Business Activity Notes

What is a Business?

  • A business is an organization that provides or produces goods and services.
  • Business activity involves a business producing an output, which can be a good or a service.

Features of Business Activity

  • Output: A good or service is produced (e.g., cars).
  • Consumption: Goods and services are consumed by customers.
  • Resources: Resources are utilized (e.g., car parts).
  • Business Functions: Several business functions are carried out, such as marketing and production.
  • External Factors: External factors can affect businesses.
  • Profit Aim: Most businesses aim to make a profit.

Goods and Services

  • Businesses offer a wide range of goods and services.
    • Consumer Goods: Produced for consumers.
    • Producer Goods: Products sold by one business to another.

Needs vs. Wants

  • Businesses aim to satisfy people’s needs and wants to make profits.
  • Needs: Requirements for human survival (e.g., food, water, warmth, shelter).
  • Wants: People’s desires for goods and services (e.g., a burger, Coca-Cola, nice restaurants, more holidays, a bigger house).
  • Basic human needs are required to survive, while wants are unlimited.

Types of Organizations

  • Businesses exist to provide goods and services, but different organizations do so for different reasons.
    • Private Enterprise/Sector
    • Non-profit making organizations (social enterprise)
    • Public Sector

Business Stakeholders

  • Any individual or group that has an interest in the operation of a business is called a stakeholder.
  • Owners/Entrepreneurs:
    • Stakeholders because they have invested their own money into the business.
    • Entrepreneurs bear all risks while setting up a business.
  • Customers:
    • Buy the goods and services that businesses sell.
    • Can also be other businesses.
  • Financiers:
    • Lend money to the business and have a financial interest.
  • Government:
    • Collects taxes from businesses and employees to finance government spending.
  • Employees:
    • Depend on the business for their salary.
  • Managers:
    • Help run the business, lead teams, and control resources (time, people, finance).
  • Suppliers:
    • Provide raw materials to businesses.
    • Businesses want good quality resources at reasonable prices, and suppliers require quick payment and regular orders.
  • Local Community:
    • May benefit from job opportunities.
    • May complain if the business becomes too loud.

Activities

  • Investigate a local small business and produce a report explaining:
    • What the business does
    • Who their customers are
    • Who their stakeholders are
    • What their resources are
    • Why it might be successful
  • Use the internet (not AI) to find the answers to these questions
    • Find a definition for ‘Entrepreneur.’
    • Search for an example of a successful business started by a teenager.
    • Find a definition for the word ‘Profit.’
    • Find a local business online and identify what product or service they offer.
    • Find a popular brand and find out how long they have been in business.
    • Look up the difference between a product and a service.
    • How is revenue different from profit?
    • What is a market in business terms?
  • Create your own business in pairs, think of a business idea that could work in your local area.
    • What product or service would you offer?
    • Who would your customers be?
    • What makes your business unique?
    • What would you name your business?
    • How would you promote your business?
    • Try and find a gap in the market
    • Create a powerpoint presentation for your business to share with the class

Homework

  • Complete the multiple choice questions on page 9 of the textbook.
  • Read the case study (JCB) on page 10 and complete questions 1-6.
  • Homework must be completed for the next lesson.