What's it: Wants are hopes to have or fulfill something. If we want something, we expect to be able to buy it and have it. It's a felt need shaped by our knowledge, culture, personality, marketing, and preferences. Unlike needs,
Business
Needs: Definition, Example, Type
What's it: Needs means requiring something because it is essential. For example, we need food, water, and shelter to sustain our survival. Without food, for example, we can die. In the introduction to economics, we will find
Business Process: Definition, Importance, and Management
What's it: A business process refers to a series of interrelated actions, activities, or work to achieve a business goal. They shape the business operation and, therefore, must be done. Companies usually group internal processes into
Manufacturing Process: Definition, Examples, and Types
What’s it: The manufacturing process is the work steps and actions involved in converting inputs into outputs. Inputs can be raw materials, semi-finished goods, or components. Meanwhile, the output can be finished or semi-finished
Why is adding value important for a business?
Adding value is important for businesses because, with it, they can make a profit. Then, when it is better than their competitors and maintains it over time, they can make more profit. Businesses satisfy the needs and wants of
How Businesses Build Competitive Strategy
Building a competitive strategy is about how companies outperform their competitors in generating profits by satisfying the same consumer needs and wants. There are many businesses around us. Some target the same market. They
How does a business work?
The way a business works is basically adding value. They do this by processing inputs into higher-value outputs. Next, assume the business produces goods, and you are the owner. Starting a business At first, you decide what to
Value Added Formula and How To Calculate It
Calculating added value is straightforward. The value-added formula requires only simple linear mathematical operations. We only need two data: price and cost. Well, in this article, we discussed the value-added formula at the beginning.
The Role of Business in Society and the Economy
Business plays a vital role in our lives. First, they create goods and services to satisfy our needs and wants. Then, they also recruit households as labor and provide them with compensation, such as wages, salaries, and benefits.
What Are Business Resources Examples
In producing goods or providing services, businesses need resources. We also call it input. Economists call them factors of production. They consist of four components: LandLaborCapitalEntrepreneurship Land Businesses can use the
Human Resources in a Business
What's it: Human resources is a term used to refer to people who work for companies which deliver economic benefits for the companies they work for. They range from staff to top management. They are managed under the human resources
How Low-Cost Inputs Affect A Company’s Competitiveness
Low-cost inputs are essential for supporting competitive advantage, especially if the firm adopts a cost leadership strategy. What's it: A low-cost input refers to a resource used by the company to produce output and has a lower
Value Added: Meaning, Formula, Importance, Way to Create
What's it: Value added is the difference between the input costs to make a product and its selling price. This concept is important in business and economics. For example, in business and management, we can come across this concept
Value Creation: Definition, Shareholder Value, Customer Value
What's it: Value creation is about producing something or making something more valuable. We can use it to refer to many meanings. For example, creating value could be by adding value. Businesses create value by turning
Examples on How Businesses Add Value to Products
What's it: Adding value means widening the difference between the input price and the selling price of the output. Business activities are basically to add value, namely by processing inputs into higher value outputs. For example, a
What is the Difference Between Needs and Wants?
The difference between needs and wants lies primarily in how essential they are to our survival. We must meet the needs to support daily activities. On the other hand, we don't always have to fulfill wants because they are less