what do businesses do€¦ · web viewwhat do businesses do . recap. a business organises people...

Duncanrig Secondary School

What do businesses do Recap

THINK-PAIR-SHARE

Copy and complete the table in your jotter. Identify as many businesses you can think of that produce goods and businesses that provide services.

Sell goods Provide services

SHOW ME BOARD

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A business organises people and resources to produce goods eg an Iphone and/or provide services eg a hairdresser. They do this to satisfy customer’s

needs and wants.

Many organisations sell goods or services in exchange for payment. However, others, such as charities provide their goods and services free of

charge to raise awareness for a specific cause.

Goods are tangible – this means they can be seen and handled.Services are intangible – this means they cannot be seen or handled.

Your teacher will now show you a video clip about what businesses is.

INDUSTRY

Primary

Secondary

Tertiary

Quaternary


Remembering skills – With a partner use the show me board to identify examples of what a person needs to survive at the left hand side and examples of what a person wants on the right hand side.Question 1Understanding skills - Write in your own words the importance of meeting the needs and wants of the customer.

Question 2Analysing skills – Describe the difference between needs and wants.

Sectors of IndustryThere are four Sectors of Industry. The four sectors are defined according to the type of good or service produced.

PrimaryBusinesses in the Primary sector also known as extraction industries as they extract natural resources from land, sea or air. These are known as raw materials. Examples include:• Farmers - wheat, meat, fruit • Oil drilling - oil, gas• Foresters - wood

Secondary Businesses in the Secondary sector, also known as manufacturing industries, buy raw materials from the Primary sector businesses and make goods with them.

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Examples include:• Car manufacturers - cars• Construction - houses • Factories - clothes

TertiaryBusinesses in the Tertiary sector, also known as the service sector, provide a service. Examples include:• Hairdressers - hair cut• Dentist - check up• Mechanic - change a tyre

Quaternary Businesses in the Quaternary sector provide information services. This sector is sometimes included with the Tertiary sector, as they are both service sectors. Examples include:• ICT - Microsoft• Consultancy - KPMG• Social Media - Twitter

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THINK-PAIR-SHARE

Primary Secondary Tertiary Quaternary

Nurse

Phone Manufacturer

Hewlett-Packard (HP)

Personal Trainer

Coal Miner

Cabinet Maker

Fisherman

Copy and complete the table in your jotter.

Question 3

Understanding skills - Briefly outline, in your own words, the 4 sectors of industry.

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Sectors of Economy

Private

Public

Third/Voluntary


THINK-PAD BRAINSTORMING Draw four columns in your jotter and write the headings Name of Business, Good/Service, Example and Sector of Industry (one in each column).

Individually brainstorm

Think of as many businesses in the local area and write the name of the business in the appropriate column

Identify whether they produce a good or provide a service Give an example of a good or a service that the business provides or produces

Once you have completed the individual task share your information with the group and add any businesses you didn’t think of to your jotter. Now…

Group brainstorm

Identify what Sector of Industry that business operates in (Primary, Secondary, Tertiary or Quaternary)

Types of Business Organisations

There are three Sectors of the Economy. Within each sector there are different types of businesses (small, medium and large) that provide a range of different goods and services.

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Private Sector

Businesses in the private sector include Sole Traders, Partnerships, Private Limited Companies and Public Limited Companies.

Businesses in the private sector all share the one main aim – to make as large a profit as possible (maximise profit). They can however, also aim to maximise market share or sales, expand/grow etc.

Public Sector

Businesses in the public sector include central government and local government.

The main purpose/aim of organisations in the public sector is to provide essential goods and services for the community or the country. This is to ensure all members of the public have equal access to essential services such as education, hospitals, police service etc. These organisations aim to ensure they provide a high quality good/service but they do not

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Private

Sole Traders

Partnerships

Private Limited

Companies

Public Limited Companies

PublicNational

Government

Local Government

Private Sector Businesses in East Kilbride Sole Trader – Diva’s Hair & Beauty

Partnership – Goldsmith & Hughes Solicitors

Private Limited – Arnold Clark

Public Limited – Marks & Spencer

Public Sector Businesses in the area National Government – UK

Parliament and Scottish Government

Local Government – South Lanarkshire Council


aim to make a profit, although they should aim to break-even (ie not spend any more money than they receive).

Third/Voluntary Sector

Businesses in the voluntary sector include non-profit making organisations and social enterprises.

They are not owned by any one person and are usually set up for the purpose of providing funds or a service to a particular group of people. Voluntary organisations are normally funded by donations, fund raising or, in the case of sports clubs, membership fees.

THINK-PAIR-SHARE

Copy and complete the table in your jotter.

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Third/Voluntary

Non-profit Making

Organisations

Social Enterprises

Voluntary Sector Businesses in East Kilbride Non-profit making organisations – The

East Kilbride Eagles

Social Enterprises – Delivered Next Day Personally

Private Public Third/Voluntary

NHS

Arnold Clark


Guides

Oxfam

Zucca’s


Question 4

Applying skills – Copy and complete the sentence with the correct fact about each sector of the economy.

