Intro to Business Flashcards
What is the Definition of a business?
a business can be defined as the combined efforts of individuals in order to produce and sell, for a profit, the products that satisfy the needs and wants of the consumers.
What are the Transformed Resources (MIC)?
- Materials
- Information
- Customers
What are the Transforming Resources (HF)?
- Human Resources
- Facilities - Factory, Office, Machinery
What does USP stand for?
Unique Selling Point
What is the main function of a business?
A business’ primary goal is to make a profit by satisfying the wants and needs of consumers.
What is production
Production is the process and activities undertaken by the business that combine the resources to create products that satisfy customers wants and needs.
what are inputs?
the resources used in the production process.
Owned by the business or purchased by suppliers
what are goods
Goods (tangible) are items that can be seen or touched
Requires production with inputs, machinery and inventory management.
What is a product
a product is a good or service that can be bought or sold
What is a service
Services (Intangible) are things done for you by others.
higher involvement in provision of service
What are Transformed resources?
Transformed resources are those inputs that are changed or converted in the operations process -> they are transformed by the operations process
What are Transforming resources?
Transforming resources are those inputs that carry out the transformation process -> they enable the change and value adding to occur
What is the Transformation process?
Transformation is the conversion of inputs into outputs
What are Outputs?
The final finished good or service
Or
The semi-finished good to be used in another production service
Outputs are the end result of business efforts
What is Value adding?
Value adding is the difference between price of the finished product and the cost of the inputs involved in making it
- Each step of production adds value to the final product
How do businesses produce goods and services?
Inputs > Transformation > Outputs
Inputs (Transformed and Transforming) > Transformation (Value Adding - Assembly) > Outputs (Product - Good or Service)
