Week 1
● What is a business?
○ A business is any legal activity done for the sake of profit
○ An organized effort to provide something that people want in order to create profit
● Not all organizations are businesses
○ A family is not a business but an organization
○ A church is not a business but an organization
○ Non profit organizations also exist:
■ Universities
■ Hospitals
● Why do businesses exist?
○ Businesses exist to satisfy customer needs
○ Business ideas can come from:
■ Entrepreneurs
■ Government Legislations
● Profit
○ Profit is the difference between revenue and expenses
■ P=R-E
● Profit Motive
○ People will give up their effort and time if there is an incentive. For example,
wealth. Wealth is the motivation factor
○ The idea that people will give up their time, energy, and money to start a
business only if they can realize some benefit from doing so
■ Adam Smith, articulated the philosophy of liberalism
● People will be motivated to work hard and succeed without
government interference
■ Karl Marx, articulated the philosophy of marxism
● Profit is result of one class of people (capitalists) exploiting the
work of others (laborers)
● “Communism” is a way of organizing society. “Marxism” is its most
famous and influential strand
● Why liberalism abides with the profit motive
○ Profit is the fair compensation for risk
○ If there is no reward people aren't going to be taking risks
■ Let people take a chance, let people keep the profit
● What are the differences between stockholder satisfaction and stakeholder
satisfaction?
Stockholder satisfaction and stakeholder satisfaction are two different things. Stockholders are individuals or entities
that own shares of a company's stock, while stakeholders are individuals or groups that have an interest in or are
affected by a company's actions.
,Stockholder satisfaction refers to the degree to which a company's stockholders are happy with the company's
performance. This may include factors such as the company's financial performance, dividends, and share price.
Stakeholder satisfaction, on the other hand, refers to the degree to which a company's actions and decisions are
beneficial to its stakeholders. This may include factors such as the company's treatment of its employees, the impact
of its operations on the environment, and the quality of its products or services.
While stockholder satisfaction is primarily focused on financial performance, stakeholder satisfaction takes into
account a wider range of factors that affect the company and its stakeholders.
Week 2
● Goods Vs Services
○ Goods are physical products that can be provided
■ Food, Iphone
○ Services are non physical activities that can be provided
■ Doctors, Teachers
● Product
○ What a person believes they are getting when they enter a financial transaction
or hoping to get
● 3 Attributes of Products
○ Function
■ What is the product intended to do
○ Features
■ What are some attributes that contribute to usefulness
● Car has convertible roof
● Car has air conditioning
● Restaurant has attractive décor
● Restaurant has live music
○ Benefit
■ What are some advantages that are derived from this product
● Intangible benefits: image, reputation, status
● Tangible benefits: car makes you independent from your parents
● Value Package
○ Benefits + Features + Function = Value Package
○ The bundle of tangible and intangible functions, features and benefits that a
business offers its customers
● Classifying Products
○ Industrial
■ Purchased by businesses and used to produce other products
■ Function is a key criterion and price is very important
■ Small number of buyers
■ Buyers are knowledgeable
○ Consumer
, ■ Purchased by individuals for their own use
■ Name recognition is important
■ Branding is important
■ Packaging is important
● Convenience
○ Inexpensive, purchased frequently
○ Consumed quickly
○ Purchased without effort, time
○ Deodorants, razors, snacks
● Shopping
○ More expensive, purchased less often
○ Cars, laptops
● Specialty
○ Consumers expect to buy these products once and
remember the purchase
○ Lots of time and effort
○ Good: Wedding Gown, Service: Wedding reception
● Product Life Cycle Model
○ they begin small and weak
■ Sales are low
■ Price is high
■ Profits negative
■ Competitors - few
○ they grow quickly
■ Sales rising
■ Customers rising
○ they mature
■ Everyone has one or two
○ and decline
■ Gets outdated, something new comes out usually
○ Extending the life cycle
■ Release a new variation of the product for example diet coke
● What is a business?
