S1 Business Knox Academy 1

By the end of the course you should know and understand:  The difference between needs and wants  The difference between goods and services  The different sectors of the economy  Enterprise and entrepreneurs  The business environment 2 Aims

3 Write down something that you really really want.

 A need is anything essential we must have to stay alive. We need food, drink, clothing and shelter.  A want is anything not so essential but something we would still like to have. We want a television, a foreign holiday or designer clothes. 4 Needs and Wants ClipClip2

Show the difference between needs and wants. You will do this using a comic strip. Software:  Comic Life 5 Task

Why do businesses exist? 6

Businesses exist to satisfy our needs and wants. They provide: 7

 A good (product) is something made by a business that you can touch or see.  Examples - a car, a football, a pair of boots.  A service is something you cannot hold or touch. Often a service allows one person to use skills they have to help others.  Examples - haircut, life insurance, cinema attendant. 8 Goods and Services

We will now see slides of various businesses. Do they provide a product or a service or both? 9 Task PowerPoint

Private Sector  Owned and run by private individuals/groups. Main aim is to make profit eg Tesco. Public Sector  Main aim is to provide a service to the public. Run on behalf of the Government eg East Lothian Council. Third Sector  Owned and run by private individuals with the purpose of helping a group or raising awareness for a cause eg Oxfam, Haddington Scouts 10 Sectors of Economy Task

 Choose one sector of the economy.  Create a poster showing real businesses and include: 1.Photo of the businesses/organisations 2.Sector of the economy they operate in 3.Whether they provide goods or services, or both 11 Group Task

12 Enterprise

Definition: a project or undertaking, especially a bold or complex one 13 What is enterprise? Think of one thing you have done, in school or out of school, that could be called enterprising. Share with the rest of the class.

An entrepreneur is someone who:  comes up with a good idea for a business  organises all the elements needed for the business to work  takes a risk by putting money and time into the business Can you think of any entrepreneurs? 14 Entrepreneurs

Scottish Entrepreneurs 15  Andrew Carnegie  Sir Arnold Clark  Michelle Mone  Sir Tom Hunter  Sir Tom Farmer  Sir Brian Souter  Duncan Bannatyne  steel tycoon  car maker  bras  sports clothing  car repairs  coach travel  gyms Do you know what the following entrepreneurs are famous for?

16 in person…

 In Scotland we have gained from the efforts of entrepreneurs and their talents.  The next step is to encourage and support the entrepreneurs of the future: YOU!!! Task You have been given £10. You have been challenged to make a profit in the next 2 weeks. 1.Jot down some ideas in your jotter of how to achieve this (you might want to work with a partner). 2.As a class, vote on the idea most likely to make a profit. 17 Future Entrepreneurs

Use the Internet to research an entrepreneur. Your entrepreneur can be taken from the previous list or can be an idea of your own. Find out 5 facts about your entrepreneur and note them in your jotter. You will be asked to report what you have found to the rest of the class. 18 Entrepreneur Task

You are now going to write a letter to your entrepreneur asking him/her to visit Knox Academy and talk to S1 pupils. Before you do that, you need to learn how to layout a letter and how to write a letter. We will start with designing a letterhead. 19 Entrepreneur Letter Task

 How we make things  Sectors of Industry  Location  The law and business  How products get to consumers  Marketing products 20 Business Environment

21 How we make things Lesson Starter

A business must decide how to make its products. This will depend on several factors:  Should it be made by machine or by hand?  How many items should be produced? Task Think of an item you have purchased in the last month. 1.How do you think it was made? 2.Is it different to other items or the same? 22 How we make things

 Capital Intensive  This is when we make a product using machines eg washing machines  Labour Intensive  This is when we make a product by hand eg birthday cake Write down more examples of capital and labour intensive products. 23 Capital/Labour Intensive Coca-Cola Cakes

Two of these items would normally be labour intensive and the other 3 would be capital intensive – which is which?  computers  designer wedding ring  presentation bouquet of flowers  bed sheets  Christmas tinsel 24 TASK 1