1. Businesses in the third/voluntary sector include

a. central government and local government.

b. non-profit making organisations and social enterprises.

2. South Lanarkshire Council is an example of

a. a private sector business in the local area.

b. a public sector business in the local area.8

Your teacher will now show you a video clip about different types of businesses.

Your teacher will now show you a video clip about what motivates someone to

start their own business.

Objectives

To survive - stay in business Maximise

profits - make as

much profit as possible

Provision of a service - provide

people with a high quality

service

Satisfy Customers

- make customers

happy

Social Responsibility -

not harming the

environmentTo grow - gain more customers

Make good use

of taxpayers’

money

Increase the number of donations

and volunteers

Provide support and

promote awareness for worthy causes

Keep to an agreed budget


c. a third/voluntary sector business in the local area.

3. Businesses in the private sector all share the one main aim

a. which is to provide funds to a particular group of people.

b. which is to make as large a profit as possible (profit maximisation).

c. which is not to make a profit.2.3.

Business Objectives

An objective is something a business aims for – it’s a target or goal to be achieved.

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Maximise Profits Grow Survive

Satisfy Customer

s

Be socially responsible


Private Sector

Organisations in the private sector aim to:

Public Sector

Organisations in the public sector aim to:

Third/Voluntary Sector

Organisations in the third/voluntary sector aim to:

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Provide a service

Keep to an agreed budget

Make good use of

taxpayers’ money

Provide support and

promote awareness for worthy causes

Increase the number of donations

Increase the number of volunteers

Most important objective: To satisfy customers

Why? Because if customers were not satisfied with the product or service they would not

return to the business

Impact on the business: This would result in


SHOW ME BOARD

In your group use the show me board to identify the objective you believe is the most important to a Private Sector business. Explain why it is important to have this as a goal to be achieved and the impact on the business.

Example:

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Third/Voluntary Organisations

What is Social Enterprise

Social enterprises have a main social or environmental objective rather than to make profit for owners or shareholders but they are run in a business-like way.

Examples

At least half of the profit that they make must be re-invested into meeting their stated objective of the business. Social enterprises are incredibly diverse and creative, springing up in response to all kinds of social needs. The Government recognise the contribution they can make to social, economic and environmental wellbeing.

Advantages of Social Enterprises

Provides an opportunity for local people to gain employment Brings about a positive change to people and communities Profits are ploughed back into the organisation People have more ownership Gives the flexibility and freedom of being able to trade commercially whilst still

fulfilling social aims

Disadvantages of Social Enterprises

Have to compete in the commercial market and face the same challenges and risks common to all businesses

It will be expected to operate commercially, generating a proportion of its income from trading

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Social Bite, Glasgow – Case Study

We were inspired by the philosophy of a Nobel Peace Prize winning economist called Prof. Muhammad Yunus.

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Our founders Josh and Alice came across Prof. Yunus in 2011 when Josh started reading his book “Creating a World Without Poverty: Social Business and the Future of Capitalism”.In his book Yunus describes the idea of a ‘Social Business’, where he was creating businesses, but not for the traditional purpose of making money, but for solving social challenges. Josh and Alice became so inspired by this idea that they decided to fly to Bangladesh to meet with Yunus. They travelled to Dhaka in October 2011.In Bangladesh, they saw the various Social Businesses that Prof. Yunus had created first hand. They visited businesses that Yunus has set up that tackled social problems such as the financial exclusion of poor women, malnutrition of children and blindness of the poor. The efforts of this one man were literally changing the lives of tens of millions of people in his native Bangladesh. The experience Josh and Alice had in Bangladesh was life changing.They returned so inspired by Yunus’ vision of a broader economic system, where business could be about so much more than maximising profits, that they decided to sell their events business and risk everything they had to set up a Social Business. Social Bite was born.


Social Bite, Glasgow – Research Task

Evaluating and ICT skills

Now that you know a little about Social Bite, you are going to investigate the business and prepare a PowerPoint with a partner. Be prepared to present your findings to the class.

Create a six slide PowerPoint, include the information below:

Slide 1 – Business Name and logo (remember to include your names on the first slide)Slide 2 – A brief history of Social BiteSlide 3 - Explain how Social Bite is a sandwich shop with a differenceSlide 4 - What is the Social Bite dream?Slide 5 - Where do Social Bite’s profits go and what projects are they involved in?Slide 6 - Where is the nearest Social Bite?

To ensure your PowerPoint looks professional you must:

o Apply a design templateo Include appropriate graphicso Ensure the information is in your own wordso Proof read your PowerPoint before presenting to check for any

mistakes

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Your teacher will now show you a video clip about Social Bite.


Extension Task

Now that you know a little about Social Enterprises, you are going to investigate further and create a graffiti board on A3 paper.

Using the internet search for Social Enterprises in Scotland, on the graffiti board you must include:

The business name Their social or environmental aim Examples of recent projects the business has supported

Example

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