This document provides an overview of key concepts for Unit 1, Learning Outcome 1 of a Business Management course. It defines important business terms like goods, services, and the factors of production. It also describes the role of businesses in society, different business organizations and objectives, and the entrepreneur. Finally, it outlines the sectors of industrial activity and the cycle of business.

1. BM Unit 1 - LO1 1
Learning Intention
Understanding the
Role of Business in
Society
By the end of this lesson you will understand
the following terms:
• The terms goods/services/tangible/intangible
• The importance of Factors of Production
• The Cycle of Production
• The Sectors of Industrial Activity

2. Course Content
Three Units in this NQ Course = 3 NABs
 Unit 1 Business Enterprise
 LO 1 – Business in Contemporary Society
 LO 2 – Business Information and ICT
 LO 3 – Decision-Making in Business
 LO 4 – Internal Organisation
 Unit 2 Business Decision Areas I
 LO 5 - Operations
 LO 6 - Marketing
 Unit 3 Business Decision Areas II
 LO 7 - Human Resource Management
 LO 8 - Finance

3. Time Line
June – Oct
Unit 1 & NAB
Oct – Jan
Unit 2 & NAB
Jan – Feb
Unit 3 (HRM only)
Revision for Prelim
Feb - Mar
Unit 3 (Finance)
& NAB
April
Revision – Case Studies
Past Paper Questions
Command
Words

4. BM Unit 1 - LO1 4
UNIT 1 LO1 - BUSINESS IN
CONTEMPORARY SOCIETY
1. Role of Business in
Society
7. Factors affecting
Operation of Business 6. Methods of
Obtaining Finance
3. Business Objectives
4. Role of Enterprise
and the Entrepreneur
2. Types of Business
Organisations
5. Stakeholders
8. Business as a
Dynamic Activity
9. Changes in the
Business Environment
• Creation of wealth
• Production & consumption of goods
and services
• Satisfaction of wants
• Sectors of activity
• Self employed
• Private limited company
• Public limited company
• Voluntary organisation
• Charity
• Publicly-funded organisation
• Multinationals
• Profit maximisation
• Survival
• Sales maximisation
• Growth
• Social responsibility
• Managerial objectives
• Provision of a service
• Identifying business
opportunities
• Franchising
• Combining factors
of production
• Innovation
• Risk taking
• Shareholders
• Customers
• Employees
• Donors
• Management
• Government
• Suppliers
• Banks/lenders
• Tax Payers
• Community
• Internal & external factors
which cause change
• Changes in size of firm
• Need to respond to survive
• Internal & external
• Short & long term
• Share issue
• Loans / banks
• Local Enterprise
Companies (LECs)
• Government
• Finance & other
assistance available
• LECs, banks, local
authorities
• Subsidised premises,
grants, allowances, trade
fairs
• Methods of growth /
downsizing
• Changes in demand
• Demographics
• Competition
• Regional policies
•Labour market
• Privatisation
• EU * Technology
• Environment * ICT

5. BM Unit 1 - LO1 5
What is a ‘Business’?
 Any organisation set up to achieve a
set of objectives
Why are Businesses Important?
 They create wealth for a country
 They provide goods or services which
satisfy our wants and needs

6. BM Unit 1 - LO1 6
Goods and Services
 Goods are tangible (ie can be
touched) and services are intangible
 Services are things done for us e.g.
banking, hairdressing
 Goods sold to individuals are called
consumer goods
 Goods can be durable (last a long
period of time) and most services
and some goods are non-durable
(consumed over a short period)

7. BM Unit 1 - LO1 7
Description Goods (G) or
Service (S)
Durable (D) or
Non-Durable (N)
1. Volkswagen Golf GTI
2. Walkers Crisps
3. Hire of limo to S6 prom
4. The Herald Newspaper
5. Nail manicure
6. Dell Laptop
7. Kentucky Fried Chicken Meal
8. Higher Bus. Mgt. Lessons
9. Trip to the cinema
10. New shoes
G D
S N
G N
G N
S N
G D
G N
S N
S N
G D
Using the sheet issued to you complete the table:

8. BM Unit 1 - LO1 8
What is Business Activity?
 Using “resources” to produce
goods and services which people
require in order to satisfy their
“wants”.
 Any kind of activity that results
in the provision of goods and
services which satisfy human
“wants”.

9. BM Unit 1 - LO1 9
The Entrepreneur
 Develops a business idea – perhaps by
seeing a gap in market or desire to
innovate
 Acquires and then combines other
factors of production e.g. finds ways to
raise finance
 Undertakes most of the start-up decision
making
 Carries the risk of losing the money they
invested
Anita Roddick, Richard Branson,
James Dyson, Marth Lane Fox

10. BM Unit 1 - LO1 10
Factors of Production
 Land - raw materials, factory site
 Labour - people with required skills
 Capital - finance to buy equipment,
machinery, computers, etc
 Enterprise – the idea behind the
business, the person willing to take
a risk

11. BM Unit 1 - LO1 11
Cycle of Business
WANTS
IDENTIFICATION
PRODUCTION
CONSUMPTION
WANTS

12. BM Unit 1 - LO1 12
Sectors of Industrial Activity
PRIMARY
(Extractive)
Mining
Fishing
Farming
Oil
SECONDARY
(Making goods)
Manufacturing
Construction
Durables
Non-durables
TERTIARY
(Services)
Banking
Insurance
Tourism
Distribution
Third world
economies
Developing
economies
Fully developed
economies