1. Business Activity Lesson Objectives By the end of the lesson students should be able to: Describe the main activities of a business – (E) Explain the difference between the primary, secondary and tertiary sector – (C) Analyse why there may be changes in different industries – (A)

2. What is Business activity? Business activity refers to the operations carried out by a particular organization – the type of goods it produces, the services it offers etc. Many organizations are involved in more than one activity, but the main one is known as its core business. Example – For Manchester United the core business is playing football, but they also sell football strips and merchandise. The core business is the activity on which a business depends but might not be the most profitable. Questions What is the business activity of a baker? What is the business activity of a mechanics?

4. Classifying Business Activity Complete the – Primary, Secondary and Tertiary Sector? Worksheet

6. Main types of activity The first step in the making of many products is the extraction of raw materials. Many of the products extracted in raw form are then used in the manufacturing process to produce consumer and capital goods 1.What are consumer goods? 2.What are capital goods?

7. Sales Sales activities include high-street and Internet retailers, as well as wholesalers who sell goods to shops. In the UK, do you think business activity in these areas is growing or in decline? Explain your answer.

8. Client services Businesses which provide a service directly to the client are known as client services. These include banks, educational establishments, personal trainers, solicitors and hairdressers. Business activities classed as ‘other services’ cover areas such as communications, transport and distribution.

9. Specialisation When a businesses focus is in one particular sector. By doing this a business can save money by looking at ways of reducing costs and therefore producing cheaper goods. Definition ‘Where a business concentrates on one particular activity.’

10. Which business activity?

11. Activity – Complete the task sheet Chain of production

12. Chain of Production Watch this short video on the chain of production used to make bread. http://www.youtube.com/watch?v=4fyWs4 8jSyI http://www.youtube.com/watch?v=4fyWs4 8jSyI

13. Added value As the raw materials are made into finished goods, the secondary business is ‘adding value’ to the raw material. When this product is sold the tertiary sector is again ‘adding value’. Definition ‘ When a business increases the value of a product.’

14. Classifying business activity We can also classify businesses according to whether the activity takes place in the public sector or private sector. What do you think the private and public sector are? Another way of classifying business activity is according to the type of business organisation and ownership – we will learn a lot more about this in the next couple of weeks!

15. Group Task In groups of 4-6 discuss the possible reasons for changes in the primary, secondary and tertiary industry in recent years. HINTS:  What has happened to the level of employment in each sector?  Is it cheaper to get it abroad?  What skills are needed?

16. Task - Changes in Business Activity The number of businesses involved in different activities constantly changes. This is because businesses are attracted towards profitability. Business activities change over time for various reasons, can you think of any?

17. Review - Which sector?

18. Group Task In groups of 2-4 create a poster about the 3 sectors of business activity. You should include a definition and examples for each sector. Ensure there is lots of colour and images to support your information.

19. Homework Complete the business activity worksheet answering all of the questions. You may either do this in your exercise book or on paper.

20. Plenary 1.List 2 things you have learnt in this topic. 2.Write one question about something else you would like to know about this topic.