Week 2 Post: Business Structures and Business Functions

The first industrial revolution happened in 1760 when mechanized machines were invented in order to increase the efficiency of production. An example of a mechanized machine would be cotton mills. Later in 1850 (2nd Industrial Revolution), machines started evolving, as people started to focus more on mass production. After Benjamin Franklin’s discovery of electricity some time in the 1700s, people in the 1800s started creating steam engines and production lines to further increase the efficiency of production. In the present (3rd industrial revolution), we are developed around the web culture. Materials have become easier to access than it was in the first and second industrial revolution with people selling merchandise online, making it easier for people to get materials for their own DIY projects as well. As for technological changes, people are inventing more complex machines to create efficient and unique items such as a 3D printer, or a laser-cutting machine.

It has become important for businesses to understand the history of business in the maker economy because not only can they avoid similar business mistakes, they are also able to follow the trend of each revolution and understand how to improve products that are being created. For people who are trying to fundraise or create a business like us, the history of business in the maker’s economy greatly helps us with a better judgement of budgeting, pricing strategies, marketing techniques, etc.

In many cases, it is also important to have a solid financial breakdown of business activities because having a record would allow businesses to reflect on what they have done in order to build the business. People are also able to manage the expenses coming in and out of the business, as well as fix any expenditure in future cases if the previous project cost too much to build. Thus it is a wise idea to keep a good costing analysis and good financial records in order to keep track of the budgeting for the business.

In business, the 4P’s are four important aspects to consider. It stands for product, price, place, and promotion. It is important to consider all of these factors because based on the product one is trying to sell, the business needs to target the correct location and advertise an appropriate promotion in order to gain the most customers. Depending on the “want” value of the product, as well as it’s production cost, the price can be confirmed with two or three times it’s production value. Considering all of these values, as well as using a vast range of marketing communication techniques are crucial to having a successful business, as it helps businesses with planning the production strategically, market to the right audience, budget costs, and gain better experiences in business for future opportunities.

An example of an organization that has an interesting and effective marketing/sales strategy is Doritos because rather than coming up with their own advertisement, as well as putting forward money to create these ads, they made a contest that lets their fans create their own commercials. This allowed the company to get many interesting commercials that not only saved them some budgeting from hiring people, they get a unique commercial to advertise their product. This technique is effective as it allows them to gain very diverse advertisements. The Doritos Create Your Own ad campaign’s fan ads were shown at the SuperBowl, where over 100 million people were watching, making them to expand their target audience all over the world to those who enjoys watching the game. With a large target audience, and budgeting from the ads created by fans, this ad campaign may be one of the largest effective marketing and sales strategy created.