Competition and Free Enterprise

Which government regulations could you avoid if you no longer had employees? Check all that apply.

-Businesses must pay taxes on employee salaries. -Businesses must pay employees a fair wage.

Which choices are most likely to help you beat your competition by gaining more customers and selling more frozen yogurt? Check all that apply.

-Invent a new flavor, combination, or topping. -Place coupons online or in circulars. -Sell shirts, hats, or other merchandise bearing the company's logo. -Offer a loyalty program that gives customers free frozen yogurt.

Which choices will help you cut back on expenses so that you can spend more money on promotions or advertising? Check all that apply.

-Use less-expensive ingredients. -Look for discounted or used machines. -Hire a young employee at minimum wage.

Write a paragraph about your business, how you plan to compete with the other local frozen-yogurt shop, and why your action plan will work. Use what you have learned in this lesson to support your plan.

By not hiring another employee, I will have to follow fewer government laws. Not having an additional employee will help keep my production costs down and allow me to sell my product for less. I will also ensure that all consumers know the ingredients of my yogurt. My strategies for competing with the other frozen-yogurt shop will work because lower prices will attract consumers. By advertising that our ingredients are natural, consumers will return.

To begin your plan, you will need to know about your competition and decide how you will attempt to compete. Your competitor is called Create Your Own Yogurt, and it uses artificial flavors that customers use to create their own yogurt. In the lesson, you learned about three techniques businesses can use to compete with one another. In two to three sentences, explain how you will address each area of competition to help make your business successful against this competitor.

First, I will focus on lowering prices. I will do this by making sure my costs to run the business are low, and I will start by running the shop myself. I will create a better product by using healthier, better ingredients to attract more customers. Finally, I will be innovative by offering ingredients that aren't sold anywhere else.

The next step in your plan is to identify which government regulations will impact your business. In two to three sentences, describe what those regulations are and how you plan to meet them.

We must both pass serious health inspections made by the local government and advertise what we use to make our yogurt.