1. ‘The only purpose of a business is to create customers’ Peter Drucker Thought for the day:

2. Business Mgt Use headings pg 17 http://business-and- management- aiss.wikispaces.com/ Create an e-folder:

3. 1.1 Nature of Business Activity: What is a Business Business Functions Primary, Secondary & Tertiary Cambridge Ch1 (pg 2  17) UNIT 1.1 LESSON 1

4. Get an A Knowledge Application & Analysis Evaluation A Grade Understand Define, Identify, Complete, Outline, describe, Classify Compare, Contrast, distinguish, prepare, construct, calculate, explain, comment Apply, Examine, Analyse, Interpret, Formulate. To what extent, Evaluate, discuss, justify, advise, recommend. Level 4 Level 3 Level 2 Level 1

5. Don’t preamble – just answer the question Don’t use bullets – unless for level one answers Do structure your answers Do show working out Do use your watch – keep an eye on time Do plan your answers Do use a ruler and make your diagrams big and neat Do know the difference between ‘describe’ and ‘explain’ Do use balance – always think of both sides to a point of view. Do look out for level 4 questions – make sure you evaluate. 10 Top Examination tips :

6. Understand what business activity involves Identify inputs, outputs & Processes of Business Identify & Explain the main business functions Identify & Explain the main sectors of industry Analyse the impact on business activity of changes in economic structure. (HL)

7. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. (HL) I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

8. Of this section…… Describe how business activity combines human, physical and financial resources to create goods and services.

9. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

10. Starter Activity  Be creative  Use key words Define a Business In your own words

11. 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’.

12. Internet, e-commerce – defining business is quite difficult. What is a Business?

13. It is also possible with a laptop and a secure internet connection to create an online business with no additional human resources and at very little or no cost. What is a Business?

14. Remember despite the impact of large multinational and global brands, the majority of businesses in both the developed and developing world are classed as small. What is a Business?

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

16. 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.

17. 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)

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

20. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

21. Have you a hard copy folder yet? What is Business? What is the difference between a good and a service? RECAP

22. A business is a decision-making organisation involved in the process of using inputs to produce goods and/or to provide services. What is a Business? Inputs ProcessesOutputs

23. Inputs – Raw materials, components, machinery, equipment and labour (Business use in the production process) Processes – turning the inputs into the provision of services or the manufacturing of goods. Output – the provision of final goods and services (Product). A product can refer to both goods and services. What makes a Business? Inputs ProcessesOutputs

24. Output – the provision of final goods and services (Product). A product can refer to both goods and services. Goods – Physical products (cars, computers, books and food) Services – intangible products such as haircut, a bus ride or a visit to a cinema. A business can provide both. Unit 1.1 looks at the nature of business – what business are, what they do and why they do it. What makes a Business? Outputs

25. Business Activity The nature of business activity varies from country to country and reflects the need and resources of the local environment. However, organisations are increasingly being operated in a way that considers the international perspective, cultural diversity and the need for international cooperation.

26. Input Inputs – Raw materials, components, machinery, equipment and labour (Business use in the production process) Whatever the location, a business uses a combination of inputs to make the outputs, or goods and services, it then creates and sells. The inputs or ‘Factors of Production’ are land, labour, capital (money & machinery), and enterprise or entrepreneurship.

27. Input ‘Factors of Production’ Are the resources needed by a buisness to produce goods or services. The four main inputs are: Land Labour Capital Enterprise

28. Factors of Production Business Activity involves the use of resources known as Factors of Production: Land Labour Capital Enterprise Write a brief description describing each…… Explained Pg 2 of your TEXT book

30. Output Output – the provision of final goods and services (Product). Output is dependent of a business are dependent on the quality and quantity of the inputs and how they are combined. Output can be finished goods ready for movement to wholesalers and shops, or they might be component parts that other manufacturer will need to make a product.

31. What is a Business?

32. A business is an organisation that is involved in the production of goods and/or services. Businesses exist to satisfy the needs and wants of people, organizations and government. Businesses and Purpose ‘The only purpose of a business is to create customers’ Peter Drucker

33. 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.