In recent times, machines have replaced workers to quite an extent in the production process. Look at the following jobs and suggest a machine or other piece of equipment which has – at least in part – replaced the need for a worker:  Typist  Factory worker  Checkout operator  Baker Can you think of any other workers who have been replaced (or reduced) by machines? 25 TASK 2

Look at the list of products below. Discuss with a partner the raw materials that go into the production process and how the raw materials could contribute to the product being of poor quality.  bread rolls  training shoes  shampoo  paint  vegetable soup  school blazer 26 TASK 3

27 NEXT PERIOD

People play a vital part in the production of goods and services. We divide all of our production into 3 groups:  Primary Sector – this is where we get all our natural resources, such as crops, fish, oil and coal.  Secondary Sector – this is where we produce all of our manufactured goods, such as computers, textiles and furniture.  Tertiary (or service) Sector – this is where services are produced, such as banking, insurance and dental care. 28 Sectors of Industry

TASK 1 29  Apple picker  Barber  Car factory worker  Day-care provider  Egg farmer  Fisherman  Garage mechanic  Hospital cleaner  Computer assembly  Primary  Tertiary  Secondary  Tertiary  Primary  Tertiary  Secondary Look at the jobs listed below. Which sector does each job belong in?

Many jobs that exist nowadays have been around for a long time eg 100 years ago, a waiter in a café would have served us, just like today. However, some jobs nowadays are quite recent eg website designers. Research some ‘jobs for the future’, and report back to the classjobs for the future 30 TASK 2 Vertical Farming

Where a business chooses to set up is very important. This is know as its location. eg a butcher relies on passing trade and for this reason may choose to rent or buy a shop on a busy high street. 31 Location

All businesses have to decide where to locate their: factory offices shops The location can affect the success or failure of a business. Success means:  higher sales  lower costs, hence  rising profits

TASK 1 33 Discuss with a partner reasons for the following businesses locating in their chosen place: BusinessLocation Shoe shopBusy high street Timber yardNear a forest HotelOn the shores of Loch Ness

Location Criteria  Availability of raw materials  Distance to the market  Availability of labour  Availability of land – greenfield/brownfield sites  Transport costs  Infrastructure - other facilities in an area which can influence location of industry  Government incentives eg grants

TASK 2 35 In pairs try the Newt’s Breweries task. This is a challenging task where you are trying to work out where to locate the brewery. You must cost each option to work out the cheapest site. The file can be found on the server.

 Laws are made by the government to protect both customers and employees.  Each business owner must learn and apply the law - it is not enough to say “I didn’t know” 36 The Law and Business

 Simon Reid opened a café on the bank of Loch Lomond and without realising it was breaking the law!  Simon had male/female toilets but not one suitable for disabled users (too marrow for wheelchair access)  Simon also broke the law relating to food storage… 37 Case Study – Simon’s Cafe

 On one occasion, Simon kept raw chicken in a fridge above a jacket potato filling.  The blood from the chicken dripped onto the shelf below.  What could the consequences have been? 38 Case Study – Simon’s Cafe

 When shopping in town, how often do we see cars wrongly parked in bays which are marked out for the use of disabled people?  A new law has been passed through the Scottish Parliament – the Disabled Parking Places Act – which means that anyone parked in an official disabled bay without the correct permit can now be fined £ Everyday Lives – Disabled Parking

 The Health and Safety at Work Act protects workers from practices which could make them ill or put them in danger.  What protection should be given in a noisy environment?  What examples of safe working practices can be seen around Knox Academy? 40 Task 1

 Using the file provided match up the legislation with the description of the legislation.  You should display this information in an attractive manner using your IT skills. This may include the use of auto-shapes if you choose.  Sale of Goods Act  Consumer Credit Act  Competition Act  Weights and Measures Act  Trade Descriptions Act  Supply of Goods and Services Act 41 Task 2

 Using your research skills find examples of where companies have broken the law – some examples are listed below of laws relating to employees:  Sale of Goods Act  Consumer Credit Act  Competition Act  Weights and Measures Act  Trade Descriptions Act  Supply of Goods and Services Act 42 Task 3

43 How products get to consumers

including Finance (Price) 44 Marketing Products