Fluent Essays

The presentation should include the following: Company name and logo Company objectives from your original business plan Rational for start-up choices submitted for first live decision. Include: Espresso machine, furnishing Number of managers/servers Price Promotion Operating hours Coffee type Number of cups Overall performance with the following: Income Statement (final version) Balance Sheet (final version) Cumulative Net Profit Cumulative Net profit margin Customer Satisfaction Rating Capacity Utilization Ratio Describe one business concept or term from the simulation experience that was most interesting to you. Describe what you learned from decision-making from the simulation that you can apply to your career? Running head: BUSINESS PURPOSE AND ECONOMICS 1 BUSINESS PURPOSE AND ECONOMICS 2 Business Purpose and Economics Student’s Name Institutional Affiliation Course Date Purpose of Business According to Lynn & Wallace (2019), maximization of profits is the primary purpose that makes individuals venture into business. Every individual seeks to profit from his company; thus, it becomes the primary purpose of beginning a business. Additionally, satisfying human wants is the other central objective that makes people venture into business. Besides making a profit, human wants are countless, and many investors seek to venture into business to satisfy these wants. For instance, some areas may lack suitable means of transport from which an investor may seek to provide transport services to satisfy human desires of that place while earning income inform of profits from the business. Growth is another reason why individuals invest their income in companies. Additionally, creating value is another purpose of a business. In this context, business people often venture into companies to ensure the amount paid by a client is equivalent to the service the client gets. Customer exploitation by intermediaries is a significant issue which investors ident to solve when they venture into business. The agricultural sector has numerous cases of farmers exploitation by intermediaries. Agricultural produce usually consumes a lot of capital before they are ready but ends up being sold at meager prices in the market. As a result, the government or even well-off investors may decide to create agricultural centers to buy all farm produce and ensure farmers get the value of their products. In the long run, other business purposes are to create employment opportunities and grow towns and markets. The Biblical Wisdom and Perceptions That Can Be Useful to Business The Bible is the only book that contains the best business ideas that entrepreneurs need to understand to build a successful business. The Bible is made up of the best principles that are essential to building a successful business. I have derived several directions from the Bible which business leaders can follow to attain success in their business careers. Always take the second step. The above biblical principle requires entrepreneurs always to do more than other people expect. In the same context, the code requires business leaders to surprise people by paying attention to minor matters that other people do not. The principle is fundamental to those business managers because it needs them to be different and always go the extra mile to achieve their dreams. In Mathew 5:41, Jesus himself gives this principle to business people. During his ministry, Jesus said, if somebody forces you to go with him one mile, go with him two. Jesus gave this opinion to his supporters intending to separate themselves from the culture in which they were living to help others to see more clearly. The principle is applicable in business because entrepreneurs should separate themselves from others by working extremely hard to realize their business goals. In the long run, entrepreneurs should use the golden rule found in Luke 6:31 as the foundation of their business. The verse requires business people to do to others the same way they would expect them to do to them. In this perspective, entrepreneurs should heed this principle to start and grow their businesses into a large industry. Five Functional Areas of Business That Help Organization to Succeed The five functional areas of a business comprise sales, advertising, finance and accountancy, customer service, and human resource. Each of the above functional areas performs critical activities for the success of the business. The sales team also ensures client satisfaction by showing them the best use of products and particularly electronics. On the other hand, the marketing team promotes the companys goods and services via posters and media platforms to widen the companys customer base. According to Clark & Babson (2017), finance and accounting help the organization track income and outflows, ensure legal compliance, and provide stakeholders and government with measurable statistics essential for making better business decisions. Customer service is responsible for promoting customer satisfaction as well as building customer loyalty. Lastly, the human resource department is responsible for maximizing the output of an organization by enhancing the efficiency of its staff. Economic Growth Analysis According to the latest media publication on Gross Domestic Product (GDP) by the Bureau of Commercial Analysis website, the economy is mounting by the proportion of 1.70\% in the United States. The improved quantity and eminence of work, natural resources, physical investment, and scientific advancements are unique factors leading to economic growth in the United States. For instance, the Bureau of Economic Analysis website states that America has advanced technology by 1.22\% in the past two years (Bassellier & Benbasat 2018). Technological advancement has increased efficiency in labor from which businesses can increase their production. The increased output by various organizations affects increasing profits, thus leading to more excellent economic development—alternatively, the increased quality and quantity of labor. The quality and quantity of labor supply have led to increased production in companies, which increases economic growth through an increased wage. Equilibrium Price Analysis The deep freeze in California would damage strawberry crops. Due to crop damages, there will be a scarcity of strawberries in the market, thus increase the demand for strawberries in the market. In this context, the increase in demand with low supply would affect the equilibrium price of strawberries. In this perspective, consumer and producer desires would vary due to the variation of demand and supply. Assuming the other factors remain constant, the increase in the equilibrium price would later cause the market to decrease because consumers would not pay more for strawberries and look for alternatives. The decrease in demand due to the availability of other options will cause the equilibrium price to return to its normal position where the need of consumers and supply of traders used to agree. Condition 7 The increase in the minimum labor wage of entry-level workers would increase the market prices of a chicken sandwich in the local restaurants. In this case, the cost of labor is improperly allocated because the government increases the cost of laborers without increasing the working hours. In simple terms, the cost of delivery is not directly proportional to the hours worked and thus damages the profits of chicken farmers. As a result, farmers would seek a way to recover their earnings by increasing chicken prices in the market. The increase in chicken prices would lead to a rise in the equilibrium prices because consumers would be adamant about taking the new prices. In the same context, consumers would also increase the demand for a chicken sandwich because there would be enough cash at their disposal. In simple terms, the increase in the minimum labor wages would also increase the demand for various products in the market. Therefore, the rise in prices for a chicken sandwich would not affect the equilibrium price because consumers would pay for higher prices. The equilibrium price would remain constant despite the increase in the prices in the market. Situation 8 The increase in the storage capacity of batteries would lead to a decrease in the price of electric and hybrid automobiles. The availability of batteries in the market would provide consumers with alternatives, thus reducing the demand for electric and hybrid automobiles. As a result of a decrease in electric and hybrid cars, their supply chain would go down. In the same context, the fall in supply for electric and hybrid automobiles would decrease prices for the same goods. However, the decrease in fees for electric and hybrid cars would increase their demand after a certain period, thus increasing supply once more. Situation 9 The increase in new jobs in the region would lead to a rise in the market price for homes in the area. The availability of new jobs would lead to the improvement of the living standards of residents. The availability of new jobs means there would be a lot of money in disposal, thus increasing the prices for homes in the region. The creation of more jobs means an increase in income and expenditure, and hence the market price for homes in the area would hike because of increased demand caused by the rise in earnings. In simple terms, increased job opportunities mean high consumer expenditure and high demand for residential homes in the area. Therefore, the market prices for homes will be very high. References Bassellier, G., & Benbasat, I. (2018). Business competence of information technology professionals: Conceptual development and influence on IT-business partnerships. MIS Quarterly, 673-694. Clark Jr, W. H., & Babson, E. K. (2017). How to benefit corporations is redefining the purpose of business corporations. William Mitchell Law Review, 38(2), 8. Lynn, M. L., & Wallace, D. (2019). Doing business with the Hebrew Bible: A hermeneutic guide. Journal of Biblical Integration in Business, 7(1).