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WHAT DO BUSINESSES DO

Look out for the ? ... . This means you have toDO SOMETHING! . WHAT IS A BUSINESS?. A business is a type of organisationIt involves people and resourcesGoods or services are produced. What are Goods?. Items which you can see and touch and carry away with youExamples include chocolate, cl

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WHAT DO BUSINESSES DO

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    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

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