2:1 - Economic Systems

Chapter 2 Section 1: Economic Systems

Assignments:

• Graph Skills (p.24): #1 & 2
• Checkpoint (p.24): What are the three key economic questions?
• Check Your Understanding (p.27): #1 & 2
• Checkpoint (p.27): What are two examples of economic goals?
• Checkpoint (p28): What are the chief economic activities in a traditional economy?
• Section 1 Assessment: #2, 3, 5, 6, 7, 8, 9, 12

Here's a video from TED Talks talking about the "Death of Innovation" being the "End of Growth".

This next video is about Economic Freedom and Growth, which is a nice segue to the next section of the text.

1.3: Production Possibility Curves

Chapter 1.3:  Production Possibilities Curves

• Graph Skills (p.14): #1 & 2
• Checkpoint (p.14): How do production possibilities curves show alternative uses of resources?
• Innovators (p.15): How can the concept of scarcity help explain a wide range of human behavior?
• Checkpoint (p.15): What information can a production possibilities curve reveal?
• Checkpoint (p.15): How does technology increase production possibilities?
• Section 3 Assessment (p.15): #4, 7, 8, 9, 10

Business Planning

Today you will begin working on your preliminary business plan:

First, come up with an idea:

• Lemonade stand
• Refreshment stand at local games
• Child care
• Hot dog stand
• Yard care
• Developing a web page for others
• Youth community center
• Shopping service for seniors
• Pet sitting
• Delivery services
• House cleaning service
• Janitorial services for local businesses
• Selling used clothes
• Jewelry making
• Catalog sales
• Temporaries agency
• Computer service business
• Add value to an existing product (packaging, new Marketing local crafts design, new customers, different size)
• Travel services
• Musical group
• Repair services (shoes, electrical equipment, cars, clothing, etc.)

Next, answer the following questions [neatly] on paper.  If you don't know the answers, write out the question and then complete them for homework:

1. What is the name of your business?
2. Describe your business in one paragraph.
3. What is your product or service?
4. Who will buy it? What is your customer demographic?
5. Where should you locate the business?
6. How can you attract customers?
7. What is your competition? List and describe your competitors.
8. How much should you charge for the products or service?  Why?
9. What advice do you need and who can provide it?
10. How will you organize the managers and/or workers of the business?
11. How will you split the profits? Who is responsible for the losses?
12. What should you consider to be able to produce the product and get it to the customer?
13. How much money is needed to get the business started?
14. How many customers will you have per month and how much will they buy per month?
15. How much does it cost to make the product or provide the service?
16. What are your operating costs? (Include your own salary.)
17. How much money will your business earn each month by selling your product or service?
18. How much investment will you need to keep the business going until you make a profit?
19. How much money do you need to borrow to start this business?
20. How will you make the business grow in the future?

Design Questions:  Think about how people will recognize your business.  This may include business cards, flyers, signs, etc.. 

1. What would you use as a logo?  Why?
2. What color scheme would you select?  Why?
3. What other design elements would you need to consider for your store, business place or service?

Your Business Name & Logo

If I was starting my own photography or video business, I might think about some general names:

• Griffith Enterprises
• Campbell County Studios
• AskGriff Productions
• Jellico Photography

So looking at those, there are a couple of problems.  First, names like Griffith Enterprises are a little obscure.  If you heard someone say, "I went to Griffith Enterprises" you would have no idea why.  Campbell County Studios is a little better, but people aren't really going to know what sort of studios it is -- and it will limit you if you ever want to do work in another county or state.  AskGriff Productions is also too vague. Jellico Photography is pretty straightforward, but what if you want to do video?  Web design?  What if someone is in LaFollette or Rocky Top and they would rather hire someone from their home town?

When choosing a business name, keep the following tips in mind:

• Choose a name that appeals not only to you but also to the kind of customers you are trying to attract.
• Choose a comforting or familiar name that conjures up pleasant memories so customers respond to your business on an emotional level.
• Don't pick a name that is long or confusing.
• Stay away from cute puns that only you understand.
• Don't use the word “Inc.” after your name unless your company is actually incorporated.
• Ask family or friends if it makes sense -- and then ask them, "Could it be seen as offensive in ANY way?"  (Sometimes these little things will pop up and kill a business)
• Avoid new or trendy words (i.e. bae, fam, etc.) because they will soon be unpopular.

