Business in the real world

• LessonUp
• Business Studies
• Upper Secondary (Key Stage 4)
• GCSE

Purpose of business 3.1.1

BQ: understand what a business is and the reasons for starting a business

Energiser: Think about a business you would want to create and why.

What is the purpose of a 'Business'?

Key Word: Purpose "the reason for which something is done or created"

Turn and talk: Discuss with your partner why somebody would start a business. 

List down some of the points that your partner has said

What is the purpose of a 'Business'?

Key word: Service "helping or doing work for someone"

Good "Products that are made or grown and intended for sale."

MWB:
1. Is a teacher a service or a good? 

2. Is produce from a farm a service or good?

What is the purpose of a 'Business'?

Key word: Service "helping or doing work for someone"

Good "Products that are made or grown and intended for sale."

Silent work task: Write the name of a business and what it provides then say if this is a service or a good. (2 minutes)

What is the purpose of a 'Business'?

Key word: NEED "absolutely necessary or highly important"

WANT "Not absolutely necessary or important"

As a business we need to be aware that people have needs and wants but first we have to know the difference in the two.

What is the purpose of a 'Business'?

Need "absolutely necessary or highly important"

Want "Not absolutely necessary or important"

Task: In your books Analyse the difference between wants and needs and use some examples to your answer. AO2 Apply the knowledge learnt (8 Minutes) 

To apply, you will need to state why.

What is the purpose of a 'Business'?

From this we can start to see that a business can help customers or providing what people may NEED or WANT.

Plenary

Answering the Big question: The purpose of a business is... 

Stuck? Think about what the business provides and can help customers with. 

Quiz

Energiser: A good is which of the following

1. Getting a hair cut
2. Car MOT
3. Baked beans
4. Getting a taxi home

Goods and services

BQ: understand the difference between good and services 

Remember to use your key words from last lesson they will be applied today

What are goods?

Key word: Tangible "clear and definite; real, able to  touch"

A good is something that is tangible

Using your MWB write an example of something that is tangible and considered a good.

What are services?

Key word: Intangible "unable to be touched; not having physical presence"

A service is something that is intangible

Using your MWB write an example of something that is tangible and considered a good.

What are goods and services?

To produce goods or provide services, businesses need to organise resources.

 An entrepreneur will do this by making decisions about what to produce or provide using the resources available to them.

What are goods and services?

Key word: Resources "a stock or supply of money, materials, staff, and other assets"

Without these a business is going to struggle to provide adequate goods or services to their customers. 

What are goods and services?

Task: Explain what impact a lack of resources might mean for a business. 

Try to think deeper than just "Goods and services will not be produced"

Plenary

Answering big question: What is the key difference between goods and services. 

Quiz

Energiser: A service is 

1. Untreatable
2. Unimaginable
3. Interactable
4. Intangible

Factors of production

BQ: understand the process to factors of production for building a business 

During this lesson you are going to plan the opening of a gym in Faversham

To do this this you must understand how we use; Land, Labour, Capital and enterprise to construct the finished product

What are factors of production?

Key word: Naturally occurring "Any, material, object, or process that exists or takes place without human intervention."

 

Land: We need to take from the land to be able to build / create our goods and services.  

Task: Many businesses need natural resources, what examples can you think of? List as many as you can down in your books

What are factors of production?

Key word: Labour "Human effort, skills and knowledge"

Businesses need a mixture of all these components. Too many of just one may mean that others areas which need skills or knowledge are lacking. 

What are factors of production?

Task: Using the knowledge just learnt apply this to the foundations of building the gym. (6 Minutes)

Sentence starter: The natural resources I will need are...

To fully staff the gym the labour required will be...

What are factors of production?

Key word: Capital "Equipment and money used to provide goods and services" 

If you have starting capital of £100,000 you need to remain under budget so you can finish the project. Proper planning is required and knowledge around the costs.

What are factors of production?

Key word: Enterprise "The willingness to take risks, make decisions and organise resources."

Task: 

This is your end point

Plenary?

Answer the big question: what is the process of building a company using factors of production?

Quiz

Energiser: Land, Enterprise, Capital. What is missing from the list?  

1. Liberal
2. Human resources
3. Labour
4. Work force

Sectors of the market

BQ: What are the 3 sectors of the market and what do they do?

Sectors of the market

Key word: Industry " the processing of raw materials and manufacturing of goods in factories"

Splitting the market up is important so we know exactly what a business does and where they operate to fulfil needs and wants. Without this it would be chaotic and might become messy for businesses trying to get into a market. 

Sectors of the market

Create a table in your books that looks like this. Leave enough room for writing in the boxes. 

Sector

function

Sectors of the market

Key word: Primary "happening first"

Just like using land as a factor of production this links closely to the primary sector. They both source something for the wider industries

Turn and talk: What could the link be between the primary sector and land factor? 

Sectors of the market

The secondary sector as the name suggests plays the second role within the chain and this is where the raw materials are put to use for further goods or services. Typically this is more of a manufacturing of goods sector for consumers.

When you go shopping or eat at a restaurant the food could have been caught or the material farmed. 

Sectors of the market

The Tertiary sector is predominantly services and education

Key word Tertiary "Meaning the third stage"

Watch this video: https://www.bing.com/videos/riverview/relatedvideo?&q=Tertiary+sector+explained+youtube&&mid=378E3B1ED2FF7DC1025B378E3B1ED2FF7DC1025B&mmscn=mtsc&aps=0&FORM=VRDGAR 

Task: Reflect on the video you have just watched and summarise what the tertiary sector does in the business world.

Sectors of the market

Your table should now be filled out and have the information needed to answer the big question today. 

Sector	function
Primary	Raw materials
Secodary	Manufacturing
Tertiary	Providing services

Plenary?

Answer the big question: What are the 3 sectors of the market and what do they do?

Extension: Explain how they link to support eachother.