The business that I am choosing to write about is a small convenience store located across the street from my children’s school. It is owned and operated by a very pleasant Indian couple. It is located in a remote area where there are very few businesses in close proximity. This store offers a variety of products and prepared foods.
The three main components of the business system that comprises this particular business are as follows: Business as Commerce – They give money in exchange for the products they need to fill their store. In this case, the owners will look for sales at other stores, and then purchase them to sell in their store. They are making a profit from their trade because it is increasing their utility. Business as an Occupation – In order for them to increase their profit they would need to specialize in food service and preparation, customer service, and modern technologies. In other words, they had to learn how to make and present the foods that they offer, they had to learn how to communicate appropriately with their customers, and learn how to gain access to and operate new machines to make a greater profit. Business as an Organization – For the time being, this particular business is owned and operated by just two people. If sometime in the future they would decide to combine their talents and resources with other people, they will be able to pursue new opportunities and reduce transaction costs and increase their profitability.