Business Studies
Business Studies textbook
Why start a business? Very simply all businesses aim to make money. However, HOW to make money is more complex and it starts with why businesses are created in the first place.
Complete the economic problem challenge and make your decisions. Compare to others in the class. What are the advantages and disadvantages of your choices?
Now watch this video. What are the three key decisions highlighted in the video?
Why do we need to make these decisions?....so what IS
'The Economic Problem'? Write your own definition then use pages 2 and 3 of the text book to develop any further details.
(If you find any videos blocked then download the following video downloader, open the video in youtube then copy the URL to the 4K Video Downloader programme. If you are in boarding you can also use a mobile hotspot)
Think back to the first challenge on the economic problem. What did you gain from your choices? But what did you lose out on when you made your choices? This is OPPORTUNITY COST...complete this Word document about what these are.
Then, watch the video clip. Explain how this shows opportunity cost can be applied to business.
Once a decision is made to set up a business, the basic economic factors that influence it are those of demand and supply. Read through each pdf and then complete each 'Economics in Practice' section. Look at the powerpoint to consolidate your knowledge and then answer question 5 on the last slide.
However life and opportunities are constantly changing and so business is also constantly changing. The demand and supply curves can move! Work through this powerpoint to see how..then look at the pdf pages to understand what might cause movement, trying some of the questions...
NOW...have a go at these case studies to check your understanding of some of the concepts you have learned.
EXTRA: Research a product. Choose your own or choose from electric guitars, mobile phones, cigarettes, bread. Produce your own article for 'Teaching Economics' magazine to discuss and demonstrate the concepts learned. Explain how opportunity cost can be linked to your product, use diagrams to show demand and supply and to show and discuss causes of movements in these curves for your chosen product. Include TWO references of research. 20 marks
16-20: You have at least two references and accurately explain and link at least 3 of opportunity cost, demand, supply, causes of movement
12-15: You have at least two references. You explain at least three of opportunity cost, demand, supply, causes of movement but links may not be fully clear.
9-11: You have one reference and/ or you explain 2 of opportunity cost, demand, supply, causes of movement with brief links.
5-8: You have a breif overview of a product without reference but knowledge and understanding of one or two concepts is evident.
SO...now we go right back the start...businesses want to make money. Read pages 7 and 8 of the text book and define added value, then have a go at the Rakesh's Bakery case study. SO we are ready to set up a business.....but what kind and in what sector?..........
1) Understanding business activity
2) The classification of business
There are many different types of business and they can be classified (put into groups) depending on what they do. Look at this picture in the Word document......
Think about all of the procedures that would go into making this product. THEN, how might these be classified into THREE groups?
NOW look at the powerpoint. Make notes and create a chain of production for the mars bar.
HOWEVER...watch this video..what do you notice?
Support your knowledge...read pages 11 and 12 in the text book and complete activity 2.1. Then read pages 13 and 14 and complete activities 2.2 and 2.3
NOW choose one country to research and analyse the development of its industry. You will need to show the country on a map, discuss the key industries and the sectors they are in, explain how and why the emphasis on sectors may have changed over time. Include data, graphs, pictures and / or articles. There is a sample layout here.....
Businesses have to operate within the type of economy their country functions under. There are different types of economy. Different countries and societies have tried to solve the economic problem and developed their economies in different ways. For example between 1945 and 1991 the USA and Soviet Union (Russia and other Eastern countries) had very different ideas about how to run the sectors of the economy. Watch these two videos and identify the differences....
SO...two very different ways of solving the economic problem, with effects on businesses working under them. There are different types of economy in between these two extremes. Download the powerpoint here and look at the five named economy types on the first slide. Copy and paste the explanations on the second slide, under the title you think it belongs (hint: the explanations are mixed up but each row does belong to the corresponding row on slide one)
NOW...read the rest of pages 15-18 and complete the activities to ensure full understanding of this section.
3) Types of business organisation
Within each business sector there are many types of business organisation. Have a look at this powerpoint and Word document for an overview, before reading pages 35 - 38 and completing Activity 4.1 about sole traders and partnerships.
Read pages 39-42. What does 'Limited' mean in the context of business? Complete the Activity 4.2 on page 42.
Now....try the 'Sweet Opportunities' case studies to decide what type of business organisation suits these scenarios...
Read page 42 - 45. Explain what a shareholder is and why a company might decide to have shareholders.
