BBI 2O

1. BBI 2O Introduction to Business

2. BELL WORK • Skim through chapter 1, write down any bolded terms you are not familiar with. (5 minutes) • Read “Pita Pit”, page 5. Answer questions #1, #2 (5 minutes) BBI 2O Unit 1

3. UNIT 1: Business Fundamentals Chapter 1: Economic Basics

4. What is a Business? “I feel that luck is preparation meeting opportunity” ~ Oprah Winfrey

5. What is a Business? • There are many ways to classify a business. BBI 2O Unit 1

6. What is a Business? • A For-profit Business “an organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purposes of making a profit” BBI 2O Unit 1

7. What is a Business? • A For-profit Business Profit: money left after all expenses have been paid Expenses: money spent on running the business (wages, supplies) BBI 2O Unit 1

8. What is a Business? • A For-profit Business Costs: money spent for the production of the good or service • Businesses try to keep profits up by keeping costs and expenses down. BBI 2O Unit 1

9. What is a Business? • A For-profit Business Profit = Revenue – Expenses If profit is negative, it is called a loss. BBI 2O Unit 1

10. What is a Business? • A For-profit Business A business which makes profit may use the money to: • expand/grow operations • improve products/services • give to owner/shareholders BBI 2O Unit 1

11. What is a Business? • Non-profit and Not-for-profit Businesses NP: does not look to make profit, but raises funds for a specific goal (charities, charitable organizations) Examples? BBI 2O Unit 1

12. What is a Business? • Non-profit and Not-for-profit Businesses NFP: does not seek to make profit, extra monies used to improve services Examples? BBI 2O Unit 1

13. What is a Business? • Non-profit and Not-for-profit Businesses Co-operative: A group of people who come together to meet a set of goals in a democratically controlled business. BBI 2O Unit 1

14. What is a Business? • Size of Business Small or medium sized business: less than 500 people BBI 2O Unit 1

15. What is a Business? • Forms of Business Ownership • will be covered in chapter 2 BBI 2O Unit 1

16. What is a Business? • Goods or Services? Businesses either sell goods (physical things you take home) or provide services (do something) in exchange for money. Some do both. BBI 2O Unit 1

17. What is a Business? • Goods or Services? • Businesses that sell goods • Businesses that provide services • Businesses that do both. BBI 2O Unit 1

18. What is a Business? • Distribution How are goods & services delivered? • Bricks and mortar business, telemarketing, catalogue, virtual store (internet) Examples? BBI 2O Unit 1

19. What is a Business? • Role in the Community What does the business do for the community? BBI 2O Unit 1

20. What is a Business? • Jobs What type of jobs does it provide? BBI 2O Unit 1

21. What is a Business? • HOMEWORK • read pages 6-9 • questions: page 10 #3, 4 • read pages 10-14 BBI 2O Unit 1

22. The Role of the Consumer

23. Role of the Consumer • Producers manufacture goods for consumers. Companies that attract more consumers can make more sales and more profit. BBI 2O Unit 1

24. Role of the Consumer • The interaction between producer and consumer creates the marketplace. PRODUCER CONSUMER MARKETPLACE BBI 2O Unit 1

25. Role of the Consumer • Years ago, business dictated what was produced, and in what quantities. • Eventually, consumers started to tell manufacturers their needs and wants, creating competition. BBI 2O Unit 1

26. Role of Consumer Name some new trends and related products on the market. BBI 2O Unit 1

27. Role of the Consumer Consider High-Definition TV trends: RIM (Blackberry) vs. Apple (iPhone) Who will decide which technology will win? BBI 2O Unit 1

28. Role of the Consumer • Consumers also decide when a product will no longer be produced. When no one wants a product anymore, it becomes obsolete. • What are some things you know of that have become obsolete? BBI 2O Unit 1

29. Role of the Consumer • Consumers also influence price. Companies used to have pricing power (could charge what they want), but with competition consumers can shop around for the best deal. BBI 2O Unit 1

30. Role of the Consumer • Consumers also have consumer purchasing power—as customers they dictate how much they are willing to pay, but also the level of service. BBI 2O Unit 1

31. Role of the Consumer • HOMEWORK • Questions: page 14, q #5, 6, 7 • Read pages 15-19 BBI 2O Unit 1

32. Starting a Business

33. Starting a Business • People who start their own businesses are called entrepreneurs. BBI 2O Unit 1

34. Starting a Business • Entrepreneurs need: • self-confidence • a flair for innovation • the ability to work alone • an aptitude for managing others BBI 2O Unit 1

35. Starting a Business • Consumer Needs and Wants Sometimes a business is started to satisfy consumer needs. Needs are things that are necessary for survival. You need food, clothing. BBI 2O Unit 1

36. Starting a Business • Consumer Needs and Wants Wants are things that are not necessary for survival, but add comfort and pleasure to our lives. You want a burger, A&F shirt. BBI 2O Unit 1

37. Starting a Business • Attracting Consumer Interest It is important to understand how consumers make buying decisions. This will help decide what to make, how to market and distribute the product. BBI 2O Unit 1

38. Starting a Business • Attracting Consumer Interest Businesses need to listen to what the consumer wants. The challenge is then to get those customers to buy your product. BBI 2O Unit 1

39. Starting a Business • Attracting Consumer Interest • BRAINSTORM • What can companies do to attract more customers? BBI 2O Unit 1

40. Starting a Business • Attracting Consumer Interest • Sample answers: • create a new product • modify an existing product • more heavily promote a product • offer purchase incentives (coupons) • convince consumers they need (want) the product • develop different uses for product • offer free samples • in-store demonstrations BBI 2O Unit 1

41. Starting a Business • Attracting Consumer Interest The task is to come up with a product the consumer needs or wants, at a price they’re willing to pay, in a place that is convenient, and promote it so they know about it. BBI 2O Unit 1

42. Starting a Business • HOMEWORK • complete worksheets C & E for tomorrow • start working on Entrepreneur assignment • read pages 20-22 BBI 2O Unit 1

43. BELL WORK • “Being in business means making decisions all the time, every day.” With a partner, pick a business. Write down five decisions that a business needs to make in an average day. (5 minutes) WRITE DOWN DON’T WRITE BBI 2O Unit 1

44. Homework Check • Hand in worksheet C & E • Reminder: “Do You Have What it Takes to Be an Entrepreneur” activity due tomorrow in class BBI 2O Unit 1

45. Making Good Business Decisions

46. Making Good Bus. Decisions • The five-step decision-making model can be used to help in any business situation. • (as we go through this note, refer to example in textbook, pages 20-22) BBI 2O Unit 1

47. Consider this: • Cambridge Stick Inc. makes hockey and ringette sticks. Cambridge Stick is a major sponsor of the ringette national championships which are being held in Cambridge and demand for their sticks has sky-rocketed - so much that it cannot keep up with demand. BBI 2O Unit 1

48. Making Good Bus. Decisions • Determine what decision has to be made. What is the problem? What issue needs to be resolved? BBI 2O Unit 1

49. Making Good Bus. Decisions • Identify the alternatives. Brainstorm as many solutions to the problem as possible. BBI 2O Unit 1

50. Making Good Bus. Decisions • Evaluate the advantages and disadvantages of each. What are the pros and cons of each option? BBI 2O Unit 1