How Businesses Meet Needs and Wants
- You're at a café, sipping coffee.
- The beans were grown on a farm, roasted in a factory, and brewed by a barista.
This journey from raw material to finished product illustrates how businesses operate to meet the needs and wants of individuals and organizations.
The Transformation Process: Inputs, Processes, and Outputs
- At the heart of every business lies a transformation process.
- This process involves converting inputs into outputs that customers value.
Inputs: The Factors of Production
Definition
Inputs
Inputs are the resources businesses use to create goods or services.
These are often referred to as the factors of production.
Note- The transformation process is not limited to physical changes.
- It can also involve adding value through branding, customer service, or unique features.
Outputs: Goods and Services
Definition
Outputs
The outputs of a business are the goods or services it produces.
These can be:
- Tangible goods: Physical items like clothing, electronics, or furniture.
