Chapter 1 - Introduction to Business
Changing Business Environment
- businesses compete with one another for customers , competition can be direct or indirect
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- direct competition : they sell the same or similar goods and services
- indirect competition : is when both businesses sell goods and services that satisfy the same needs and wants of customers
Goods and Services
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> goods are things that are tangible
can be seen or touched and when we buy goods , we can take them home with us
example : bags and shirts are some examples of goods
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> services are things that are intangible
cannot be seen or touched , but they can be experienced
example : medical treatment and education are some examples of services
Types of Businesses
- produce goods that are tangible
- use of resources such as machines and labour
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goods producing example :
manufacturing such as Yeo Hiap Send Ltd is a leading manufacturer of food and beverage products
building and construction such as Lum Chang Building Contractors is a building and construction company whose projects include the Bukit Panjang MRT station
agriculture such as Kok Fah Technology Farm uses advanced agricultural systems and technologies to produce high-quality homegrown leafy vegetables
- provide services that are not tangible but can be experienced
- sellers interact with customers
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service providing example :
retail such as TANGS is a retailer that sells a variety of goods ranging form clothing and beauty products to household goods
education such as The Institute Of Technical Education is a post-secondary education institute that provides career and technical education
travel and tourism such as Wildlife Reserves Singapore is the parent company of attractions such as the Jurong Bird Park , Singapore Zoo etc
Resources for Business Activities
- produce goods and services that satisfy the needs and wants of the customers . they carry out activities such as ordering goods to be sold in stores or hiring waiters to serve guests in restaurants
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- business activities that are classified into four main categories :
> Capital [ refers to buildings , equipment and machinery which are used to produce goods and services which therefore includes money needed to start the business ]
> Enterprise [ refers to the ability to see opportunities and take risks in producing goods and services ]
> Labour [ refers to the effort of the people involved in the production of goods and services ]
> Land [ refers to the natural resources such as sea , forests , minerals , petroleum , as well as the land itself ]
Chapter Summary
business use resources [ capital , enterprise , land and labour ] to produce goods and services to satisfy the customers needs and wants
What is a business?
- business is to provide goods and services to meet the needs and wants of customers
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what is needs and wants ?
needs : goods and services that are necessary for survival such as food , water , clothing and housing
wants : goods and services that are not necessary for survival but which we would like to have