1. BUSINESS ACTIVITIES Identify the three types of businesses
Lesson 2.1
2/4/2019
LESSON 2.1
BUSINESS ACTIVITIES
Identify the three types of businesses
Describe the six business activities
INTRO TO BUSINESS

2. 2.1
Types of Businesses
Producers
Intermediaries
Service businesses

3. 2.1
Producers
Producers are businesses that create products used by individuals and other businesses.
If they take resources from nature to make their products or for direct consumption, they are referred to as extractors.
A major group of producers is manufacturers, businesses who get supplies from other producers and convert them into their own products.

4. 2.1
Intermediaries
Intermediaries are businesses involved in selling the goods and services of producers to consumers and other businesses.
Most common types of intermediaries are retailers and wholesalers.
A retailer sells products directly to consumers at a place of business.
A wholesaler is an intermediary business that sells the products of a manufacturer or extractor to a retailer.
Some intermediaries help in distributing and selling products and services.

5. Examples of Service Businesses
2.1
Service Businesses
Instead of offering products for sale, a service business performs activities that are consumed by customers.
Both businesses and consumers use service businesses.
Examples of Service Businesses
Accountants
Landscapers
Painters
Baby sitters
Lawyers
Pet sitters
Dentists and doctors
Online travel agents
Web designers

6. Business Activities Generate ideas Raise capital
2.1
Business Activities
Generate ideas
Improve or offer something new
Good or better than the competition
Raise capital
Capital resources to operate a business is critical
Financial resources are needed to purchase:
Buildings and equipment
Hire and train employees
Day-to-day operations

7. Business Activities Buy goods and services Employ and train personnel
2.1
Business Activities
Buy goods and services
Needed for operating a business
Include inventory of goods
Expenses and equipment
Employ and train personnel
Most important resource: People
Most businesses have a Human Resource department to hire, train, and recruit

8. Business Activities Market goods and services
2.1
Business Activities
Market goods and services
Without good marketing, even the best products and services might not be known and, therefore, not purchased by consumers
Maintain business records
Computer technology to analyze financial data
The failure to keep adequate records is a major reason why some businesses fail

9. BUSINESS OWNERSHIP Describe the nine forms of business ownership
Lesson 2.2
2/4/2019
LESSON 2.2
BUSINESS OWNERSHIP
Describe the nine forms of business ownership
Identify five business management activities
INTRO TO BUSINESS

10. Forms of Business Ownership
2.2
Forms of Business Ownership
Common Forms
Sole proprietorship
Partnership
Corporation
Other Forms
Franchises
Cooperatives
Nonprofit corporations
Joint ventures
S corporations
Limited liability company

11. Common Forms of Business
2.2
Common Forms of Business
A business owned and operated by just one person is called a sole proprietorship.
A business owned and managed by a small group—often not more than two or three people—who have entered into an agreement is called a partnership.
A business owned by a number of people and operated under written permission from the state that charters it is called a corporation.

12. United States Business Ownership
2.2
United States Business Ownership

13. 2.2
Franchises
A franchise is a written contract granting permission to a businessperson to sell someone else’s product or service.

14. 2.2
Cooperatives
A business owned by the members it serves and managed in their interests is called a cooperative.
In a consumers’ cooperative, consumers buy goods and services together at lower prices than each person could buy individually.
A producers’ cooperative, usually a farm organization, gives the producers greater bargaining power in selling their products and allows them to be more competitive in the marketplace.

15. Nonprofit Corporations
2.2
Nonprofit Corporations
Corporations that are created for social, political, charitable, educational, or general welfare purposes are known as nonprofit corporations.

16. 2.2
Joint Ventures
An agreement between two or more companies to share a business project is known as a joint venture.

17. 2.2
S Corporations
The S corporation gets its name from a section of the Internal Revenue Service code.
Many small businesses favor this type of corporation.
One advantage of the S Corporation is the elimination of double taxation.

18. Limited Liability Company
2.2
Limited Liability Company
A limited liability company (LLC) combines the best features of a corporation and a partnership.
It provides liability protection for the owners but does not require a complex set of organizational and operating requirements such as those needed for a corporation.

19. Management Activities
2.2
Management Activities
Plan
Organize
Staff
Lead
Control

20. 2.2
Plan
The process of thinking, gathering, and analyzing information, as well as making decisions about all phases of the business, is called planning.

21. 2.2
Organize
The process of determining what work has to be done and who is to do it is called organizing.

22. 2.2
Staff
Staffing includes the many activities involved in finding, selecting, hiring, training, evaluating, and rewarding employees.

23. 2.2
Lead
Directing employees in their work so that they perform their tasks correctly and in a timely manner is called leading.

24. 2.2
Control
When managers or supervisors compare what has been accomplished with what was planned, they are engaging in the process known as control.

25. EFFECTIVE MARKETING Explain what marketing involves
LESSON 2.3
2/4/2019
LESSON 2.3
EFFECTIVE MARKETING
Explain what marketing involves
Identify the functions of marketing
INTRO TO BUSINESS

26. 2.3
Marketing Basics
Marketing is the process of informing the general public about goods and services that are available for sale at a convenient location or online.

27. 2.3
Marketing Strategy
The plan that a company develops to show how it will use marketing to achieve its goals is called its marketing strategy.
Target Market
A group of individuals or businesses that has similar product needs is called a target market.
Marketing Mix
Product
Place - Distribution
Price
Promotion

28. Marketing Orientation
2.3
Marketing Orientation
Businesses that have a marketing orientation consider the needs of customers when developing products and services.

29. 2.3
Marketing Channels
The path that a product travels as it goes from producer to consumer is called a channel of distribution.
There are two basic channels of distribution, direct and indirect.
A direct channel brings the product to the consumer directly from the producer.
The indirect channel consists of one or more businesses that come between the producer and the consumer.

30. Functions of Marketing
2.3
Functions of Marketing
Product/service management
Distribution
Selling
Marketing-information management
Financial analysis
Pricing
Promotion

31. Functions of Marketing
2.3
Functions of Marketing
Product/service management
Marketers assist with the design, development, maintenance, improvement, and acquisition of products and services that meet consumer needs
Information and test results related to a new product or service are gathered and utilized.

32. Functions of Marketing
2.3
Functions of Marketing
Distribution
There are many steps taken to get the product or service to potential customers in the most efficient manner.
Distribution involves giving careful consideration to such things as shipping, handling, and storing products and getting them to the desired locations in a timely manner.

33. Functions of Marketing
2.3
Functions of Marketing
Selling
Communicating directly or indirectly with potential customers to learn about their needs and wants and then trying to satisfy those needs and wants is part of the selling function.
Sales Person

34. Functions of Marketing
2.3
Functions of Marketing
Marketing-information management
Gathering information from the target market through surveys.
Use statistics to create or maintain those products/services

35. Functions of Marketing
2.3
Functions of Marketing
Financial analysis
Business: create a budget
Customers: given financing options

36. Functions of Marketing
2.3
Functions of Marketing
Pricing 3 goals of pricing:
cover costs and generate a profit
set a price that consumers will consider to be a good value
be competitive
Markup: The amount that is added to the cost of producing a product or service

37. Functions of Marketing
2.3
Functions of Marketing
Promotion: Marketers search for effective ways to communicate with consumers and encourage the purchase of their goods and services.
Advertising: Radio, TV, Internet, contests, product displays, sponsorships
Promote the benefits of their products