3. Learning Objectives
By the end of this lesson you should be able to:
1. Understand and explain the basic input-process-output
model of business activity.
2. Understand and apply the classification of business
activity by sector.
3. Understand and explain the benefits of added value to a
product or service and apply this to specific products/
services.
4. Discuss!
Discuss the images on
your table and answer
the questions….
You have 5 minutes!
LO1) Understand and explain the basic input-process-output model of business activity.
5. Business inputs and outputs
The carrots in the example have
gone through a process of turning
inputs into outputs.
Input – something that contributes
to the production of a product or
service
Output – something that occurs as
the results of business inputs.
LO1) Understand and explain the basic input-process-output model of business activity.
6. Do you know your products from
your services?
LO1) Understand and explain the basic input-process-output model of business activity.
7. Product or Service?
Product – a tangible good that is manufactured
or refined for sale.
E.g. – Car, CD, Food
Service – an intangible good that can be paid for
or experienced.
E.g. – Rail Travel, Haircut, Accountancy Service
LO1) Understand and explain the basic input-process-output model of business activity.
8. Identifying Business Sectors
You have 15 minutes to produce a
poster explaining one of the following
business sectors:
Primary
Secondary
Tertiary
Quaternary
You will to provide a description and
an example for your given sector.
Prepare to feedback....
LO2) Understand and apply the classification of business activity by sector.
9. The changing importance of business
sectors
The UK has seen a decline in the
primary and secondary sector
and expansion in the tertiary and
quaternary sectors – Why?
How are some primary sector
businesses adapting?
Farms now offer
accommodation, farm shops or
activity centres.
LO2) Understand and apply the classification of business activity by sector.
10. Added Value
Adding Value – is the difference in value between the price of
the finished product and the cost of raw materials.
Raw materials + processing = finished product/ service
Added value
Selling price - cost of raw materials = added value
LO3) Understand and explain the benefits of added value to a product or service and apply this
to specific products/ services.
11. A business can add value in a number
of ways
LO3) Understand and explain the benefits of added value to a product or service and apply this
to specific products/ services.
13. What are the benefits of a business of adding value?
Differentiation from the
SHARE
competitor.
Charging a higher price.
Reducing the sensitivity
of demand to changes in
PAIR
price.
Higher profit margins.
Targeting product or
THINK
service in andifferent
market segment.
LO3) Understand and explain the benefits of added value to a product or service and apply this
to specific products/ services.
14. Penelope’s
Read the case study based
on Penelope’s and answer
questions 1, 2, 3….
Question 3 – structure:
Definition
Explain and give
suggestions as to how
they could add value.
15. Homework
You have now completed
another chapter of Business:
Transforming resources into
goods and services.
To consolidate this learning
you need to produce a set of
detailed revision notes.
Due: Next Lesson
17. Re-cap Learning Objectives
You should now be able to:
1. Understand and explain the basic input-process-output
model of business activity.
2. Understand and apply the classification of business
activity by sector.
3. Understand and explain the benefits of added value to a
product or service and apply this to specific products/
services.
Notes de l'éditeur
Enterprise and entrepreneursGenerating and protecting business ideas
