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A Business to Be Successful

By:   •  September 12, 2013  •  Essay  •  737 Words (3 Pages)  •  918 Views

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A Business to Be Successful

In order for a business to be successful, a management team must have a correct target, and know how to analyze the situations of their business. Economic necessities and the vagaries of the marketplace will influence much of what happens in their business; however, we need to follow with the current economic situation, so, there are six points that can help us to have successful in business.

• Factors of Production refers to the production and operation activities for social needs of various social resources. It is necessary to consider natural resources of each national economy and market place during the process of production and management. There are several elements that make up the factors of production, such as natural resources, human resources, capital, entrepreneurship, and knowledge. And, a management team must consider these to have an advantage. Choosing valuable employees is important for the company's infrastructure. Nevertheless, globalization provides more opportunities to enhance free trade.

• Economic system—"Means by which a society distributes its resources to satisfy its people's needs" (Bovee & Thill, 2008, p28). No matter what individuals, businesses, and the government, want to pursue allocations of a society's resources depend on the society's economic system. There are two main systems: free-market systems and planned systems. Actually, there is no economy that is truly "free", most economies are both free-market and planned systems. A management team should compare their advantage and disadvantage, and combine its investment program to choice which country or place to develop.

• Demand and Supply, demand—"Buyers' willingness and ability to purchase products". Supply—"Specific quantity of a product that the seller is able and willing to provide" (Bovee & Thill, 2008, p31). The relationship between supply and demand is that of the condition of the commodity economy, commodity supply and demand of the interrelated and mutually dependent relations. It also is the relationship between production and consumption reflected in the market. The management should correctly judge between supply and demand, and grasp the law of value. Because of anarchy in competition and the dominant production of commodity economy in private ownership, the law of value and value by the deviation of the price adjustment when supply exceeds demand, prices fall; and when demand exceeds supply, prices rise.

• Competition—"Rivalry among businesses for the same customers" (Bovee & Thill, 2008, p34). In the business area, competition is inevitable, but the competitive advantage can improve businesses. Because when business, competitive advantage becomes larger or stronger, than other businesses can't compete. Therefore, it can be said that competitiveness is a comprehensive capacity. In other words, the competition leads to the business team need to have creativity. Innovation

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