original form into another form that yields greater or different satisfaction.

10. The Concept of Utility cont’d ii) Place Utility Created when an individual trader or company transports products to a more accessible and convenient place for the customer. iii) Possession Utility Created by increasing the desire or willingness to own a product, e.g. through advertising. iv) Time Utility Created by ensuring products are made available when customers want them.

11. The Input-Output Model of a Business Firm This model illustrates the many business functions and management systems essential for effective production and delivery of goods/services. The major elements include: Inputs The conversion mechanism Outputs The environmental opportunities and threats

12. The Input-Output Model cont’d Inputs Organizational Resources Land Labor Capital Entrepreneurship Outputs Goods Services FIRM a) Management Control Systems Planning Organizing Staffing Controlling b) Functional Areas Marketing Transportation Productions Environmental Forces

13. Importance of Business to Society Raising people’s standards of living Provide employment and income to people Enabling improvement of infrastructure Vehicle for economic development Promoting the welfare of society through CSR

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