1. WHAT DO BUSINESSES DO? UNIT 1.1
2. Look out for the ? ... This means you have to
DO
SOMETHING!
3. WHAT IS A BUSINESS?
A business is a type of organisation
It involves people and resources
Goods or services are produced
4. What are Goods? Items which you can see and touch and carry away with you
Examples include chocolate, clothes or cars
Goods can be durable (longlasting eg cars) or non-durable (used up quickly eg chocolate)
5. Goods and Services satisfy our Needs and Wants
6. It is human nature Never to be satisfied with what we have - we always want more
Which is good news for business!
7. BUSINESS AIMS The main aim of most businesses or organisations is to sell their goods or services to make a profit ...
9. CATEGORISING BUSINESSES Businesses may be put into categories based upon...
10. Size of Business
11. SMALL ... Often owned and run by one person - a sole trader
Or they may be run as a partnership - between 2 and 20 people
They employ less than 50 people
They usually sell their good and services locally
12. MEDIUM ... Usually owned and run by a group of people - these may be partners, directors or shareholders
They employ between 50 and 250 people
May have branches and sell goods nationally
13. LARGE Usually owned by a large number of people - the shareholders - and run on their behalf by directors
They employ more than 250 people
May produce and sell goods internationally
14. Ownership
15. THE PUBLIC SECTOR Nationalised industries, local authority services, schools and hospitals
Owned by the state
They use public money from taxes
Supply Public Services, eg Hospitals, Schools, Police, Armed Forces etc
16. Type of Product
17. PRIMARY SECTOR oil
fishing
forestry
agriculture
quarrying
mining
18. SECONDARY SECTOR Deals with manufacturing goods turning the raw materials into finished products
car manufacturers
engineering
shipbuilding
white goods manufacturers (including fridges, freezers, dishwashers etc)
housebuilding
19. TERTIARY* SECTOR (* Pronounced tershary - just means third)
Offers services rather than goods
insurance
banking
education
hairdressing
tourism & leisure
armed forces
20. All businesses and organisations have a number of things in common
Name
Resources (including people)
Aims
Rules/procedures
Image
21. Smaller businesses ... May be quite informal, and may not have anything written down about Aims, Rules and Image. Information often passed on verbally.
22. Larger firms ... Are more likely to be formal and have everything written out.
23. ? Your school is an organisation.
Fill in the blanks on Worksheet
What Businesses Do worksheet 2
24. GOODS AND SERVICES
We all use hundreds of goods and services every day without thinking much about them ...
25. (unless we cant get them, such as when the water goes off and we cant fill the kettle or have a shower!)
26. Think about ... What you did when you got up this morning
and the goods or services which you used before you got to school
27. These might include cornflakes, bowl, spoon, milk, fridge, toothbrush, clothes, bus
28. ? On your worksheet What Businesses Do worksheet 3 make a list of the goods and services you used this morning.
29. But these products dont just appear by magic! What happens to them before they reach you?
30. Goods go through many steps before they reach you, the consumer ... For example, take a newspaper
31. Life of a Newspaper A tree was grown
It was cut down
It was transported to a mill where it was turned into pulp
The pulp was made into paper ...
32. Then ... The paper was transported to the printing works
33. The newspaper was transported to the shop ...
34.
Where it was sold to you!
This is known as the
Chain of Production
35. Chain of Production
36. ? Now choose ONE item that you used this morning. On Worksheet What Businesses Do worksheet 4 write down all the steps it went through before reaching you.
37. End of Unit
