ld-asia-pacific

Protecting Business Ideas 1)Identify the three methods businesses can use to protect ideas 2)Analyse the importance of protecting business ideas

KEY TERM Copyright – legal protection against copying for authors, composers and artists

PROTECTING A BUSINESS IDEA Copyright means material cannot be copied without permission from the owner of the copyright. Copyright lasts for 70 years after death of the creator for literary, musical, drama and artistic work Lasts for 50 years for sound and TV recordings Governed by Copyright, Designs and PATENTS Act ©

KEY TERM Patent –an official document granting the holder the right to be the only user or producer of a newly invented product or process for a specified period

PATENTS Apply for a patent to prevent other people copying the invention and then making and selling it Register with UK Intellectual Property Office (UK-IPO) Copyright Act gives patent holders right to use, make, licence or sell invention for up to 20 years after it is registered

PATENTS Issues to consider: Allows product or process to be developed further Invention becomes property of inventor Purchasing business with patent is attractive Can be a valuable asset for a business See page 20 for more

KEY TERM Trademark – signs, logos, symbols or words displayed on a company’s products or on its advertising, including sounds and music which distinguish its brands from competitors

TRADEMARKS Can be powerful marketing tools Helps customers recognise products Trademark must be registered at UK Intellectual Property Office When trademark is registered, company has exclusive rights to its use ®

Gill writes highly specialised training packages and sells them via her website Dave has invented an economical diesel engine A logo which displays a boy and girl holding hands for children's clothing Patent Copyright Trademark

Practice exercise Students to decide what levels of response are required for each question

Transforming resources into goods and services 1)Be able to define the four factors of production 2)Identify ways to improve the efficiency of factors of production 3)Analyse the importance of adding value

Factors of Production - Land All natural resources used for production Natural, mineral and sea resources – coal, oil, fish, livestock

Factors of Production - Labour Physical and mental effort involved in production People providing personal and commercial services – accountants, window cleaners People providing manual effort - extracting raw materials

Factors of Production - Capital Goods are made in order to produce other goods and services Machinery, computers, lorries etc

Factors of Production - Enterprise Act of bringing together other factors of production in order to create goods and services Carried out by entrepreneur who makes decisions and provides finance

Improving Efficiency Of Factors Of Production Examples of improving efficiency: Improving fertility of land – modern agricultural techniques enable farmers to achieve greater output Using renewable or recyclable resources – many factories now designed to minimise waste and improve energy

Improving Efficiency Of Factors Of Production Improvements in entrepreneurial skills and willingness to take risks – improve efficiency as factors of production are made into goods to meet people needs Combining factors of production in balanced way – helps business avoid problems that may arise if 1 factor is overused

Improving Efficiency Of Factors Of Production Extending overall scale of production – should lead to greater efficiency such as bulk buying and large scale production techniques

Nature Of Output Purpose of business is to produce goods or services profitably Business acquires inputs and converts them into outputs and ensures these reach customers Land (raw materials) is used up during production Capital equipment remains intact

Nature Of Output Other factors all remain active and ready to be used in further production Business must be careful not to overuse resources as may result in lower levels of efficiency in future Tertiary – transformation focuses directly on consumer – no physical product emerges at end of process

Classifying Outputs 3 ways to classify: Natural resources Semi finished and finished goods Services

Production In Primary Sector Final output is a natural resource Transformation process quite simple Seed – finished crop Extraction of natural resource e.g. gold Can be expensive e.g. oil

Production In Secondary Describes process of converting primary products into finished goods May act as inputs for business producing more complex end product e.g. Michelin purchases rubber to make tyres, tyres may be put on car made by Volkswagen

Production In Tertiary Services Commercial – where service is provided for another business e.g. delivery services, advertising Personal – where service is provided directly to individual e.g. hairdressing, plumbing

Production In Tertiary Some services can be both – banking, insurance Can lead to undesirable outputs – pollution, waste, unacceptable processes This is the largest sector in terms of GDP and employment

Measuring Output If Toyota produce a car that sells for £12,000 then value of its output is £12,000 Parts of the car may have been manufactured by other companies and sold to Toyota True value is the selling price minus the value of goods and services bought in Value Added

Key Terms Adding value – process of increasing worth of resources by modifying them Value added – sales revenue-the cost of bought on materials, components and services Unique selling point/proposition – feature of a product or service that allows it to be differentiated from other products

Adding Value Process of increasing worth of resources by modifying them Transformation process adds value Distribution and retailing add value as bring products to the customer USP Mix of design/function/image/service

Adding Value Need to add value to resources they possess McDonalds might minimise costs by using low cost inputs and transforming them in cost effective way Make high profits by achieving low levels of added value but sell large quantities as customers are attracted to low prices

Changes In Output In UK Financial and business services (accounting, advertising, estate agents) drive the UK economy See page 30 figures 3.1 and 3.2 If 1 sector in 1 region does well, the effect may be to reduce output and employment in others