Business The goal: Satisfying customer needs a The means: Providing goods and services Process: production(operations) manufacture, process, assemble, create, Factors of production(Inputs: Resources (N, L,K,E) Land and natural resources Lab Capital Entrepreneurship A person who risks time, effort, and money to start and operate a business Outputs: Goods and services(marketing logistics) ■ sales, promotion, distribution, services,…
Business ◼ The goal: Satisfying customer needs ◼ The means: Providing goods and services ◼ Process: production (operations) ◼ manufacture, process, assemble, create, …… ◼ Factors of production (Inputs: Resources ) (N, L, K, E) ◼ Land and Natural resources ◼ Labor ◼ Capital ◼ Entrepreneurship ◼ A person who risks time, effort, and money to start and operate a business ◼ Outputs: Goods and services (marketing & logistics) ◼ sales, promotion, distribution, services, …
Business profit a The purposes of profit To reward business owners for producing goods and services consumers want As payment for business owners assuming the risks of ownership ■ Stakeholders All of the different people or groups or people who are affected by the policies and decisions made by an organization
Business Profit ◼ The purposes of profit ◼ To reward business owners for producing goods and services consumers want ◼ As payment for business owners assuming the risks of ownership ◼ Stakeholders ◼ All of the different people or groups or people who are affected by the policies and decisions made by an organization
The Relationship between Sales Revenue and profit Profit is what remains after all business expenses have been deducted from sales revenue. A loss(negative profit) results when a firm's expenses are greater than its revenues Sales revenue Expenses Profit
The Relationship Between Sales Revenue and Profit ◼ Profit is what remains after all business expenses have been deducted from sales revenue. A loss (negative profit) results when a firm’s expenses are greater than its revenues
The goal Maximize Profit by satisfying customer requirement Profit: revenues costs Revenues: sales volume x price ■ Costs: a costs of goods sold(COGS); Inputs: Resources ( L, K, N, e)(logistics) Purchase/procurement/sourcing, transportation, warehousing, handling, Expenses a selling, general, administrative, depreciations
The Goal ◼ Maximize Profit by satisfying customer requirement ◼ Profit: revenues – costs ◼ Revenues: sales volume x price ◼ Costs: ◼ costs of goods sold (COGS); ◼ Inputs: Resources (L, K, N, E) (logistics) ◼ Purchase/procurement/sourcing, transportation, warehousing, handling, …… ◼ Expenses: ◼ selling, general, administrative, depreciations, …
Business activities a purchase, sale, lease, and rental of personal or real property Manufacturing, processing, and/or marketing of products, commodities, or any other personal property a sale of services to the public, > the activities of providing goods and services
Business: activities ◼ purchase, sale , lease, and rental of personal or real property; ◼ Manufacturing, processing, and/or marketing of products, commodities, or any other personal property; ◼ sale of services to the public; ➔the activities of providing goods and services