Lesson for Grade 11 Significance of production theory in business

2. BUSINESS
IS ENGAGE IN PROVIDING GOODS AND SERVICES
TO CUSTOMERS WITH THE GOAL OF MAKING
PROFITS & ENGAGE IN RETAILING GOODS THAT
THEY BOUGHT FROM PRODUCERS OR PRODUCE
THE GOODS THAT THEY SELL.
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3. SOCIO-ECONOMIC IMPACT OF A BUSINESS
•BUSINESS SHOULD NOT JUST ALL ABOUT PROFITS.
•IT IS ALSO CONCERNED WITH CONSUMER WELFARE, JOB
CREATION, ENVIRONMENTAL ISSUES, UPLIFTING THE QUALITY
OF LIFE, AND CONTRIBUTING TO THE ECONOMY.
•BUSINESS CAN IMPACT THE CONSUMER, THE SUPPLIERS AND
THE INVESTORS, THE GOVERNMENT, AND HOUSEHOLDS.
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4. IMPACT ON THE CONSUMER
•A NEW BUSINESS, ESPECIALLY ONE THAT IS INNOVATIVE AND FOCUSED
ON BRINGING SOME NEW PRODUCT OR SERVICES TO THE MARKET, IS
ALWAYS WELCOME TO THE CONSUMER WHO IS LOOKING VALUE FOR HIS
MONEY.
•BUSINESS WILL TRY HIS BEST TO WIN THE CONSUMER AWAY FROM THE
EXISTING SELLERS BY OFFERING SOMETHING THAT WILL BENEFIT THE
BUYERS.
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5. ONE GOOD WAY TO INNOVATE THE PRODUCT
•COME UP WITH NEW FEATURES THAT ARE NOT FOUND IN
THE EXISTING COMPETING GOODS
•IN THE FORM OF A BETTER APPEARANCE
•A NEW FEATURE OR INGREDIENT OR A NEW CONVENIENT
WAY OF MAKING THE PRODUCT AVAILABLE
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6. •AS LONG AS A NEW BUSINESS CAN PROVIDE NEW GOODS
AND SERVICES, BETTER QUALITY OF GOODS AND MORE
OPTIONS, THE CONSUMER CAN BENEFIT FROM IT. BUT IF A
BUSINESS COMES UP WITH A LOW QUALITY GOOD AND
DOES NOT PROVIDE THE CONSUMER VALUE FOR HIS
MONEY, THEN THIS BUSINESS WILL HAVE A NEGATIVE
IMPACT ON THE MARKET.
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7. IMPACT ON SUPPLIERS AND INVESTORS
•A NEW BUSINESS WILL ALSO PROVIDE OPPORTUNITIES FOR SUPPLIERS AND INVESTORS
•IF A NEW CONSTRUCTION COMPANY IS SET UP, THEN THIS OPENS UP OPPORTUNITIES
FOR THE OTHER BUSINESSES THAT WILL SUPPLY THEM THEIR NEEDS, TOOLS, WOOD,
CEMENT, STEEL, PAINTS, NAILS, SCREWS, AND DECORATORS. MANY SUPPLIERS WILL NOW
GET A CHANCE TO SELL TO THE NEWLY ESTABLISHED BUSINESS, WHICH MEANS INCOME
FOR THEM.
•THESE SUPPLIERS WILL NOW NEED TO PRODUCE MORE OF THEM AND THEY WILL NEED TO
HIRE MORE WORKERS WHO WILL EARN WAGES FROM BEING EMPLOYED.
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8. •MORE CAPITAL WILL BE NEEDED TO INVEST IN THE
PRODUCTION OF THESE TOOLS AND MATERIALS,
GENERATING AGAIN INCOME FOR THE ECONOMY.
INVESTORS GET TO EARN RETURNS ON THEIR
INVESTMENT, WITH CAPITAL PLOWED BACK INTO MORE
INVESTMENTS AND GENERATING MORE INCOME FOR THE
ECONOMY, THUS, LEADING TO ECONOMIC GROWTH.
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9. IMPACT ON HOUSEHOLDS
•NEW BUSINESS MEAN EMPLOYMENT OPPORTUNITIES FOR THE FILIPINO.
THOSE WHO HAVE JOBS BUT ARE EARNING LOW-WAGES MAY FIND BETTER
PAYING JOBS WITH THE NEW COMPANIES. UNEMPLOYED WORKERS LOOKING
FOR WORK MAY HAVE THE CHANCE OF BEING EMPLOYED BY THESE
COMPANIES. THE POOL OF UNEMPLOYED WORKERS WILL DEFINITELY
DECREASE. BEING EMPLOYED WILL ENABLE THEM TO BUY THEIR BASIC
NEEDS AND EVEN SOME LUXURIES. THIS MEANS THAT THEIR QUALITY OF LIFE
AND THEIR STANDARD OF LIVING WILL IMPROVE.
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10. •SUCCESS STORIES ON TELEVISION SHOWS FEATURE RAGS TO RICHES
STORIES OF ENTREPRENEURS WHO USED TO BE VERY POOR, BUT WITH
HARD WORK AND PERSISTENCE, WERE ABLE TO MAKE THEIR
BUSINESS SUCCEED, ENABLING THEM TO SEND THEIR CHILDREN TO
GOOD EXPENSIVE SCHOOLS, BUILDING BIG HOUSES, AND BUYING TWO
OR MORE CARS HOUSED IN THEIR GARAGE. THE OWNERS, BECAUSE OF
THEIR SUCCESS, MANAGE TO ACQUIRE WEALTH AND BUY ASSETS
WHICH ARE FRUITS OF THEIR HARD WORK.
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11. IMPACT ON THE COMMUNITY
• CORPORATIONS AND EVEN SMALL BUSINESSES HAVE INCREASED THEIR FOCUS ON PROJECTS THAT PROVIDE
SCHOLARSHIP TO POOR BUT DESERVING STUDENTS, ALLOCATING BUDGETS FOR HOUSING FOR LOW-INCOME
FAMILIES SUCH AS PARTICIPATION IN PROGRAMS LIKE THE GAWAD KALINGA, ENVIRONMENTAL PROTECTION
INCLUDING TREE PLANTING, ELIMINATION OF POLLUTION, AND OTHER ENVIRONMENTAL RELATED PROGRAMS.
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