Unit 1
BUSINESS BASICS I
Business:
An organized effort to combine and
manage resources in a profitable
way, in order to produce products
and services that satisfy the needs
of customers.
“
We believe there’s an opportunity for profit
Popco is introducing an artificial intelligence
baby Chicken, Clucky the Chicken
Cluck
Cluck
Stockholder
Stakeholder
…products and services customers want
…competing to fulfill customer needs
Cluck
Cluck
Versus
Economies of Scale
The cost advantage that arises with increased
output of a product.
The greater the quantity of a good produced,
the lower the per-unit fixed cost because these
costs are shared over a larger number of goods.
Bigger is better
Specialization
A method of production where a business or
area focuses on the production of a limited
scope of products or services in order to gain
greater degrees of productive efficiency.
Division of labor to assembly line
When
Growth (Globalization)
Stakeholder
Different markets affect each other!
Supply and Demand market
“You don't want to oversupply or undersupply.
That's the danger of the beast."
Russell Hornsby, CEO Cepia, LLC.