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Elements of business skills chapter 1 slides

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Elements of business skills chapter 1 slides

  1. 1. Introduction to Business Activities 1. Purpose 2. Types of Businesses 3. Jobs in Service industries 4. Business Resources 5. Unlimited Needs & Wants Vs Limited Resources 6. Managing Financial Resources - Calculation of Loan Interest 7. The Changing Business Environment 8. Nature of Competition - Direct vs Indirect
  2. 2. 1. PURPOSE OF BUSINESS ACTIVITIES How will this affect the people in the country & the country? - Provide Goods and Services to the people. - Provide Jobs for the people. - Contribute to the wealth of the country . 2 business terms you must know: NEEDS – These are goods and services that are necessary for SURVIVAL. Question: What are some basic needs of yours? WANTS – These are goods and services that are NOT necessary for survival but which we WISH to have.
  3. 3. 2. TYPES OF BUSINESSES GOODS-PRODUCING SERVICES <ul><li>The goods: </li></ul><ul><li>can be seen & touched </li></ul><ul><li>are produced with machines and/or labour </li></ul><ul><li>Examples: </li></ul><ul><li>The services: </li></ul><ul><li>CANNOT be seen & touched but can be EXPERIENCED. </li></ul><ul><li>are performed when sellers interact with customers. </li></ul><ul><li>Examples: </li></ul>
  4. 4. WHAT ABOUT THESE?
  5. 5. 3. Jobs in Service industries RETAIL TRAVEL AND TOURISM HOSPITALITY RECREATION FINANCE HEALTH CARE EDUCATION
  6. 6. 4. Business Resources (‘CELL’) C APITAL E NTERPRISE L AND L ABOUR <ul><li>Natural resources Eg: rivers, forests, minerals, oil etc. </li></ul><ul><li>You need land to grow crops / build factories to produce goods to meet customers’ needs and wants. </li></ul><ul><li>Buildings, equipment and machinery used to manufacture goods and services. </li></ul><ul><li>Use of business resources to produce goods and services, and earn profits. </li></ul><ul><li>Efforts of the people involved in the production of goods and services. Eg: Farmers, receptionists, tour guides, chefs, bus drivers, engineers, teachers form part of the labour force etc. </li></ul>
  7. 7. 5. Unlimited Needs & Wants Vs Limited Resources 6. Managing Financial Resources - Calculation of Loan Interest Needs & Wants > Resources Question: What is money needed for when you start a new business? Salary of Worker Machinery Office Furniture & Equipment Rent and Utilities Raw materials etc
  8. 8. Question: Where do you get the money when you want to start a new business? Personal Savings Loan from a Family members / friends Bank Loans Trade Credit from Suppliers
  9. 9. What is Trade Credit from Suppliers?  You get your goods first and pay your suppliers later. Question: Why does the entrepreneur not have enough $ to pay his suppliers? <ul><li>Customers do not settle their debts on time </li></ul><ul><li>Sales tend to go up or down according to the seasons of the year </li></ul>Calculate LOAN INTEREST Interest = $Amount borrowed x Interest rate/100 x Duration of loan Refer to Textbook Pg 8 and 9
  10. 10. 7. The Changing Business Environment “ PETS D G” P olitical and Legal E conomic T echnological S ocial D emographic G lobal
  11. 11. NATURE OF COMPETITION 1. DIRECT 2. INDIRECT

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