Business and Goods & Services Overview

Goods & Services

• Goods are tangible products, things you can touch and see.
• Services are intangible products, like car insurance or the feeling of a good vacation.

Business

• A business is any activity that seeks to provide goods and services while operating at a profit.
• An entrepreneur is a person who risks time and money to start and manage a business.
• Revenue is the amount of money received for goods or services during a period of time.
• Profit is the amount of money a business earns after subtracting salaries and other expenses.
• Risk is the chance an entrepreneur takes of losing time and money on a business that may not be profitable.
• Standard of living refers to the amount of goods and services people can buy with the money they have.
• Quality of life refers to the general well-being of a society.

Stakeholders

• Stakeholders are those who stand to lose or gain.
• Example of stakeholders for Tim Hortons: customers, employees, franchise owners, suppliers, investors, community members, government, and competitors.

Offshoring & Outsourcing

• Offshoring refers to sourcing part of purchased inputs outside of the country or contracting with other companies to do some or all of a firm's functions, such as production or accounting, outside of the country.
• Outsourcing means contracting with other companies to do some or all of a firm's functions, such as production or accounting, regardless of location.
• Insourcing is the situation where a company has functions that could be outsourced but chooses to keep them in-house.
• Nearshoring is the process of outsourcing work to a company or individual located near your own.

Non-Profit Organizations

• A non-profit organization's goals do not include making a personal profit for its owners or organizers.

Entrepreneurship vs. Working for Others

• Working for others provides the benefit of having someone else assume the entrepreneurial risk and provide benefits.
• Canada's wealthiest citizens often achieved their wealth by being entrepreneurs.

Five Factors of Production

• Land (natural resources)
• Labour (workers)
• Capital (physical assets not money)
• Entrepreneurship
• Knowledge

Business Environment

• Legal environment
• Economic environment
• Technological environment
• Competitive environment
• Social environment

Legal Environment

• Regulations are laws and rules made by politicians that affect how businesses can operate.
• Governments can help lessen the risks associated with starting and running a business through laws.

Economic Environment

• The Economic environment considers income, expenditures, and resources that affect the cost of running a business.
• Businesses review major economic indicators, such as consumer spending, employment levels, and productivity.
• Movements in a country's currency relative to other currencies (foreign exchange) also affect the economic environment.
• Entrepreneurship is another aspect of the economic environment.

Technological Environment

• Technology refers to inventions or innovations from applied science or engineering research.
• Productivity is the amount of output generated given the amount of input.

E-Commerce

• B2C (Business-to-Consumer) is the regular business that companies do online with individual customers.
• B2B (Business-to-Business) is business doing business with other businesses, like suppliers of materials to a manufacturer.
• B2G (Business-to-Government) is the business that companies do with government agencies and departments to supply goods and services.
• G2C (Government-to-Citizen) refers to the business that government does online with people, such as renewing licenses or applying for permits.
• B2B2C describes business relationships in which two companies partner to offer services to consumers.
• E-business refers to a wide range of business activities on the web, from simple posting of product photos to B2B marketplaces.
• E-commerce refers to the websites that allow transactions so that customers can buy products online.

Social Media Marketing

• Social Media Marketing is the use of social media platforms such as Facebook, Twitter, Instagram, TikTok, LinkedIn, Pinterest, and YouTube, to interact with customers.
• Social Media Marketing benefits are engaging with customers and increasing traffic to websites.

Competitive Environment

• The degree to which a business needs to consider the competitive environment depends on the amount of competition it faces.
• Empowerment is a competitive advantage.

Social Environment

• Demography is the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.
• Example: The Aging Population - More people are living longer due to better technology/medical knowledge, better health habits, nutrition, exercise, and reduction in the number of smokers.
• Example: Increased Diversity - Canada has a strong multicultural population.
• Migration - Is migration a blessing or a problem or both?

Global Business Environment

• As businesses expand to serve global markets, new jobs are created in both manufacturing and service industries.
• Global trade also means global competition.
• Rapid changes create a need for continuous learning.

BRICS

• BRICS stands for Brazil, Russia, India, China, and South Africa.
• The BRICS countries are a group of emerging economies with large and rapidly growing populations that account for a significant share of the world's GDP.
• Advantages: huge market potential, access to resources, political influence.
• Disadvantages: economic volatility, infrastructure challenges, political instability.

Ecological Environment

• Climate change is the movement of the temperature of the planet up or down over time.
• The issue now is global warming.

Evolution of Business

• Agricultural - The modern farming industry has become so efficient that the number of farms has dropped.
• Goods - Includes the manufacturing, construction, utilities, agriculture, forestry, fishing, mining, quarrying, and the oil and gas industries.
• Manufacturing - Includes food, beverage, clothing, chemical, machinery, wood, and petroleum and coal products manufacturing.
• Service Industries - Services are intangible products (i.e., products that cannot be held in your hand), such as education, healthcare, insurance, recreation, and travel and tourism.

Chapter 1 Summary

• Business profit/risk assumption
• Stakeholder roles
• Role of entrepreneurship in wealth creation
• Elements of business environment
• Rise of the service sector

This quiz covers key concepts related to goods and services, businesses, and stakeholders. Understand the differences between tangible products and intangible services, as well as the roles of entrepreneurs and the financial aspects of running a business. Explore the various stakeholders involved and their impact on a business's success.