Business

Business can be defined as all the activities of an individual or group of individuals involved in producing goods or services and distributing them to consumers that is to whoever will use them. In other words, business involves production, marketing and consumption.

 

The process of creating or improving goods or services that will satisfy human wants is called production.  Production creates useful products and services for business firms and individual consumers. The Pease farm for example, produces milk and diary products and grows vegetables.

 

Production is so important that we measure the health of our entire economy by the amount of goods and services produced each year. The more goods and services the nation produces in proportion to population, the higher its standard of living, unless it exports most of those goods and services. America’s high production rate can be traced to its natural resources, diversified population and technical expertise.

 

The business of America is business. This is said so because of its natural resources. Water, fertile soil, useful minerals, fuels such as oil and coal and favorable climate are all natural resources. Natural resources are vital to the well being of a country. The Untied States of America is fortunate to have abundant natural resources.

 

The United States is the leader in business and production of manufactures goods as well as one of the leading agricultural nations. An important factor in success of business and production is the use of machines that make possible the efficient production of many goods.

 

The process of using goods and services is called consumption and anyone who uses goods and services is a consumer. Individuals, governments, institutions and business firms are all consumers. In the Unites States economy what consumers want and buy determines to a large extent what businesses will produce.

A business will succeed if it can produce what consumers want. A business will fall if it does not produce what consumers want. It is therefore important for businesses to know which goods and services will be in demand. A successful marketer learns which goods and services will satisfy customer needs and makes them available.

 

To market large quantities of goods effectively, business people must consider both the product and the customer. A business that applies the marketing concept centers all company planning and activity on customer needs. Instead of trying to sell to everybody, the firm selects the most likely customers for its products. Pease farm produce, for example, could sell to local residents but chooses rather to concentrate on city customers traveling to weekend homes in the country.