Business: Realization of Profit Motive
As we wake up in the morning, brush our teeth, take our baths, dress up, eat and take a ride to work or school, the process seems very routine. It is equally routine to go to Mr. Biggs for a snack or chat with a friend using a mobile phone.
What is not so obvious is that we are participating in a mutually supporting set of activities that together define our quality of life and well-being. The toothbrush and paste, toilet soap, clothing, food, transportation, and cell phone are outputs of institutuons purposely created to produce those goods and services at a profit.
Such institutions are called business organisations and the primary consideration for forming them is known as the profit motive.
Business like the economy of which they are a part, are concerned with the production, distribution and consumption of goods and services. They determine the goods and services to be produced, where and how those goods and services would be sold as well as how best to influence consumers' purchase decisions at a profit.
For the profit motive to be realized, the outputs of business organizations must be capable of satisfying the needs and wants of identifiable groups of individuals or other institutions. The groups, however, must have the ability and willingness to pay for the goods and services needed to satisfy their wants.
This way, an exchange platform is created whereby what is produced and what is demanded are exchanged at a price. That exchange platform is called the market.
Hello @tomlee
This publication is very precise and explains in clear language what the market is and the important aspects involved in it, which define it.
Your explanation is excellent.
Thank you for sharing it
Thanks friend!
Hello dear @tomlee, very good point.
We often take advantage of many devices, gadgets and utensils that were created to make our lives easier, however, most of us do not stop to think about the process that implies having them at our disposal, they are there, we use them and now.
We pay them for those processes, don't we? And with that, they achieve their profits!
For the profit motive to be realized, the outputs of business organizations must be capable of satisfying the needs and wants of identifiable groups of individuals or other institutions. The groups, however, must have the ability and willingness to pay for the goods and services needed to satisfy their wants.The biggest mistake that many businesses make is to believe that only price indicators drive sales. Though basically the most important thing is the ability to sell.
Everything in business is about production, selling and buying. We do the same chain continuously.
It has been a fact that the law of demand and supply has always been the push behind sales, you cannot shove what i do not like down my throat, i must be willing to get it and have the financial power.
@tipu curate
Upvoted 👌 (Mana: 4/20 - need recharge?)
Dear @tomlee
Thank you for choosing PH community. I would like to continue supporting you with our upvotes, however at the moment I'm afraid I cannot do that.
Our focus is to support content posted by active members and based on your comment section I came to conclusion, that you hardly engage with others.
Hope you understand. We've limited amount of upvotes and our priority must be to support active users, who also read and comment on publications done by others within our community.
Yours
@crypto.piotr
The need to trade has been existing for a very long time so it just grew to become a business model "buying and selling". Thanks for the post @tomlee