IB Business Management Introduction to Business and Management

Learning Outcomes Describe how business activity combines human, physical and financial resources to create goods and services (AO2)

Task – 2 minutes (In Pairs) Can you come up with a definition for the term ‘business’ (No Googling!) Write your definitions on the board

60 Second Video – Business in a Nutshell

What Is a Business? A business can be defined as an organisation that uses resources to produce goods and services for customers who want or need them. They often do this in order to make a profit

What Does a Business Do? The Business INPUTS OUTPUTS The overall aim of most businesses is to spend less on their inputs than they earn from their outputs and make a PROFIT Processes

BUSINESS OUTPUTS – GOODS AND SERVICES

Goods and Services… What is the difference between a good and a service?

Goods Goods are tangible objects that can be used or consumed

Services Services are non tangible

The Goods/Service Continuum What does this diagram show? Make your own continuum

BUSINESS INPUTS – THE FACTORS OF PRODUCTION

The Factors of Production Factors of production are the INPUTS (resources) that a business uses to produce their goods/ services

Task Write a list of all of the inputs that go into producing …….

Task Watch the video… Snickers Unwrapped. Can you now add anything to your list

Good or Service Land Labour Capital Enterprise Profit Wages Rent Interest Factors of Production

Task Now you are aware of the factors of production is there anything else that you need to add to your list?

Which Factor Of Production?

Task Using the template Choose a product Make a diagram to show the different inputs that it requires. Include some images. Split into the 4 different factors of production

L Product Land Labour Capital Enterprise

Recap What is a business? What do businesses do? What is the difference between a need and a want? What is the difference between a good and a service? What are the four factors of production?