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1.1 (1) - The Role of Business

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197 views4 pages

1.1 (1) - The Role of Business

Uploaded by

Peter Jun Park
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Business Organization and Environment – 1.

1: Introduction to Business Management

Syllabus area/s covered Depth of knowledge required


The role of business in combining human, physical and AO2 – Demonstrate application and analysis
financial resources to create goods and services.
Learning Objectives Essential question/s
KNOW – The main role of businesses.  What is the main role of a business?
UNDERSTAND – Businesses fulfill a number of  Aside from their main role, in what other ways do
different functions. businesses contribute to society?
DO – Become familiar with classroom routines and
lesson structure.

Defining ‘business’:

 With a partner create a definition of the term business.


____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

 Write down the definition provided to you. Which do you like better? Why?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

The role of business:

 Businesses preform a wide range of functions, however the most important function that they perform is the
production of goods and services.
 Each finished product we purchase has gone through a number of stages of production – sometimes by the
same business, sometimes by multiple businesses.
 At each stage of production value is added to a raw material in order to make a product.
 Business activity involves:
Business resources:

1. Inputs

The FOUR categories of resources used in producing goods and services are:

Labour/human resources Physical resources Financial resources Enterprise


(human skill and effort) (raw materials and infrastructure) (money) (the idea)
   
   
   

 How will the nature of the business determine the quality and quantity of the various
resources needed?
 Will the nature of inputs differ for a manufacturing business and a service based business?

2. Production – value adding

Value adding occurs when a transformation or production process occurs that means a product or service is
worth more than it was in its previous state.

Create an annotated diagram below showing the value added activities involved in the creation of…

 How is ‘value added’ by a business that sells services?


 How can a business use this stage to help a gain an advantage over its competitors?
3. Outputs

There are TWO categories of outputs:

Goods Services
(tangible products) (intangible benefits)
 
 
 
 

Goods can further be classified into THREE ways:

Raw materials Intermediate products Finished products


  
  
  

 Why are services referred to as ‘intangible’? Can goods provide intangible benefits as well?
 Can an intermediate product ever be a finished product? What examples can you give?

Other functions of business:

Aside from their main role of value adding, in what other ways do businesses contribute to society? In small
groups outline FOUR ways:

 ______________________________________________________________________________________
______________________________________________________________________________________

 ______________________________________________________________________________________
______________________________________________________________________________________

 ______________________________________________________________________________________
______________________________________________________________________________________

 ______________________________________________________________________________________
______________________________________________________________________________________

Review activity:
Complete the diagram below – you have only been given one clue!

___________________ Processes to add value ___________________

Plenary Activity – Conceptual Focus:

Key Concept Critical Thinking Question

“Businesses should simply focus on what they do best – that is, producing goods and
services. Everything else is the responsibility of government.”
Ethics
Do you agree or disagree with this statement? Justify your decision.

____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

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