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The Key Concepts Of Business - Coggle Diagram
The Key Concepts Of Business
What is a business?
A business can be from an entrepreneur or a group. It gives people goods and services.
(Ex. Restaurants, bookstores, salons)
Goods
: Physical products that are visible and can be touched.
(Ex. Laptop, coffee, markers)
Why set up a business?
Make a profit
Be your own boss
Provide a service
(Ex. hairdresser)
Fill a gap in the market
(Ex. provide services in a certain area that isn't there)
Develop a hobby
You have the required skills
Don't have a job or don't like your job
Role of business in society
For your needs
(Ex. shelter, clothes, food, warmth)
For your wants
(Ex. fashion, technology, luxuries)
Goods and services
(Ex. laptop, food, transport, cinemas)
Factors of production:
Resources needed to build the economy and business.
(Ex. Land, Labor, Capital, Enterprise)
Specialization
Specialization:
Focusing on specific skill or talent for the business to grow.
(Ex. Starbucks, KFC)
Micro Economic Specialization
When a person decides to use their talent or skill to produce a specific good and grow their business, focusing on that one skill and product.
(Ex. person is good at science, follows a path that requires mainly science)
Macro Economic Specialization
When markets or businesses specialize in specific services or products.
(Ex. Area can produce a product at a lower cost than the other product, they will focus more on the production of the good that costs less)