Week 2: Business Structures & Functions

Business Structures & Functions

The first industrial revolution was in 1760 concerning the mechanization of machines where the emphasis of business was on centralized and large scale production. The second industrial revolution in 1850 saw the introduction of steam engines, electricity, and production lines that created the business model for factories and the division of labor. The 3rd revolution refers to the contemporary revolution happening now concerning web culture, e-commerce and DIY & maker culture that empowers the individual in the marketplace. It is important to know the history of business in the maker economy because it allows entrepreneurs and start-ups to understand and investigate the macro-trends of the economic climate.

It is important for a few major reasons to have thorough records of business functions:

1) It allows you to track, and reference all incoming and outgoing payments

2) It allows for more accurate budgeting

3) It keeps you from spending excess in taxes

Marketing

The four P’s refers to a business tool used to determine the value of the product or service in consideration. These are the follow; Product, price, place, and promotion. It is important to consider all of these elements to ensure that you are properly communicating the value of your product or service to the consumer. It is also meaningful to use a range of marketing communication methods┬áto express the value of your product or service because it allows for you to reach a larger audience of potential consumers. If, as a business, you were to market strictly by one method you may not be effectively reaching the volume of consumers that a range of marketing methods could reach.

An example of an organization with a particularly interesting and effective marketing strategy is Loot Crate. Look Crate uses an ambassador program to provide incentive for their customers to recruit new subscribers. Each Loot Crate ambassador gets a unique sign up URL that gives a discount on their monthly subscription for each successful customer recruited. Then that new customer can do the same, and the cycle continues. Loot Crate subscribers therefore have taken to social media websites like YouTube and Twitter to spread the word and reap benefits, allowing the business itself to have the wealth of their promotion done inherently by their customers.

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