○ A business is any legal activity done for the sake of profit
○ An organized effort to provide something that people want in order to create profit
● Not all organizations are businesses
○ A family is not a business but an organization
○ A church is not a business but an organization
○ Non profit organizations also exist:
■ Universities
■ Hospitals
● Why do businesses exist?
○ Businesses exist to satisfy customer needs
○ Business ideas can come from:
■ Entrepreneurs
■ Government Legislations
● Profit
○ Profit is the difference between revenue and expenses
■ P=R-E
● Profit Motive
○ People will give up their effort and time if there is an incentive. For example,
wealth. Wealth is the motivation factor
○ The idea that people will give up their time, energy, and money to start a
business only if they can realize some benefit from doing so
■ Adam Smith, articulated the philosophy of liberalism
● People will be motivated to work hard and succeed without
government interference
■ Karl Marx, articulated the philosophy of marxism
● Profit is result of one class of people (capitalists) exploiting the
work of others (laborers)
● “Communism” is a way of organizing society. “Marxism” is its most
famous and influential strand
● Why liberalism abides with the profit motive
○ Profit is the fair compensation for risk
○ If there is no reward people aren't going to be taking risks
■ Let people take a chance, let people keep the profit
● What are the differences between stockholder satisfaction and stakeholder
satisfaction?
Stockholder satisfaction and stakeholder satisfaction are two different things. Stockholders are individuals or entities
that own shares of a company's stock, while stakeholders are individuals or groups that have an interest in or are
affected by a company's actions.
,Stockholder satisfaction refers to the degree to which a company's stockholders are happy with the company's
performance. This may include factors such as the company's financial performance, dividends, and share price.
Stakeholder satisfaction, on the other hand, refers to the degree to which a company's actions and decisions are
beneficial to its stakeholders. This may include factors such as the company's treatment of its employees, the impact
of its operations on the environment, and the quality of its products or services.
While stockholder satisfaction is primarily focused on financial performance, stakeholder satisfaction takes into
account a wider range of factors that affect the company and its stakeholders.
Week 2
● Goods Vs Services
○ Goods are physical products that can be provided
■ Food, Iphone
○ Services are non physical activities that can be provided
■ Doctors, Teachers
● Product
○ What a person believes they are getting when they enter a financial transaction
or hoping to get
● 3 Attributes of Products
○ Function
■ What is the product intended to do
○ Features
■ What are some attributes that contribute to usefulness
● Car has convertible roof
● Car has air conditioning
● Restaurant has attractive décor
● Restaurant has live music
○ Benefit
■ What are some advantages that are derived from this product
● Intangible benefits: image, reputation, status
● Tangible benefits: car makes you independent from your parents
● Value Package
○ Benefits + Features + Function = Value Package
○ The bundle of tangible and intangible functions, features and benefits that a
business offers its customers
● Classifying Products
○ Industrial
■ Purchased by businesses and used to produce other products
■ Function is a key criterion and price is very important
■ Small number of buyers
■ Buyers are knowledgeable
○ Consumer
, ■ Purchased by individuals for their own use
■ Name recognition is important
■ Branding is important
■ Packaging is important
● Convenience
○ Inexpensive, purchased frequently
○ Consumed quickly
○ Purchased without effort, time
○ Deodorants, razors, snacks
● Shopping
○ More expensive, purchased less often
○ Cars, laptops
● Specialty
○ Consumers expect to buy these products once and
remember the purchase
○ Lots of time and effort
○ Good: Wedding Gown, Service: Wedding reception
● Product Life Cycle Model
○ they begin small and weak
■ Sales are low
■ Price is high
■ Profits negative
■ Competitors - few
○ they grow quickly
■ Sales rising
■ Customers rising
○ they mature
■ Everyone has one or two
○ and decline
■ Gets outdated, something new comes out usually
○ Extending the life cycle
■ Release a new variation of the product for example diet coke
