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What Do Businesses Do?

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Musselburgh Grammar School
Musselburgh Grammar School
BusinessEconomy & Finance
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WHAT DO BUSINESSES DO? UNIT 1.1
Look out for the  ... This means you have to DO SOMETHING!
WHAT IS A BUSINESS? ,[object Object],[object Object],[object Object]
What are Goods? ,[object Object],[object Object],[object Object],What are Services? ,[object Object],[object Object]
Goods and Services satisfy our Needs and Wants Needs ... The things we must have in order to survive: ,[object Object],[object Object],[object Object],[object Object],Wants ... The things we would like to have (but don’t really need ) ,[object Object],[object Object],[object Object],[object Object]
It is human nature ,[object Object],[object Object],OK, I’ve got the flat and the Ford Focus, which I really wanted, but a house and a Porsche would be better ….
BUSINESS AIMS ,[object Object],… but there are some which do not - ,[object Object],[object Object]
[object Object],
CATEGORISING BUSINESSES Businesses may be put into categories based upon... ,[object Object],[object Object],[object Object],[object Object]
Size of Business Businesses may be described as Small , Medium or Large
SMALL ... ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examples of small businesses ...
MEDIUM ... ,[object Object],[object Object],[object Object],Examples of Medium-size businesses ... ,[object Object],[object Object],[object Object],[object Object]
LARGE ,[object Object],[object Object],[object Object],Examples of Large Businesses ... ,[object Object],[object Object],[object Object],[object Object]
Ownership Businesses can also be classified according to who owns them ... THE PRIVATE SECTOR ,[object Object],[object Object],[object Object],[object Object],[object Object]
THE PUBLIC SECTOR ,[object Object],[object Object],[object Object],[object Object],THE VOLUNTARY SECTOR ,[object Object],[object Object],[object Object]
Type of Product Another category is based on what is made ...
PRIMARY SECTOR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],This is the first stage of the production process where raw materials and natural resources are farmed or extracted from the land or sea.
SECONDARY SECTOR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TERTIARY* SECTOR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
All businesses and organisations have a number of things in common ,[object Object],[object Object],[object Object],[object Object],[object Object]
Smaller businesses ... ,[object Object]
Larger firms ... ,[object Object]
[object Object],[object Object],[object Object], ,[object Object]
GOODS AND SERVICES ,[object Object]
[object Object]
Think about ... ,[object Object],[object Object]
[object Object]
[object Object],
But these products don’t just appear by magic! ,[object Object]
Goods go through many steps before they reach you, the consumer ... ,[object Object]
Life of a Newspaper ,[object Object],[object Object],[object Object],[object Object]
Then ... ,[object Object]
[object Object]
[object Object],[object Object],[object Object]
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.
[object Object],
End of Unit

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What Do Businesses Do?

  • 1. WHAT DO BUSINESSES DO? UNIT 1.1
  • 2. Look out for the  ... This means you have to DO SOMETHING!
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  • 10. Size of Business Businesses may be described as Small , Medium or Large
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  • 16. Type of Product Another category is based on what is made ...
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  • 35. 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.
  • 36.