Objective 1.01 Understand the purpose and the functions of business 1.01 Purpose and Functions of...
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Transcript of Objective 1.01 Understand the purpose and the functions of business 1.01 Purpose and Functions of...
Objective 1.01 Understand the purpose and Objective 1.01 Understand the purpose and the functions of businessthe functions of business
1.01 Purpose and Functions of Business
Purpose of BusinessPurpose of Business
Businesses fulfill the needs and Businesses fulfill the needs and wants of consumers.wants of consumers. Consumers use goods and servicesConsumers use goods and services Customers purchase goods and Customers purchase goods and
servicesservices Businesses sell goods, services or Businesses sell goods, services or
both to consumersboth to consumers Goods—clothing, cars, computers, CDsGoods—clothing, cars, computers, CDs Services—hairdresser, dry cleaner, Services—hairdresser, dry cleaner,
lawn care, babysittinglawn care, babysitting
Need verses WantNeed verses Want
Need – something one must have to Need – something one must have to survivesurvive
Want – unfulfilled desireWant – unfulfilled desire
ProductsProducts
Goods – tangible itemsGoods – tangible items Services – intangible itemsServices – intangible items
Motivation to start a Motivation to start a businessbusiness
Profit motive—desire to make money; Profit motive—desire to make money; see the opportunity to make money in see the opportunity to make money in the marketplace. Profit = revenue - the marketplace. Profit = revenue - expenseexpense
Opportunity to meet wants and needs of Opportunity to meet wants and needs of consumersconsumers
Opportunity to increase competition in Opportunity to increase competition in the marketplacethe marketplace
Businesses are investment opportunities Businesses are investment opportunities for individuals—future incomefor individuals—future income
Functions of BusinessFunctions of Business
Accounting—recording and Accounting—recording and reporting financial activity and reporting financial activity and transactionstransactions ExamplesExamples
Paying billsPaying bills Collecting money from customersCollecting money from customers Paying taxesPaying taxes Preparing employee payroll checksPreparing employee payroll checks Reconciling bank statementsReconciling bank statements Investing cashInvesting cash
Functions of BusinessFunctions of Business
ManagementManagement
Organization – assigns roles and Organization – assigns roles and responsibilities of group and responsibilities of group and individualsindividuals
Control – makes sure goals are metControl – makes sure goals are met Planning – develops plans and Planning – develops plans and
forecasts for the futureforecasts for the future
Functions of BusinessFunctions of Business
MarketingMarketing Satisfies the needs and wants of Satisfies the needs and wants of
consumers through exchangeconsumers through exchange Based on four Based on four ““PP ’’ss””
ProductProductPrice (establishing the price of the Price (establishing the price of the
product)product)Placement (placing the product in Placement (placing the product in
attractive and convenient sales attractive and convenient sales locations)locations)
Promotion (advertising)Promotion (advertising)
Functions of BusinessFunctions of Business
Information TechnologyInformation Technology Uses technology to share knowledge, Uses technology to share knowledge,
facts, and data to others (co-workers, facts, and data to others (co-workers, customers, and suppliers)customers, and suppliers)
ExamplesExamplesMaintains e-mail accountsMaintains e-mail accountsMaintains software applicationsMaintains software applicationsMaintains processing systemsMaintains processing systemsMaintains hardware for all technology Maintains hardware for all technology
usedusedMaintains computer networksMaintains computer networksResponsible for computer securityResponsible for computer security
Functions of BusinessFunctions of Business
OperationsOperations Considered the Considered the ““back officeback office””
Involves behind the scenes Involves behind the scenes paperwork required to complete paperwork required to complete all transactionsall transactions
Found in both the service and the Found in both the service and the manufacturing sectormanufacturing sector
Functions of BusinessFunctions of Business
Human ResourcesHuman Resources Manages Manages ““peoplepeople”” relations within the relations within the
companycompany Helps TRAIN workers to develop the skills and Helps TRAIN workers to develop the skills and
knowledge needed to be successful on the jobknowledge needed to be successful on the job Responsible for hiring employeesResponsible for hiring employees Responsible for firing employeesResponsible for firing employees Selects employee benefits and enrolls all Selects employee benefits and enrolls all
employees in the benefits (insurance, employees in the benefits (insurance, retirement, etc.)retirement, etc.)
Helps employees pursue educational Helps employees pursue educational opportunitiesopportunities
Key TermsKey Terms
ProfitProfit Profit motiveProfit motive CompetitionCompetition NeedsNeeds WantsWants ConsumerConsumer CustomerCustomer GoodsGoods ServicesServices