Chapter 1 - Introduction to Business

- Business is to provide goods and services to meet the needs and wants of customers

- providing goods and services to the point
- providing jobs for the people
- contributing to the wealth of the country

Competition

Business is in indirect competition with another business when both businesses sell goods and services that satisfy the same need and wants of customers. These goods and services may fall under different categories. Example , cinema face indirect competition from providers of escape room games as both satisfy customers' wants for entertainment

Business is in direct competition with another business when they sell the same or similar goods and services. Example like taxi companies and private-hire car companies are direct competitors as both provide private transportation on demand

Knowing who their competitors are helps business to find out how to better meet the needs and wants of their customer. A business may choose to do something different from its competitors in order to better satisfy the customer and set itself apart

Goods are things that are tangible
Can be seen or touched

Services are things that are intangible
They can be seen or touched but they can be experienced

Goods-producing
- produce goods that are tangible
- produce goods with the use of resources such as machines and labour

Service-Providing
- provide services that are not tangible but can be experienced
- perform services when sellers interact with customers

Businesses use available resources to produce the goods and services that satisfy the needs and and wants

They carry out activities such as ordering goods to be sold in stores or hiring waiters to serve guests in restaurants

Resources for business activities are classsified into four main categories
- Enterprise
- Capital
- Land
- Labour

Enterprise
- the ability to see opportunities
and take risks in producing goods
and services that earn profits for the business
- Entrepreneurs are people with an enterprising
spirit who start with an enterprising spirit who start and run their own business

Capital
- buildings , equipment and machinery which
are used to produce goods and services
- includes money needed to start the business

Land
- natural resources such as sea , forests , minerals ,petroleum as well as the land itself
- needed to grow crops and build factories to produce goods and services for customers

Labour
- the efforts of the people involved in the production of goods and services
- waiters , chefs and restaurant managers form the labour force of a restaurant. office staff , engineers and construction workers form the labour force of a construction business

Business

use resources

Enterprise

Capital

Land

Labour

to produce

goods

services

to satisfy the customers' needs and wants