4. Three Kinds of
BusinessesProducers/Manufacturers
■ Manufacturers take
the extractor’s
products or raw
materials and change
them into a form that
consumers can use.
■ Examples would be:
cannery, builder, or
computer company
5. Three Kinds of
BusinessesProducers/Manufacturers
(cont.)
■ Custom Manufacturing: building a specific and
unique product to meet the needs of one
customer.
■ Mass Production: a large number of identical
products are assembled using a continuous,
efficient procedure.
■ Processing: changes the form of materials so
they can be consumed or used to manufacture
other products. (i.e. oil refinery)
6. Three Kinds of
BusinessesIntermediaries
Two Most Common Types:
Retailers: sell products directly
to consumers at a place of
business.
Wholesalers: business that
sells the products of a
manufacturer or extractor to a
retailer.
7. Three Kinds of
BusinessesIntermediaries(concl.)
■ Marketing, another type, includes:
■ Transporting and selling products
■ Identifying, developing, & testing new
products
■ Packaging goods to protect & make attractive
■ Storing goods
■ Designing store windows/displays
8. Three Kinds of
BusinessesIntermediaries (cont.)
Marketing activities add value to products
by bringing them where the consumer is,
at a time they are wanted, in the
assortment wanted and at prices the
consumer is willing to pay.
9. Three Kinds of BusinessesService
Businesses
■ Service business: a
firm that does things
for you instead of
making or marketing
products.
■ Services businesses
represent the fastest
growing part of our
business world. Why?
11. Business ActivitiesRaise Capital
■ Businesses need
start-up money
(personal, loans, etc.)
■ Also need to continue
to raise capital
throughout their life
for equipment, new
buildings, buying
other businesses, etc.
13. Business ActivitiesEmploy and Train
Personnel
Most important business
resource is people.
All businesses need a
system for attracting,
employing, and training
people.
14. Business ActivitiesMarket Goods &
Services
■ Includes product and
service planning, &
product design and
development.
■ Businesses use
marketing to increase
their effectiveness
and profits.
15. Business ActivitiesMaintain Business
Records
■ Recordkeeping
system, usually on
computer, is essential
to show how the
business is doing.
■ The records:
■ Determine whether a
businesses making or
losing money
■ Provide info. for
management decisions
■ Supply data for a
variety of government
reports, including
taxes.
16. Impact of a New Business on a
Community
■ Multiplier Effect: new jobs in a community
tend to create additional jobs.
■ More people with money demand
additional goods & services
■ More demand may cause more businesses
to open
■ New business may attract other
businesses.
17. Group Activity
Nelson Armstrong conducted a survey and
found that people wanted a pickup-and-
delivery laundry service. To get started in
business, he used $3,000 of his savings
and got a loan for $8,000. He purchased
a truck, some large laundry bags, some
office supplies, and accounting software
for his computer. He passed out flyers
18. explaining his new business in some
apartment complexes and a college dorm.
He was efficient, did good work, and
delivered on time. He got so many
customers he had to hire two part-time
helpers. He then also added a service his
customers wanted: ironing and pressing.
He analyzed his income and expenses and
found that he was making a very nice
profit.
Identify the business activities performed
by Nelson.
