Usually owned and run by a group of people - these may be partners, directors or shareholders
They employ between 50 and 250 people
May have branches and sell goods nationally
Examples of Medium-size businesses ...
Manufacturers of clothing, furniture
Car hire companies
Usually owned by a large number of people - the shareholders - and run on their behalf by directors
They employ more than 250 people
May produce and sell goods internationally
Examples of Large Businesses ...
Car manufacturers eg Ford, Nissan
Chainstores eg Marks & Spencers
Finance companies eg Bank of Scotland
Oil companies eg Esso
Ownership Businesses can also be classified according to who owns them ... THE PRIVATE SECTOR
Owned by one or more persons (sole traders, partners and shareholders)
Started in order to provide goods or services
They use private money from owners or lenders
Aim to make a profit
Examples include – McDonalds, BP, Florists, Newsagents etc
THE PUBLIC SECTOR
Nationalised industries, local authority services, schools and hospitals
Owned by the state
They use public money from taxes
Supply Public Services, eg Hospitals, Schools, Police, Armed Forces etc
THE VOLUNTARY SECTOR
Charities, youth clubs, golf clubs
Run by officials who may volunteer or be elected, and are often unpaid
They use money from donations, gifts and fund-raising
Type of Product Another category is based on what is made ...
This is the first stage of the production process where raw materials and natural resources are farmed or extracted from the land or sea.
Deals with manufacturing goods – turning the raw materials into finished products
“ white goods” manufacturers (including fridges, freezers, dishwashers etc)
(* Pronounced “tershary” - just means third)
Offers services rather than goods
tourism & leisure
All businesses and organisations have a number of things in common
Resources (including people)
Smaller businesses ...
May be quite informal , and may not have anything written down about Aims, Rules and Image. Information often passed on verbally .
Larger firms ...
Are more likely to be formal and have everything written out.
Your school is an organisation.
Fill in the blanks on Worksheet
What Businesses Do – worksheet 2
Now do the same for HMV
GOODS AND SERVICES
We all use hundreds of goods and services every day without thinking much about them ...
(unless we can’t get them, such as when the water goes off and we can’t fill the kettle or have a shower!)
Think about ...
What you did when you got up this morning –
and the goods or services which you used before you got to school
These might include cornflakes, bowl, spoon, milk, fridge, toothbrush, clothes, bus
On your worksheet What Businesses Do – worksheet 3 make a list of the goods and services you used this morning.
But these products don’t just appear by magic!
What happens to them before they reach you?
Goods go through many steps before they reach you, the consumer ...
For example, take a newspaper –
Life of a Newspaper
A tree was grown
It was cut down
It was transported to a mill where it was turned into pulp
The pulp was made into paper ...
The paper was transported to the printing works
The newspaper was transported to the shop ...
Where it was sold to you!
This is known as the
Chain of Production
Chain of Production The process of making goods, where raw materials are turned into final products. INPUTS Raw Materials (Money, Premises, People) PROCESS Manufacturing stages OUTPUTS Finished Goods (sold on to customers) At every stage in the production process, value is added, eg a house is worth more than the bricks and plaster it started out as.
Now choose ONE item that you used this morning. On Worksheet What Businesses Do – worksheet 4 write down all the steps it went through before reaching you.