Date post: | 08-Jan-2018 |
Category: |
Documents |
Upload: | alexandra-oliver |
View: | 217 times |
Download: | 0 times |
Bell Ringer Activity
Identify a local business for each of the following categories:– Producers - Intermediaries– Processors - Retailers– Manufacturers - Service– Wholesalers
Read to LearnDifferentiate the six types of businesses.
Describe the five functions of business.
Discuss how the five functions of business relate to each other.
The Main IdeaThere are many different types of businesses. The five functions of business are involved in every one.
Graphic Organizer
Types of Businesses
Functions ofBusinesses
• Producers• Processors• Manufactures• Intermediaries and
Wholesalers• Retailers and Service
Businesses
• Production and Procurement
• Marketing• Management• Finance and
Accounting
Producers
producera business that gathers raw goods
A producer may be found in industries such as agriculture, mining, fishing, or forestry.
Processor
processora business that changes raw materials into more finished products
A processor may, for example, turn crude oil into gasoline.
Manufacturers
manufacturera business that makes finished products out of processed goods
Cars, CDs, and computers are examples of goods that are made by a manufacturer.
Intermediaries and Wholesalers
intermediarya business that moves goods from one business to another
An intermediary buys goods, stores them, and then resells them.
Intermediaries and Wholesalers
wholesalera business that moves good from one business to another
A wholesaler of clothing may buy thousands of jackets from several manufacturers, divide the large quantities into smaller ones, and sell them to retailers.
Retailers and Service Businesses
retailera business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goods
A record store is an example of a retailer.
Retailers and Service Businesses
Service businesses perform tasks rather than provide goods.
Service businesses employ about three-quarters of the workforce and are rapidly increasing in numbers.
Functions of Business
The five main functions of business are:Production and procurementMarketingManagementFinanceAccounting
Production and Procurement
productionthe process of creating, expanding, manufacturing, or improving goods and services
Production and procurement are closely related functions of business.
procurementthe buying and reselling of goods and services that have already been produced
Marketing
marketingthe process of planning, pricing, promoting, selling, and distributing ideas, goods, and services
Marketing involves getting consumers to buy a product or service.
Management
managementthe process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources
Management is an important function of business.
Finance and Accounting
financethe business or art of money management
Finance requires analyzing financial statements to make future decisions.
Finance and Accounting
accountingmaintaining and checking records, handling bills, and preparing financial reports for a business
Accounting requires attention to detail and accuracy.
How the Functions of Business Are Interdependent
The functional areas of a business depend on each other.
Sometimes, the functional areas of a business conflict with each other.
Graphic OrganizerExample of How Functional Areas Depend on Each Other
A furniture maker’s sales are decreasing.
The accounting and finance department notice decreasing sales.
If the furniture is too highly priced, more efficient procedures will have to be implemented.
A new marketing plan is created.
The accounting and finance department will monitor the effects of new marketing efforts.
Graphic OrganizerExample of How Functional Areas Conflict with Each Other
Management wants to increase sales by 20 percent within three years.
The production department suggests improving quality.
The marketing department requests more funds for projects.
Accounting says there is not enough money for either plan.
The final plan involves ideas from all the functions of business.