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

35. TOK Activity 1 The goods and services that we need are things necessary for survival, eg. Food and clothing. Whereas goods and services that we want, eg. TV and DVD player, may bring pleasure, they are not necessary to us to survive. We have discovered that people have unlimited wants: we always want more. But why do we keep wanting more and more?  Level 4: Discus

36. TOK Activity 2 But why do we keep wanting more and more? This might be because some wants are created for us by others. Choose five of the wants that you previously listed & Write down why you want them: e.g WANT: Bicycle REASON: My friend has one. Compare reasons with a friend & write down the most popular reasons. Individual  Level 4: Justify why your answer Pair Work  Level 2: Compare

37. TOK Activity 3 But why do we keep wanting more and more? Many wants are created by advertising. Advertisements use clever slogans and catch-phrases to try to persuade people to want particular goods and services. Try to write down four catch phrases or slogans used by advertisers. Now try these out on your friend to see if s/he can name the good or service that the advert is trying to create a want for.  Level 3: Apply

38. Business and their purpose Define needs and wants in your own word.

39. 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.

40. 3 min: Draw One thing you need & one thing you want One Good & one Service Plenary

42. Business and their purpose Needs are the basic necessitates that a person must have in order to survive e.g food, water, warmth, shelter and clothing. Wants are the desires people have i.e. things that they would like to have, such as a larger home, a new mobile phone or a foreign holiday. Wants are said to be infinite since people always want more than they need. Cute: http://www.youtube.com/watch?v=TWjkEZdPglI

43. What is Business? What is the difference between a good and a service? What is the difference between Needs and Wants? What is INPUT? What is OUTPUT? What are the Factors of production? RECAP

44. Aim of this section…… Explain the nature of business activity in each sector.

45. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

46. Business functions As a business gets larger, it becomes more important to have clearly defined functions (or processes), such as human resources, production, marketing and finance. These functions are likely to be carried out by specialist departments.

47. Key functions in business Operations Finance Human resources Marketing The main functional areas

48. Delivering key functions In a small business, will be done by individuals In a medium/large business, will be done by individuals working in functional areas or departments

49. Links between functions All functional areas must link together to achieve the overall aims and objectives This means cooperation and good communications Sales Financ e Marketing Admin IT CS Ops R & D HR

50. Human resources Includes the legal rights and responsibilities of employer and employees Health and safety Employee organisations and unions Training, development and promotion Working conditions Recruitment, retention and dismissal The main responsibilities of the human resources function

51. Finance Concerned with money and future plans Preparing accounts, eg invoices, management accounts, financial accounts for shareholders and Inland Revenue Preparing wages and salaries Obtaining capital and resources, eg money for expansion or to pay for resources such as equipment and materials.

52. Operations Concerned with the main business activities Known as the ‘Production function’ Obtains and converts resources of the business into goods/services, ie – Buildings and land – Equipment – People – Materials Ensure adequate resources to maintain production.

53. Marketing Both are concerned with customer needs. Sales Promotion Market research Activities include:

54. Functional variations No two businesses are the same! Functions will vary because of: Size and scale of business Activities of business Type(s) of customers Needs of customers Preferences of owner(s)

55. How the departments are interdependent Interaction between the different functional area is also important. Any part of a business’s operations is likely to involve more than one functional area. Therefore the areas have to communicate with each other and work together closely.

56. How the departments are interdependent Interaction between the different functional area is also important. Any part of a business’s operations is likely to involve more than one functional area. Therefore the areas have to communicate with each other and work together closely. Coca cola If coca cola designed a new product the departments would need to work together The research department and development department in developing and testing the product Finance department in costing the materials needed and the production process Human resource management in hiring the right workers Marketing in conducting market research to see if customers will buy the product – and at what price Finance in seeing if the business can afford to change that price Marketing in advertising the product Distribution in making sure that the product is delivered to outlets If coca cola was to buy a new piece of machinery: The production company would want it Finance would have to check if they have enough money The human resource department would have to teach the employees how to use the machinery.

57. A successful business will always try to ensure there is good team spirit and communication between each functional area. You also have to have the best, well-motivated and effectively managed people in all four area of business. To be a successful business the challenge is making the four areas work as one. Financ e Marketing Admin IT CS Ops R & D HR Sales

58. External Factors Businesses are also effected by external factors – those things out of their control. E.g. Social changes Technological developments Economic activities Environmental issues Government legislation and policies. Also external shocks: Oil crisis, health scare, natural disaster, war. ‘Its easy to open a business, but much more difficult to keep it open’ – Chinese proverb.

59. The Marketplace Market: a place or process whereby buyers (customers) and sellers (businesses) meet to trade. Shop, restaurant or cinema. Also non-physical form (E-commerce e.g internet, telephone) Customers: people or organisation that buy products Consumers: Ones who use the product (not necessary the same e.g parents (customers) paying for their children’s )consumers) birthday presents.

60. 1.What did I learn this lesson that I didn’t know before? 2.Which part of the lesson did I most enjoy? 3.Which part of the lesson could I use the most help with? 4.Which part of my achievements am I most proud of this lesson?

