slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
WHAT IS A BUSINESS? A business is the production and sale of goods / services to consumers PowerPoint Presentation
Download Presentation
WHAT IS A BUSINESS? A business is the production and sale of goods / services to consumers

Loading in 2 Seconds...

play fullscreen
1 / 33

WHAT IS A BUSINESS? A business is the production and sale of goods / services to consumers - PowerPoint PPT Presentation


  • 87 Views
  • Uploaded on

WHAT IS A BUSINESS? A business is the production and sale of goods / services to consumers. They can be small (ex. a hot dog vendor on the street corner) or very large (a multinational company such as Nike). Markets. Doesn’t have to be a physical location.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'WHAT IS A BUSINESS? A business is the production and sale of goods / services to consumers' - andren


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide6

WHATISABUSINESS?

Abusinessistheproductionandsaleof

goods/servicestoconsumers

Theycanbesmall(ex.ahotdogvendor

onthestreetcorner)orverylarge(a

multinationalcompanysuchasNike)

slide7

Markets

Doesn’thavetobeaphysicallocation

Theyexistonlywhenconsumers/producerscome

togethertoexchangegoods/servicesformoney

Soamarketcouldbeastorewhereyoubuyjeans

ore-bay

slide8

Marketscontd.

2majortypesofmarkets

1)consumermarket“B2C”

•Madeupofallthethingsweuseforpersonal

consumption

2)businesstobusinessmarket“B2B”

-madeupofallthecompanieswhichsellthingstoother

businesses

slide9

Interdependence

Consumersandproducersdependoneach

otherequally

Consumersneedproducerstomanufacture

andsupplygoodsandservices

Producersneedconsumerstobuythegoods

theymanufactureandoffer

slide10

Interdependence

Inordertoremainsuccessfulcompanies

muststayintouchwithconsumerscurrent

wants,demandsandneeds

•Examples:Nestle’snewflavoredwatersand

McDonald’shealthiermenuchoices

Companiesalsorelyoneachotherforraw

materials,equipmentandservices

slide11

AProduceris…

Someonethatmakesgoodsorservices

availabletoconsumers

Allbusinessesproducesomething

slide13

Haveyoueverwondered

whatdetermines

theprices

ofthethingsyoubuy?

slide15

Demand

Representstheconsumersideofthemarket

Howmuchofparticulargood/servicedo

consumerswant

3thingsdeterminethelevelofdemand

•Desire,Abilitytopay,Willingnesstopay

slide16

Supply

Representsthemanufacturersideofthe

market

Howmuchofaparticulargood/service

themanufacturercan(oriswillingto)

provide

slide17

Thebattlebetweensupply

anddemand

demand

supply

slide18

DemandfortootsiepopsinRustonia

100

Point

A

Price

20

Market

demand

700

80

60

Price

40

20

A

Demand

0

0

100

200

300400

Quantity

500

600

700

800

slide19

DemandfortootsiepopsinRustonia

100

Point

A

B

Price

20

40

Market

demand

700

80

500

60

40

Price

B

A

Demand

20

0

0

100

200

300400

Quantity

500

600

700

800

slide20

DemandfortootsiepopsinRustonia

100

Point

A

B

C

Price

20

40

60

Market

demand

700

500

80

350

C

60

Price

B

40

A

Demand

20

0

0

100

200

300400

Quantity

500

600

700

800

slide21

DemandfortootsiepopsinRustonia

100

Point

Price

Market

demand

700

500

350

200

D

A

B

C

D

20

40

60

80

80

60

C

Price

B

40

A

Demand

20

0

0

100

200

300400

Quantity

500

600

700

800

slide22

Sowhatdowenoticeaboutthe

DemandCURVE

Asthepriceofagooddecreasesdemand

forthegoodwillincrease

slide23

SupplyfortootsiepopsinRustonia

Supply

100

80

60

Price

40

Point

A

Price

20

Supply

100

A

20

0

0

100

200

300

500

600

700

800

400

Quantity

slide24

SupplyfortootsiepopsinRustonia

Supply

100

80

60

Price

40

B

Point

A

Price

20

Supply

100

B

40

A

200

20

0

0

100

200

300

500

600

700

800

400

Quantity

slide25

SupplyfortootsiepopsinRustonia

Supply

C

100

80

60

Price

40

B

Point

A

Price

20

Supply

100

A

B

C

40

60

200

350

20

0

0

100

200

300

500

600

700

800

400

Quantity

slide26

SupplyfortootsiepopsinRustonia

Supply

D

C

100

80

60

Price

40

B

Point

A

Price

20

Supply

100

A

B

C

D

40

60

80

200

350

530

20

0

0

100

200

300

500

600

700

800

400

Quantity

slide27

SoWhatdowenoticeabout

THESUPPLYCURVE

•Asthepriceofagoodincreasessupply

ofthegoodwillincrease

slide28

Buthowdoesallofthis

determinethepriceof

goods?

slide29

It’ssomethingcalled

Equilibrium

Themarketissaidtobeinequilibrium

whensupplyequalsdemand

slide30

Combiningthesupplyanddemandcurvefortootsie

popsinRustonia

Supply

100

80

Marketisinequilibrium

Demand=Supply

Demand

60

40

20

0

Price

0

100

200

300

400

500

600

700

800

Quantity

slide31

Scenarios

Whathappenswhendemandexceedssupply?

WhentheNintendoWiiwas

introduced…demandwasveryhigh

butsupplywaslow

Result??pricesskyrocketed!!!

peoplewereabletochargehundredsofdollars

morefortheWiithantheyhadpurchaseditfor

slide32

Scenarios

Whathappenswhensupplyexceedsdemand?

WhenPS3wasintroduced,demandfor

PlayStation2dwindledbecausepeople

wouldratherbuythelatestversion;

howeversupplywashigh.

Result?thepriceofPlayStation2

droppeddramaticallyasretailsjustwantedto

getridoftheproduct.

slide33

OtherScenarios

Consider…

ThepriceofHallowe’encandyon

October25vs.itspriceonNov1

ThepriceofChristmasdecorations

onDecember1versusDecember26

Whycan’tIfindaBBQatCanadianTireinOctober?

Whycan’tIfindasnowblowerinMay?