Business Success ULSA School of business - PowerPoint Presentation

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Business Success

ULSA School of business

Professor: poochoo3xpr3ssSlide2

Corse Sylubus

You will have two tests and a final. All tests and final must be 70% or higher in order to progress.

You will only have two tries on tests, one try for your final. Each test is open web, open book, or open for questions so you should have no problem.

The information in this slide show will help you on your test if you have any issues understanding me.

Do your own work, the penalty for plagiarizing is an automatic failure followed by a course removal.

Your final will be a project in which you create a company and pitch it to me. More information will be given before the final.

Attendance is mandatory in order to pass, tardiness will be counted against you in the tests if tardy on those days.

Participation is mandatory. I don’t know what your thinking unless you tell me. Slide3

Chapter 1: What is a business and why do they work?

Businesses are organizations that provide a service or product for the consumer or customer. The only way a business can be successful is if all employees work as a team and provides a solution to a real world problem.

Rescue dogs often go into dark places to deliver water to people who are trapped until the fire department is able to rescue them. The problem is that the dog usually get injured doing this because they cant see in dark places. One group of middle school kids designed a flashlight that the dog can turn on by pulling on a tag in order for the light to turn on. Now they sell dog flashlights to fire departments all over and proven that their consideration to a problem can make them money.Slide4

If you believe that all businesses exist to make money and that that’s how you are going to make millions you will fail. Businesses exist to provide a good or service either that no one has provided, to deliver a higher quality good or to undercut other businesses. The latter option is considered big business in which they cut out the middle supplier and buy directly from the consumer at a discounted price. We will look more into these businesses later.

- The picture to the right is of the McDonald Brothers receiving their first multi-mixer from Ray Crock, the man who was behind the restaurants success. Slide5

Business is often used in a cut-throat way. Many think of a businessman and picture someone in a suit, contrast shirt, tie, and a briefcase. More often than not this is not the case. Most businesses begin small as a one location shop ran by the owner and other employees, sometimes just the owner. From there they slowly progress by selling their goods or services and make a profit. A profit is the money left when you subtract the production cost from the items sale price. If you make a product for $4.00 and sell it at $6.50, you make a profit of $2.50. In our circumstance the amounts are much higher because our economy doesn’t go that low. The profits you make form an item are your and it is wise to reinvest in into the company through expansion, this way your product can become more common and more people will buy them creating you an even larger source of income. Slide6

Chapter 2: Using economics to strengthen business.

Economics has plenty to do with business. Without economics your business would be meaningless. First we need to look at the factors of production which are labor, capitol, entrepreneurship and land. Labor is something you put yourself into in order to create using land which is a natural resource for the produce. Capitol is any good used to supply you to make the product and entrepreneurship pulls all of it together and risks it to become successful. These factors are all interdependent of each other and is important to know for this chapter.Slide7

Economics comes to play with your business as Capitalism, a partnership between the producer and consumer in which a consumer pay the producer for a good or service they provide. From that capitol the consumer gives, the producer uses it to pay for labor and capitol. From there, the labor becomes the consumer and the cycle starts all over again.

On the other hand, Communism is where the government controls your business and you produce enough so that everyone can live. This system doesn’t work, most times the products produce are poor and everyone is given a small amount of the product. Very little money is traded because the government owns all currency.

Socialism is where everything is free because it is included in taxes. If everyone pays an equal amount to produce a product then it becomes free. You may know this from the 2016 election campaign for Bernie Sanders in which college will be “free” due to everyone paying toward your education, incontinently either colleges will create a large tax raise in order to remain a higher learning center or will have to cut costs and become a continuation of public schools at the same quality range.

- Fun fact, China was Socialist before the Chinese Revolution and when Chairman Moa Zedong was in office he changed it into communists. It is now a socialist state again.Slide8

The most important part of Economics is of course Supply and Demand. This is a relationship that sets a price for your product. Lets say supply is limited, because it is more limited, it becomes a rare product which people will pay more for because of the items scarcity, Because the item is more scarce, people will pay more. Now lets say the demand for an item is outrageous, because you can only produce a certain amount in a limited time the item becomes scarce and price goes up.

The most important thing to understand is that if no one wants the item, it will sell cheap. When an item sells cheap more people will buy it, be careful when raising the price because If the item is too expensive, no one will buy it.

To test what is the best price for an item to give you the largest return businesses use the total revenue formula: TR=

PxA

where TR = total revenue, P= price of item, and A= the amount of items sold. This does not calculate profits, in order to do that subtract the production price from the TR and your profit is calculated.

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Above is a political cartoon of the death of capitalism that would ensue if either Bernie Sanders or Hillary Clinton won the 2016 presidency.