1 Intro To Coursejw
- 2. The course 3 units Unit 1 – 3 topics (BICS; Decision Making; Info &IT) Unit 2 – 2 topics (marketing and operations) – 2 topics (finance and human resources) Plus Internal Organisation- only assessed externally
- 3. RESOURCES Textbooks Slides Your notes if you wish Additional notes from me KU question and case study booklets Past papers Me
- 4. The Role of Business in Contemporary Society
- 5. TOPICS IN THIS CHAPTER Role of Business in Society Types of businesses Objectives Entrepreneurs Stakeholders Finance and Advice Growth Changes in the business environment Impact of changes
- 6. TESTING Test at end of this chapter NAB before October week (on first 3 chapters)
- 7. WHAT IS A BUSINESS Business is concerned with meeting needs and wants of people and groups in society. An organisation set up to achieve objectives. May not have “profit” as an objective The output of business activity is the goods and services we want.
- 8. Wealth Creation Businesses pay our wages and allows us to buy goods and services. The higher the number of businesses in a country the wealthier the citizens are. The wealth of a country is measured by how many goods and services it provides (GDP)
- 9. Cycle of business WANTS- People in society have wants IDENTIFICATION OF WANTS - business recognise that these wants could be satisfied by the production of goods and serviced PRODUCTION - Businesses combine inputs to produce an output of the required good or service CONSUMPTION AND SATISFACTION - goods and services made available to consumers who are satisfied
- 10. Factors of production Businesses need resources in order to produce goods and services Land – Natural resources that the business might use Labour – staff employed in the organisations Capital – tools, equipment used Enterprise – the entrepreneur organises the other 3 factors of production
- 11. SECTORS OF INDUSTRIAL ACTIVITY PRIMARY agriculture and extractive industries SECONDARY manufacturing and construction TERTIARY service industries
- 12. Questions Chapter 1 pages 3 - 6 Topic – The role of business in society Explain the term “business”. (2) Explain what is meant by “wealth creation” (3) Describe the cycle of business. (1) Distinguish between goods and services. (1) Describe the factors of production (8) Distinguish between production and consumption of goods and services (1) Describe the 3 sectors of industrial activity. Give an example for each sector. (6) Explain the effects of “de-industrialisation” (3)
- 13. Solution Explain the effects of “de-industrialisation” (3) Answer: The main effects of de-industrialisation are: A significant decrease in manufacturing jobs and output. A Significant increase in jobs in the tertiary sector. A rise in imports of manufactured goods. Changes in educational/training provision to meet the needs of the tertiary sector.
- 14. EXAM STYLE QUESTION DESCRIBE THE ROLE OF BUSINESS IN SOCIETY, RELATING YOUR ANSWER TO: Wealth creation Satisfaction of wants (4)
- 15. SOLUTION Businesses produce goods and services to meet needs and wants. Consumers then buy the goods or services so that they obtain the things that they want. This creates wealth for the business organisation, their employees and their shareholders. Consumers then have money to spend from their wages and salaries and want other goods and services. This cycle continues.