Logo Design:

The Next thing to think about when starting a business is what sort of logo would your business have?  Nike has a swoosh.  Disney has a castle with a Disney signature.  Playboy has a rabbit.  What would YOUR business have?  Today we will begin planning out a logo.  These can be on signs, billboards, clothing, on a letterhead or on business cards.  Logos are also used to develop company branding.  The Oakland Raiders shield, the Nike swoosh, The Vols "T", or the Chevron standard are examples of known brands.  It becomes the symbol by which a company is identified.

A good logo should be easily recognizable, fairly simple, and be able to be reproduced with limited colors -- including black and white.  When I taught graphic design before, I drew a whiteboard full of logos (see below) which are easily recognizable (or were at the time) and I used only one color -- black.  

Here are some color examples of logos:

Once you have a basic logo in black and white, it's easy to use Photoshop to create a variety of modifications of your logo.  The "Espresso A-Go-Go" logo (below) demonstrates that.

Another example is the NBA logo (below) showing black and white, 2 colors, and 2 colors with an effect.  Note the differences between the heads/ears of the three examples.  Even though they are slightly different, they are still recognizable as the NBA logo.

Your logo should be describable ("It's a big golden M"), effective without color, memorable, and scalable.

Remember, it's okay to keep it simple -- and stick to what works.  This example shows two similar companies and their different approaches to logo design and corporate branding:

I want you to conceive a logo that depicts you, your style, your business, etc.  Begin sketching ideas on paper for now and turn in your final business papers on Friday.  Don't over-complicate things or be too literal -- look at all of the most recognizable logos and you will notice that very few demonstrate what the company actually does.  For example, if your company was called Sun Beach Productions you don't have to use a sun shining on a beach.

Still confused about what makes a good logo?  Check out this logo design tips article or from a professional logo designer for some extra information.  

Here's a demonstration of the logo development process:

Finally, I would like you to find some examples of well-designed logos [and poorly designed logos] and bring them in to class.  Check newspapers, junk mail, catalogs, etc.  I will use the examples to showcase the differences.

And speaking of "The Bad" and "The Ugly"... here are some more examples of logo design gone wrong:

Here are some examples of black and white logo's [these are for car companies, obviously] to show you that it's possible.

Click Image to Enlarge

A few more well-known logos in black and white:

This was a tribute to Apple founder Steve Jobs after his passing:

Finally, here are some examples of student-created logo's:

There are many websites and blogs out there that focus on logos and logo design.  I will list some as I discover them:

http://logodesignerblog.com/

Now, although logo's need to be able to be depicted in black on white, the color selection is critical as well.  Psychologically, we all react to colors in a similar way.  Red tends to excite us, for example -- which is why a lot of kids cereal boxes focus on red, while healthy cereal aimed at adults tends to be focus on green which makes us envision health or peace.

Here's a great color chart relating to logo design.

Here's another great psychology-based chart for logo design and color:

Sometimes logo's can even include some subliminal imagery:

This is saying that Amazon has everything from a-z... but also demonstrates a smile.

In 2005 B&R changed their logo include the embedded 31 from the number of flavors they offer.

This one is really only noticeable if you're a nerd -- the top row is the binary for 80 and the bottom, the binary for 20.

In this case, the negative space between the E and the x shows an arrow.  This psychologically makes people envision them as moving forward or being fast.

The Milwaukee Brewers embedded the M and B in the mitt.

Sun used an ambigram (can be read from any direction) -- even though the logo doesn't include any "S's".

If you look in the mountain's negative space, you'll see a dancing bear.

Some have said that the word "tit" appears here -- but if you look at that section, it's two people sharing a chip and a bowl of salsa.

As you look at their logo, picture the yellow circle as the front wheel of a bicycle.