Presentation on theme: "IGCSE Business Studies"— Presentation transcript:
1IGCSE Business Studies Unit 1 – Business ActivityChapter 1: The Purpose of Business Activity
2In this unit you will learn……. The economic problem of unlimited wants and limited resourcesThe factors of productionThe development of economic activity and the use of specializationWhat is meant by a businessThe most common aims of businessThe different groups involved in business activity.
18Limited Resources Production 200 years ago 1234Joe cuts the woodHe assembles the tableJoe polishes the tableJoe delivers the table on a horse and cart
19Limited Resources Modern Day Production 12The wood for 20 tables is cut with a specialist machineCarpenters assemble the tables43A transport company collects the tables to deliver them to furniture retailersThe tables are finished in the polishing department
20Making the best use of limited resources Specialization / Division of LabourProduction ProcessDifferent tasks split upWorkers performs a task
21Specialization Division of Labour AdvantagesSpecialised task trainingIncreases efficiencyIncreases outputSave timeDisadvantagesBored workersPossible drops in efficiencyProduction stopped due to absence
22Why business activity is needed? Unlimited wants4 factors of productionResources in limited supply to make goods and servicesScarcityLimited resources – unlimited wantsChoiceOpportunity CostSpecialisationImproves efficient use of resources
23Aim of Businesses Combine factors of production Produce products satisfy peoples wants
24Classification of Products GoodsPhysical itemsTangibleTouch and seeServicesIntangible
25Business ActivityCombines scarce factors of production in order to produce good and servicesProduces those goods and services which are needed to satisfy the needs and wants of the populationEmploys people as worker and pays them wages to allow them to consume products made by other people
26Business Objectives Aim / Target to work towards Make a Profit To increase added valueTo expand the businessTo achieve business survivalTo provide a service
32Business Objectives Activity Get into groups and look at the text and prepare to explain to the rest of the class what your objective means.Group 1 – Profit and GrowthGroup 2 – Added ValueGroup 3 – Survival and providing a servicePrepare to give a presentation on your findings
38Explain and provide examples for the following……. The difference between wants and needs, with examplesScarce resourcesPrinciple of opportunity costsImportance of specialization in productionPurpose of business activityImportance of different groups in business activities.
39Assignment 1 IGSCE Business Studies The purpose of Business Activity Revision Questions