Read pages 46 - 49 to be aware of other types of business organisation. Using one example explain the idea behind a public sector organisation. Then do the assessed Franchise research project on the powerpoint (watch the video for one example of franchising).....
A Stakeholder is any person or group with an interest in the business. Look at this chart and see if you can fill it in.
Look at this news article about fracking before trying out the stakeholder role play. Finally complete the Stakeholder case study.
4) Entrepreneurs! Business success and failure
All businesses need a leader. Watch this video clip, everyone in this clip is an entrepreneur...so after watching the clip what is an entrepreneur?
Look at this powerpoint to establish what an entrepreneur is...then complete the task. How would you do as an entrepreneur?..
Entrepreneurs have to make decisions. Work through this planning and decision making exercise.
In order to put these decisions in place entrepreneurs need a leadership style, but which are most effective? Try the leadership styles situations after looking at the powerpoint.
Develop your knowledge...read pages 20 to 25 of the text book and complete Activities 3.1 and 3.2.
But as an entrepreneur you will probably have workers. Will they work as hard as you? How can you motivate them? Read pages 64 to 68 in the text book and try Activities 6.1, 6.2 and 6.3.
Watch this video clip about the development of 'Nike'. What entrepreneurial traits did the founders have? (note also the changes in type of business organisation!)...NOW research another entrepreneur (Amazon, Starbucks, Nestlé, Coca-Cola for example) and write up an explanation of the developement of the business, showing points where their decisions led to business growth (look at the ppt for an example)
BUT...not all businesses are successful. Note down why this is from pages 32 to 33 in the text book. Look at the two case studies, explaining why these businesses failed or are facing problems.
REVISION......Try the case study on page 62 of the text book to check knowledge form the previous topics. If there is time you might then get to play the entrepreneur game as an introduction to the next topic.....
5) Production costs and revenue
Businesses have to convert resources into goods and services. This is production, for which there are costs. Businesses hope to create revenue from the sale of their products. Think back to the Mars Bar picture in Section 2 'The Classification of Business'. All of the processes that went into making that can also be categorised into FOUR 'Factors of Production'.
Read pages 222 to 223 and watch the 'How do airports make money?' film. Then work through the pdf exercises here....
Then Activity 18.3 page 224
How can businesses lower their costs? Perhaps with Economies of Scale. Look at pages 225 to 226 and try Activity 18.4 before making some notes.
How do businesses know if they will make money? Work through the pages and activities pages 227 to 232 and use some of the information and answers to create a presentation on break-even anaylsis
Try the Nike case study, bringing in knowledge from this section and previous sections
Now try your hand at making a profit with this Hotel Builder scenario...
7) World business and trade
If businesses can expand into trading across the world then they are on course for huge profits. But how easy is this and what are the issues? Play this International Trade Game to discover some of them...
International trade is not a recent development. Look at these maps to stimulate discussion about trade and what the word 'Globalisation' might mean.
But how beneficial is word trade? Watch this video and complete the question sheet to find out. Make sure you understand the definitions and arguments over free trade and protection..
Play the Trade Barriers game and discuss why countries might prefer free trade or protection.
Some businesses have recognised the responsibility of global trade, and also the potential profits through fair trade. Read the information and complete the 'Living with Coffee' work.
....and now the world's interconnectivity has brought about globalisation (although thinking back, is it really new?) Complete the questions while watching the video...
NOW..try this exam case study on the Oil industry, bringing in knowledge from previous sections, before finishing off your business studies section with a poster or presentation for your globalisation project.
6) Product promotion and advertising
Complete advertising work role play from the powerpoint after looking at examples. Use text book section 3 and develop marketing strategies. Case study on marketing
Read page 131 and do Activity 10.1 on the roles in the marketing department.
Read page 132 about the role of marketing and complete the Pepsi case study.
Read pages 135 to 138 to understand market segmentation
But what price to set? Complete this Price Elasticity booklet...
How important is market research? Read pages 143 to 146 and complete Activity 11.2
How is market research conducted? Read pages 152 to 154 and complete Activities 11.6 and 11.7, carrying out the survey in school imagining a new snack shop opening in school.
Brand image pages 161 to 163 and activities.
Advertising pages 176-180 and Activities 14.2 and 14.3 ....add pages on affects of demand and then complete advertising Word work
Complete the Volkswagen case study after looking at sponsorship.
After a talk from the school marketing department, form a team to rebrand the school as a business, conducting market research, creating a new brand image and advertising.