61. Aim of this section…… Describe the primary, secondary and tertiary classifications of business activities using local and national examples.

62. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

63. 63 Business activity –Industrial Sectors

64. What can you tell me about the pictures below?

66. What can you tell me about the picture below?

67. 67 What is ‘business activity’? The activities or operations carried out by a business, eg making goods, selling goods, providing a service. The main activity is the organisation’s core business activity.

68. 68 Main types of activity Producing raw goods, eg farmer, fisherman, forestry worker Manufacturing of goods, eg food producer, furniture manufacturer Selling of goods, eg supermarket, furniture store Client services, eg bank, hospital Other services, eg transport

69. 1.1.2: Classification of local and national firms into primary, secondary and tertiary sectors Changes

70. Aim of this section…… To understand what is meant by Primary, Secondary & Tertiary Sectors. Demonstrate an awareness of the changes that have taken place in these sectors within own country.

71. Primary Includes Businesses that produce/ extract Raw Materials Using natural resources. eg: farming, oil mining, coal mining.

72. Secondary (Manufacturing) Making goods from raw materials. Manufacturing & construction. Makers of furniture, chocolate, computers, mobile phones, cars manufacturers.

73. Secondary (Manufacturing) sector Business that manufacture, engineer or construct goods. Includes energy production. Overall, employment falling Traditional industries declining Telecommunications affected by world economic problems Some growth areas: computers and supplies, paper, pharmaceuticals, furniture, sports goods, many food products.

74. Tertiary sector – Providing a service to customers Wholesalers and Retailers Also over services which provide directly to the client– such as education, hairdressing, healthcare.

76. What sector are these organisations in and why?

77. Tertiary Sector Provide a service to business or industry. Sale of goods (retail and wholesale) Overall output and employment rising. Services (client and other) Overall output rising, especially in business services. Employment rising in many areas (eg health care) but falling in some areas because of increased automation (eg banks).

78. Linked together:

80. 80 Customer demand Changes because of: Tastes and preferences, eg Coke v Pepsi Lifestyle changes, eg working mums Population changes, eg more old people Seasonal factors, eg Christmas Value for money, eg bargains and discounts Income and wealth, eg winning the lottery Technological developments, eg DVD v video

81. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

82. Guess which colours represent which sectors & then… Match the countries Key Yellow Green Red – Which sectors? Primary/ Secondary/Tertiary Countries: Uganda, Spain, Thailand

84. 84 Examples of changes to business activities Consumer spending rising/falling Technological developments Value of goods and services produced All these affect the number of people employed in different activities.

86. p It is helpful to classify business activity into primary, secondary and tertiary sectors. There has been a global increase in the tertiary sector.

87. Fly swatter Teacher will read out a definition… Find the Key word to the definition… and Swat it!!

88. Find the Key word to the definition… and Swat it!! Businesses EntrepreneursOperations Input Factors of productionFinance Opportunity Cost PrimaryMarketing OutPut interrelationship of Functions Secondary Tertiary

89. Activity You will be given an object. Describe how it is linked to each sector.  Level 4: Discus

90. Quaternary Sector A four sector may be identified which includes organisations providing information services through ICT. Some commentators believe this is now applies to all other sectors, partially the teriary sector.

91. TargetLearning Objective (syllabus)Outcome Who?Keywords  Identify inputs, outputs and processes of a business. I can identify inputs, outputs and processes of a business. ALL Level 1  Businesses  Entrepreneurs  Factors of production  Opportunity Cost  Primary  Secondary  Tertiary  Describe how business activity combines human, physical and financial resources to create goods and services. Explain the role of the different business departments in overall business activity. Explain the nature of business activity in each sector. I can explain the role of the different business departments in overall business activity MOST Level 2  Analyse the impact on business activity of changes in economic structure. (HL) I can analyse the impact on business activity of changes in economic structure. SOME Level 3 & 4 1.1 Nature and Organisation of Business

92. Changes in Economic Structure Higher Level

93. Changes in Economic Structure Higher Level Page 5 – 6 Discuss industrialised (benefits & Problems) De industrialised (reason for and possible impact)

94. Sound Collage 1.Read your work 2.Pick a sentence, phrase or powerful word that best summarises your point. 3.Underline it. 4.Close eyes 5.When you feel a tap on your shoulder read out the phrase/word you have underlined. Finale – feedback the variety of messages you have heard.

95. Understand what business activity involves Identify inputs, outputs & Processes of Business Identify & Explain the main business functions Identify & Explain the main sectors of industry Analyse the impact on business activity of changes in economic structure. (HL)

96. Plenary Level 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?