Demand

In general, the demand states that the quantity demanded by a consumer for a price.

Above is the basic demand curve for any good.

Hierarchy of needs

What motivates behavior? According to humanist psychologist Abraham Maslow, our actions are motivated in order achieve certain needs. Maslow first introduced his concept of a hierarchy of needs.In his 1943 paper "A Theory of Human Motivation" and his subsequent book Motivation and Personality. This hierarchy suggests that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Hierarchy of needs theory remains valid today for understanding human motivation , management training and personal development.The Maslow's Hierarchy of Needs five-stage model above is clearly and directly attributable to Maslow; later versions of the theory with added motivational stages are not so clearly attributable to Maslow. These extended models have instead been inferred by others from Maslow's work. Specifically Maslow refers to the needs Cognitive, Aesthetic and Transcendence as additional aspects of motivation, but not as distinct levels in the Hierarchy of Needs.

• Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow's Hierarchy of Needs helps to explain how these needs motivate us all.

• Maslow's Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself.

• Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development.

1970s adapted hierarchy of needs model, including cognitive and aesthetic needs.

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.

2. Safety needs - protection from elements, security, order, law, limits, stability, etc.

3. Belongingness and Love needs - work group, family, affection, relationships, etc.

4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.

5. Cognitive needs - knowledge, meaning, etc.

6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.

7. Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.

1990s adapted hierarchy of needs including transcendence needs.

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.

2. Safety needs - protection from elements, security, order, law, limits, stability, etc.

3. Belonging and Love needs - work group, family, affection, relationships, etc.

4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.

5. Cognitive needs - knowledge, meaning, etc.

6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.

7. Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.

8. Transcendence needs - helping others to achieve self actualization.

Needs and Wants

Needs and wants

Need is a motivating force that compels action for its satisfaction. Needs range from basic survival needs (common to all human beings) satisfied by necessities to cultural , intellectual and social needs (varying from place to place and age group to age group) satisfied by necessities. Needs are finite.

Basic needs are;

• Food

• Shelter

• Clothes

• Protection

• Reputation

• Education

A want is something that is desired. It is said that every person has unlimited number of wants. In other words wants are ways to satisfy needs.

• If the need is food , wants are bread,rice,noodles,ice cream etc:

• If the need is shelter , wants are flats, apartment,tent etc :

• If the need is clothes , wants are t-shirt, trouser, skirt etc :

• If the need is protection , wants are from dogs , security system , alarm system etc :

• If the need is reputation wants are from elders , being famous etc :

• If the need is education wants are private education , government education etc :

Business studies concepts

Detailed/Important Concepts in Business Studies

Definition of business

Still there is no commonly accepted definition for business. The word "business" means the state of being busy.

Most of the people think that a business is something related to buying and selling. Some people think that it a profitable economic activity which have the intention of earning profits.

In general it is better to introduce the concept of  business as an economic activity done in firms (Only profit intention).

Commercial business

Any sort of activity done to to deliver goods and services in order to sacrifice consumer needs and wants with the goal of earning profits.


Concepts of Business

• Needs and Wants.
• Hierarchy of needs.
• Demand.
• Exchange.
• Customer value.
• Customer satisfaction.
• Market.
• Market place and Market space.
• Necessity of businesses.
• Business expectation.
• Vision.
• Mission.
• Goals.
• Objectives

What is a business ?

A business, also known as an enterprise or an organization , is a firm involved in the trade of goods or services (Consultancy etc)or both, to its' consumers around it.In other words it is an organization or it can be an economic system where goods and services are exchanged for money or for an acceptable value.Further more business should not be a specific place where someone can go and purchase their desired goods or services but it can be a virtual business space or a digital market (eg- e bay)where consumers and sellers having one to one and online connections.