The Purpose of A Business

The purpose of a business is to offer value (through products and/or services) to customers, who pay for the value with cash or equivalents. At a minimum, the money received should fund the costs of operating the business as well as provide for the life needs of the proprietor. Any money in excess of these needs of funding and salary margin or profit may be reinvested in the business; retained for future needs and security; and/or used for good causes. There are direct actions required in this process: gaining, sustaining, and expanding customer business. These actions may also include R&D - research and development - (creating new value); marketing (creating need); and finance (pursuing payment to create better cash flow). There are often indirect actions, which may include upgrading equipment; improving or redeveloping physical property and work space; legal protections etc. In large, complex, and diverse companies, e.g., IBM, these indirect actions are often departmentalized and run by distinct managers. Proprietors are responsible for the risks involved in creating and operating a business but employees are not. Therefore, employees are paid according to the proprietors assessment of the value they provide, but the purpose of the business is to offer value to customers, not to offer employment. Value is always what something seems to be worth to the customer. A brand is the ideal representation of the unique value you offer. The ultimate brand is your name when recognized as the leader in your field. Alan Weiss 2013

A.

value expanding

product marketing

service finance

customer employee brand

Match the words in the box with their definitions below.

1. expanding becoming larger in size, number or amount. 2. service 3. branding a particular type of help or work that is provided by a business to customers, but not one that involves producing goods. unique design, sign, symbol, words, or a combination of these, used to create an image that identifies a product or service and differentiates it from its competitors.

4. employee someone who is paid to work for another person, company or organisation. 5. value 6. finance the amount of money that something is worth. the management of money by governments, large organizations, etc.

7. marketing the activity of deciding how to advertise a product, what price to charge for it etc, or the type of job in which you do this. 8. product something that is grown or made in a factory in large quantities, usually in order to be sold. 9. customer someone who buys goods or services from a shop, company, etc.
B. Complete the table below with the correct forms of the words in each row. Noun Verb Adjective Adverb Person

value product/production/ productivity service custom expansion marketing finance employment brand/ branding

value/evaluate produce service/serve --------expand market finance employ brand

valuable productive service customer expanding marketing financial employed/ unemployed brand

valuably productively -------------------------------------financially -----------------------

valuer producer server customer ----------marketer financier employee/ employer -----------