Chapter 1 People in Business

Business Overview

  • Date: 14th September 2020

Class Requirements

  • Textbook: 21st Century Business

  • Workbook: 21st Century Business

  • Materials Needed:

    • A4 Hardback Copy

    • Paper Folder

    • Calculator

    • Pens

Chapter 1: People in Business

  • Date: 14th September 2020

Defining 'Business'

  • A business is an organization set up to provide goods and services to customers.

  • Activity: Try to define the word "Business" in one sentence. Think-Pair-Share.

Motives for Business

  • Activity: Mini White Board Activity

  • Main motives include:

    • To make a profit.

    • To provide employment.

    • To increase market share.

    • To provide goods and services.

    • To export goods.

Understanding Stakeholders

  • Definition: Stakeholders are all those involved in or affected by a business's activities.

Activity: Identify Stakeholders

  • Post-it Time: List the people involved/affected by a business.

Types of Stakeholders

  • List of Stakeholders:

    • Entrepreneurs

    • Investors/Shareholders

    • Employees

    • Consumers

    • Suppliers

    • Producers

    • Managers

    • Employers

    • Government

    • Service Providers

    • Interest Groups

Internal vs External Stakeholders

  • Internal Stakeholders: Employees, Managers, Employers, Entrepreneur

  • External Stakeholders: Investors, Consumers, Suppliers, Government, Service Providers, Interest Groups

Stakeholder Grid

  • Activity involves classifying stakeholders into internal and external categories.

Roles of Key Stakeholders

  • Entrepreneur:

    • Identifies market gaps

    • Takes risks (personal & financial)

  • Investor:

    • Provides capital to entrepreneurs

    • Expects return on investment (ROI)

  • Employer:

    • Hires workers

  • Employee:

    • Works for employer in exchange for wages

  • Manager:

    • Runs the business & ensures objectives are met

    • Responsible for planning, organizing, and controlling

  • Producer:

    • Makes finished products for sale

    • Also known as manufacturers

  • Consumer:

    • Purchases goods/services for personal use

  • Supplier:

    • Provides stock for the business

  • Service Provider:

    • Offers support to entrepreneurs

  • Interest Groups:

    • Campaign for common goals and pressure decision-makers

Stakeholder Relationships

  • Co-Operative Relationships:

    • Parties have common objectives, creating a win-win scenario

Examples of Co-Operative Relationships

  1. Employee and Employer:

    • Fair Wage & Conditions: Employees gain from good pay; Employers benefit from increased productivity.

  2. Investor and Entrepreneur:

    • Transparent Financial Information: Investors see safety in investments; Managers gain easier finance access.

  3. Producer and Consumer:

    • Brand Loyalty: Quality goods create repeat purchases for consumers.

  4. Supplier and Purchasing Manager:

    • Quality & Timely Payment: Suppliers provide quality goods, Purchasing Manager pays fairly and on time.

Competitive Relationships

  • Definition: One business aims to outperform another, leading to rivalry.

  • Benefits for Consumers:

    • Improved quality

    • Better customer service

    • More product choices

    • Better value for money

Class Activities

  • Read textbook pages 23-24 and answer questions 1-3.

  • Complete Q6 on page 25.

  • Homework corrections for Q6 on page 25.

  • Think-Pair-Share: Discuss contracts.

Understanding Contracts

  • Definition: A contract is a legally binding agreement between two or more parties.

Different Types of Contracts

  • Activity: Listed throughout the class, engage students in identifying various contract types.