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Chapter 1
A Look at Wants and Needs
pp. 4-17
continued
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Introduction to Business, A Look at Wants and Needs
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Introduction to Business, A Look at Wants and Needs
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continued
Introduction to Business, A Look at Wants and Needs
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Businesses satisfy people’s basic
needs all the way to their lavish
wants.
Competition and profit motivate
these businesses to continually
strive for your business.
Introduction to Business, A Look at Wants and Needs
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wants
needs
goods
services
resource
business
profit
Introduction to Business, A Look at Wants and Needs
continued
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Wants are the things you wish you
could have. Each person has wants.
competition
consumer
A group of people may also share the
same wants. Although these wants are
shared, they are considered private
wants.
Introduction to Business, A Look at Wants and Needs
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Some wants are widely shared by
many people.
These wants are no longer considered
private but become public wants, such
as highways, drinking water, and
education.
Introduction to Business, A Look at Wants and Needs
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Necessary wants are needs.
Food, shelter, and clothing are basic
needs.
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Introduction to Business, A Look at Wants and Needs
For the most part local, state, and
federal governments satisfy public
wants.
Introduction to Business, A Look at Wants and Needs
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Goods can be physically weighed or
measured.
Goods satisfy your wants and needs
for material things that you can see or
touch.
Introduction to Business, A Look at Wants and Needs
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Services are tasks that people or
machines perform.
Services also satisfy some of your
wants for things you can’t see or touch.
Entertainment TV won’t save your life. Political scandals
don’t cure a chronic cough. Sixty-two percent of Americans
are tired of hyped newscasts. Instead, they want the media
to spend more attention to medical research issues.
Does the media sway the public’s wants and needs?
Introduction to Business, A Look at Wants and Needs
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Most people have unlimited wants for
goods and services.
The more money you make, the more
goods or services you want.
Introduction to Business, A Look at Wants and Needs
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The problem of unlimited wants and
limited resources affects individuals,
companies, and nations.
Introduction to Business, A Look at Wants and Needs
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Introduction to Business, A Look at Wants and Needs
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A resource is anything that people
can use to make or obtain what they
need or want.
Examples of resources include fuel,
timber, labor, and money.
Introduction to Business, A Look at Wants and Needs
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Resources limit the number of wants
people can satisfy.
Businesses and government are
influenced by the same problem.
Introduction to Business, A Look at Wants and Needs
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People make the most of their
resources by making the right choices
about what to buy.
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Introduction to Business, A Look at Wants and Needs
The decision-making process is a
step-by-step method to carefully
consider alternatives that result in
better choices.
Introduction to Business, A Look at Wants and Needs
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Graphic Organizer
The decision-making process has five
essential steps:
1.  Identify the problem.
2.  List the alternatives.
3.  Determine the pros and cons.
4.  Make the best decision.
5.  Evaluate your decision.
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Introduction to Business, A Look at Wants and Needs
Fast Review
Anything people can
use to make or obtain
what they want or need
Things you wish you
could have
Necessary wants
Introduction to Business, A Look at Wants and Needs
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Fast Review
1. Define wants, needs, goods,
services, and resources.
3. List the steps in the decisionmaking process.
2. What is the difference between
public wants and private wants?
continued
Introduction to Business, A Look at Wants and Needs
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Introduction to Business, A Look at Wants and Needs
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Business is any activity that seeks
profit by providing goods or services to
others.
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Example: Sam Walton, Wal-Mart
  1962 - opened first store in Arkansas
  Today - sells $200 billion worth of goods and services
To become a successful company, it
had to figure out that its customers
wanted low prices and genuine
customer service.
Introduction to Business, A Look at Wants and Needs
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A business must organize the people
and equipment to provide the product.
People within the organization manage
the company’s resources to produce
the product.
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Businesses provide you with
necessities.
Businesses also provide people with
the opportunity to become wealthy.
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What happens before your favorite
product is available to buy?
A business generally goes through a
sequence of activities. (p. 9-10)
Introduction to Business, A Look at Wants and Needs
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The company markets the product or
service by deciding where to sell it and
how to advertise it.
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Profit is the amount of money left over
after a business has paid for the cost
of producing its goods and services.
A business is profitable when sales are
high and costs are kept low.
Profit is the motivation for taking the
risk to start a business.
Introduction to Business, A Look at Wants and Needs
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Companies thrive on competition, or
the contest between businesses to win
customers.
Example - Cell phones, Hybrid cars
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Introduction to Business, A Look at Wants and Needs
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According to 81 percent of those surveyed by a team of
researchers from Washington State University, learning is
a lifelong pursuit for a successful career. More adults are
enrolling in continuing education courses.
How are colleges going to meet the increased demand
for continuing education courses?
Introduction to Business, A Look at Wants and Needs
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Businesses make many decisions that
impact you.
A consumer is a person who selects,
purchases, uses, or disposes of goods
or services.
However, you also affect business.
Business is aware of your changing
needs and wants.
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Introduction to Business, A Look at Wants and Needs
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Businesses affect you when they
discontinue products. The decision to
stop manufacturing products is often
because there is a decreasing
demand.
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In order to make products and provide
services, businesses hire people to
work.
In order to produce a product, the
business decides how it will be
produced.
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Example: JanSport - Backpack
As a consumer you affect business by
buying certain products or services.
Business can also affect you by
offering certain products or services.
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When a company is slow to respond to
customers’ complaints and doesn’t
communicate very well, then
customers usually find another
company’s product to buy.
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In business today, workers have more
input about how business is done.
When you’re an employee, quality of
work, decision-making skills, and input
to problems help a business flourish.
Introduction to Business, A Look at Wants and Needs
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In groups of three, decide on a
product or service to make your lives
easier and better. Draw a blueprint
of the product or a diagram
representing the service. Also,
provide a written description of the
product or service.
Introduction to Business, A Look at Wants and Needs
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Fast Review
Fast Review
1. Explain the functions of business.
3. How does business affect you as a
consumer and as a wage earner?
2. List the business activities that
happen behind every product or
service.
continued
Introduction to Business, A Look at Wants and Needs
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Introduction to Business, A Look at Wants and Needs
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End of
Chapter 1
A Look at Wants and Needs
pp. 4-17
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