Thought for the day:

1. Thought for the day: There is only one boss. The customer. And they can fire everybody in the company from the chairman on down, simply by spending their money somewhere else. Sam Walton (founder of Walmart)discuss…..

2. iGCSE Business expectationsComplete all work to the best of your ability.Bring your laptop (charged), the textbook, lined paper, calculator and writing equipment to all lessons.Complete all homework & tasks to the deadline.Keep all hard copy of work organised in a file that can be checked regularly by the teacher.Organise all online work in a e-file on your laptop.Ask for help when needed. UNIT 1.1 LESSON 1

3. File headings Refer to the contents page of your text book. • For now, on your computer make a folder called: iGCSE Business • Make a subfolder called: • Topic One_Business and the Environment Make a subfolder in ‘Topic One’ called: • 1.1 Business Activity

4. Why study IGCSE Business Studies? • Understanding different forms of business organisations, the environments in which businesses operate and business functions such as marketing, operations and finance; • An appreciation of the critical role of people in business success; • Confidence to calculate and interpret business data; • Communication skills including the need to support arguments with reasons; • Ability to analyse business situations and reach decisions or judgements.

5. How you will be assessed:

6. Internal – School assessed • You will complete a number of tasks through the year which will go towards your school assessed grade.

7. How to get an A A Grade Evaluate, discuss, justify, advise, recommend. reasoned explanations, develop arguments, understand implications and draw inferences Examine, Analyse, Interpret, Formulate, Cause and Affect, advantages & disadvantages. A04 Evaluation Apply facts, terms, concepts, theories and techniques to business problems and issues. Link to a business. A03 Anayslis A02 Application facts, terms, concepts and conventions appropriate to the syllabus; theories and techniques A01 Knowledge & Understanding

8. Don’t worry if seems confusing at the moment… it’s a lot to take in at once…

11. Topic One:Business and the environment in which it operates1.1: Business Activity UNIT 1.1 LESSON 1

12. 1.1 Business Activity

13. 1.1.1: Introduction to business ActivityNEEDS & WANTS UNIT 1.1 LESSON 1

14. Aim of this section…… 1.1 Business Activity To understanding the concept of businesses providing for needs & wants

15. Starter Activity On a post-it Define a Business In your own words Stick on board • Be creative • Use key words

16. What is a Business? A traditional definition: ‘A business is an entity which tries to combine human, physical and financial resources into processing goods or services to respond to and satisfy customer needs’.

17. What is a Business? A traditional definition: ‘A business is an entity which tries to combine human, physical and financial resources into processing goods or services to respond to and satisfy customer needs’.

18. Goods and Services Business produce goods and services. • What is the difference? Which is which?

19. Goods and Services Business produce goods and services. • What is the difference? • Goods: you can touch and use – clothes and books • Services: other people do for you, cutting hair, selling goods in a shop.

20. Goods and Services Products for consumers are called consumer goods. Products sold by one business to another are called producer goods (Some business serve both)

21. Needs & Wants Don’t mean the same thing. • Needs are items that we must have in order to live. • Wants are items that we would like to have, although we won’t die without them.

22. Activity • Justify why your answer Produce a table that list your needs and wants and the reason.

23. Needs & Wants Activity 1.2 pg 11 Q. 3,4 • Skill: A01 - knowledge & Understanding

24. Needs & Wants The act of preparing a good or service for sale is called production.

25. Extension: What is a business? List 3 different definitions of a business using the Internet.

26. p • Everyone has basic needs for food, shelter and clothing in order to survey. • On top of these we have additional wants • Businesses produce goods & services to help satisfy consumers wants and needs.

27. Plenary • 3 min: • Draw • One thing you need& one thing you want • One Good & one Service

28. PlenaryLevel achieved_____ What do you now know as a result of today’s lesson? What are your areas for improvement? What are you going to do about this?

29. 1.1 Business Activity

30. 1.1.1: Introduction to business ActivityPurpose of Business Activity UNIT 1.1 LESSON 1

31. Aim of this section…… • Understand the purpose of business activity

32. RECAP • What is Business? • What is the difference between a good and a service? • What is the difference between Needs and Wants?

33. Demand & Effective Demand • When you want something you create a demand for it. • But how can you satisfy your demand?

34. Demand & effective Demand • When you want something you create a demand for it. • But how can you satisfy your demand? Have money…. …. Be willing to spend it!

35. Demand & effective Demand Have money…. …. Be willing to spend it! But that’s not all… other people have to have the same demand… a business will not supply to just one person. This is ‘effective demand’…. If enough people want something and are able and willing to pay for it.

36. Satisfying needs and wants • To survive, businesses must produce goods and services that satisfy people’s needs and wants. • They also need to understand that these may change over time. • Also, other business will be attempting to do the same. • This shows business operate in a changing and competitive environment.

37. Scarcity • Business have to satisfy peoples’ needs & wants. • Needs – to survive • Wants – are infinite. • Most people want more than they already have. • Unfortunately resources are finite. • This means a limited amount. • Economists say that resources are scare.

38. Scarcity • We can not have everything. • We have to make choices • Businesses have to make choices too… • Should a farmer grow sugar canes or Coffee? • ‘Opportunity Cost’.

39. 1.1.1: Introduction to business ActivityAdding Value UNIT 1.1 LESSON 1

40. Of this section…… • To understand the business activity of adding value

41. Adding Value • How much would you pay for this?

42. Adding Value • How much would you pay for this?

43. Adding Value Business aim to provide products and services to consumers that are more attractive than those of their competitors. …. Make it more desirable. This is called Adding Value It is the difference between the cost of the raw material and the price charged.

44. Adding Value A restaurant may buy three oranges for 10c (30c). A glass of fresh Oj is sold for $1. They value added 70c. NOTE: Adding value is NOT the same as profit!!!!

46. Activity How might packaging a product add value? How might creating a ‘brand’ add value? Explain your answer. • Skill: A01 - knowledge & Understanding

47. Activity Points to consider: Building a brand – a reputation for quality, value etc that customers are prepared to pay for.  Nike trainers sell for much more than other shoes, even though the production costs per pair are probably pretty similar! The key benefits to a business of adding value include: • - Charging a higher price
- Creating a point of difference from the competition
- Protecting from competitors trying to steal customers by charging lower prices Play: http://www.tutor2u.net/blog/index.php/business-studies/comments/teaching-added-value-introducing-the-worlds-first-zero-star-hotel • Skill: A01 - knowledge & Understanding

48. p • Business add value, to make products more desirable and suitable for customers • Added value is NOT the same as profit.

49. What did I learn this lesson that I didn’t know before? • Which part of the lesson did I most enjoy? • Which part of the lesson could I use the most help with? • Which part of my achievements am I most proud of this lesson?

50. 1.1 Business Activity