The document provides an overview of what businesses do and different types of businesses. It defines a business as an organization that involves people and resources to produce goods or services. Goods are tangible items that can be seen and touched, while services are intangible things done for others. The main aim of most businesses is to make a profit by satisfying human needs and wants. Businesses can be categorized by size, market, ownership, and products. The document also discusses the chain of production and how raw materials are transformed into finished goods that are sold to customers.

1. WHAT DO BUSINESSES DO? UNIT 1.1

2. Look out for the  ... This means you have to DO SOMETHING!

3. WHAT IS A BUSINESS? A business is a type of organisation It involves people and resources Goods or services are produced

4. What are Goods? Items which you can see and touch and carry away with you Examples include chocolate, clothes or cars Goods can be durable (longlasting – eg cars) or non-durable (used up quickly – eg chocolate) What are Services? Services are things that you might want someone to do for you but which you cannot touch – they are intangible. Examples of services include – doctors, dentists, lawyers, insurance companies etc

5. Goods and Services satisfy our Needs and Wants Needs ... The things we must have in order to survive: Water Food Shelter Clothing Wants ... The things we would like to have (but don’t really need ) Fashion clothes CDs Car Holiday

6. It is human nature Never to be satisfied with what we have - we always want more Which is good news for business! OK, I’ve got the flat and the Ford Focus, which I really wanted, but a house and a Porsche would be better ….

7. BUSINESS AIMS The main aim of most businesses or organisations is to sell their goods or services to make a profit ... … but there are some which do not - These are charities , which raise funds by a variety of means and use them to help the needy, or Organisations set up to provide a service to the public

8.  Answer the questions on Worksheet What Businesses Do – worksheet 1 

9. CATEGORISING BUSINESSES Businesses may be put into categories based upon... Size Market Ownership Product

10. Size of Business Businesses may be described as Small , Medium or Large

11. SMALL ... Often owned and run by one person - a sole trader Or they may be run as a partnership - between 2 and 20 people They employ less than 50 people They usually sell their good and services locally Opticians, solicitors, accountants Tradespeople - plumbers, electricians, hairdressers Small shops Examples of small businesses ...

12. MEDIUM ... 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 Theatres Insurance Companies

13. LARGE 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

14. 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

15. 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

16. Type of Product Another category is based on what is made ...

17. PRIMARY SECTOR oil fishing forestry agriculture quarrying mining This is the first stage of the production process where raw materials and natural resources are farmed or extracted from the land or sea.

18. SECONDARY SECTOR Deals with manufacturing goods – turning the raw materials into finished products car manufacturers engineering shipbuilding “ white goods” manufacturers (including fridges, freezers, dishwashers etc) housebuilding

19. TERTIARY* SECTOR (* Pronounced “tershary” - just means third) Offers services rather than goods insurance banking education hairdressing tourism & leisure armed forces

20. All businesses and organisations have a number of things in common Name Resources (including people) Aims Rules/procedures Image

21. Smaller businesses ... May be quite informal , and may not have anything written down about Aims, Rules and Image. Information often passed on verbally .

22. Larger firms ... Are more likely to be formal and have everything written out.

23.  Your school is an organisation. Fill in the blanks on Worksheet What Businesses Do – worksheet 2   Now do the same for HMV

24. GOODS AND SERVICES We all use hundreds of goods and services every day without thinking much about them ...

25. (unless we can’t get them, such as when the water goes off and we can’t fill the kettle or have a shower!)

26. Think about ... What you did when you got up this morning – and the goods or services which you used before you got to school

27. These might include cornflakes, bowl, spoon, milk, fridge, toothbrush, clothes, bus

28.  On your worksheet What Businesses Do – worksheet 3 make a list of the goods and services you used this morning. 

29. But these products don’t just appear by magic! What happens to them before they reach you?

30. Goods go through many steps before they reach you, the consumer ... For example, take a newspaper –

31. 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 ...

32. Then ... The paper was transported to the printing works

33. The newspaper was transported to the shop ...

34. Where it was sold to you! This is known as the Chain of Production

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.  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. 

37. End of Unit