Business activity 14 What is business activity The
Business activity . 14
What is ‘business activity’? · The activities or operations carried out by a business, eg making goods, selling goods, providing a service. · The main activity is the organisation’s core business activity. 1. 4 Business activity
Main types of activity Producing raw goods, eg farmer, fisherman, forestry worker Manufacturing of goods, eg food producer, furniture manufacturer Selling of goods, eg supermarket, furniture store Client services, eg bank, hospital Other services, eg transport 1. 4 Business activity
Successful Businesses All businesses need to have: · · · a good idea to base their business upon. · · Distributors to transport the products to it's customers. · Efficient and reliable staff to make the product or perform the service. · Market research to find out if there is a demand for the product, how large the market might be and who the competitors are. Planning to ensure that it is successful. Suppliers to buy the products and services they need to operate their business. Equipment and machinery in order to make the product or perform the service. 1. 4 Business activity
Trends in business activities · Firms are attracted towards profitable activities and away from unprofitable activities · Activities are profitable if customer demand for the product or service is increasing. 1. 4 Business activity
Customer demand Changes because of: · · · · Tastes and preferences, eg Coke v Pepsi Lifestyle changes, eg working mums Population changes, eg more old people Seasonal factors, eg Christmas Value for money, eg bargains and discounts Income and wealth, eg winning the lottery Technological developments, eg DVD v video 1. 4 Business activity
Examples of changes to business activities · Consumer spending rising/falling · Technological developments · Value of goods and services produced All these affect the number of people employed in different activities. 1. 4 Business activity
Sector trends 1 Primary sector (producing raw goods) · Overall, output increasing but employment falling. Secondary (Manufacturing) sector · Overall, employment falling · Traditional industries declining · Telecommunications affected by world economic problems · Some growth areas: computers and supplies, paper, pharmaceuticals, furniture, sports goods, many food products. 1. 4 Business activity
Sector trends 2 Tertiary Sector (services) Sale of goods (retail and wholesale) Overall output and employment rising. Services (client and other) Overall output rising, especially in business services. Employment rising in many areas (eg health care) but falling in some areas because of increased automation (eg banks). 1. 4 Business activity
Tasks Load your revision notes presentation and add a slide about the different sectors: – primary – Secondary – Tertiary (services) Use the Applied Business book (bottom shelf of book trolley), page 38 -39 to help. Return to slide 3 (page 37 in book), where the five different activities of businesses are listed. Find the website of an business for each of the five activities. Create a slide that explains what each business does for it’s core activity and add hyperlinks to your slide. Add notes about Identifying Trends (page 40) 1. 4 Business activity
- Slides: 10