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This website provides resources and information for the Business Studies class, including goal setting, syllabus comprehension, and understanding the nature and role of business.
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Housekeeping Contact: Sanija.hrncic2@det.nsw.edu.au W: http://preliminarybusinessstudies.weebly.com/ Google Classroom: ox8vmow Seating: Until further notice
Why are you here? Goal Setting and Aspirational learning • Crashing Icebergs • What is Business? • Syllabus, who? • Verbs, and other important words • Learning Maps – Map the Syllabus • Learning Contract – Roles, Rules and Responsibilities
Topic 1 Nature of business Chapter 1 Role of business
A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and/or services. Nature of a business
To provide goods and services to the community, businesses make use of inputs or raw materials. By combining inputs with equipment and human skill, businesses add value. Nature of a business (cont.)
Goods: Physical products that can be seen and felt (washing machine, car) Services: Something you cannot hold made to fill a need; an OUTPUT of the PRODUCTION Process that consist of performing an activity or task for a customer
The main reason for businesses to produce goods and services is to make a PROFIT Are there any other reasons? Profit = Revenue – Costs
Value adding is…. TRANSFORMATION Or, The enhancement a company gives its product or service before offering the product to customers.
Boost Juice: Lemons to Moolah http://www.boostjuice.com.au/
Needs vs. Wants Needs: Items consumers require to function Wants: Items that aren’t considered essential but are desired by consumers as it improves their quality of life
Profit Profit is essential if a business is to meet day-to-day expenses (such as production costs, wages, insurance, electricity and rent) and provide a return on the owners’ financial investment. The roles of business (cont.)
Wealth creation By increasing sales and developing strategies to promote brand awareness and sales, the management of a business hopes to increase the value of the organisation. This, in turn, will increase the value of the funds that owners have invested in the business. The roles of business (cont.)
Employment By utilising the labour of over 12 million Australians each year, businesses are able to offer the community a diverse range of goods and services. In return for their services, a business will pay a form of income to their workforce. This allows the workforce to spend part of its income on satisfying its needs and wants. The roles of business (cont.)
Innovation This is the process of improving the features of a product. Quality of life Business research and development has also contributed to a significant improvement in our quality of life. The roles of business (cont.)
Choice A primary function of business is to produce goods and services for consumers to satisfy their needs and wants. This, in turn, provides consumers with choice. Entrepreneurship and risks Entrepreneurs take risks by developing strategies for their ideas to come to fruition. The roles of business (cont.)
