Higher Business Management

Course Outline and Assessment

Course Content

3 units:• Business in Contemporary Society

– BICS– Internal Organisation– Information and ICT– Decision Making

• Marketing & Operations• Finance & Human Resource

Management

Assessment

• 3 Internal Assessments (60 minutes each)

• Final Exam 2 ½ hours– 100 marks – Section 1 – Case study– Section 2 – 2 from 5 questions (50 compulsory, 50 elective)

Business in Contemporary Society

Role of Business in society

Mr Heaney

What is a Business

• Business is concerned with meeting needs and wants of people and groups in society.

• An organisation set up to achieve objectives.

• May not have “profit” as an objective

• The output of business activity is the goods and services we want.

Needs and Wants

• What is the difference?

• Needs – Essential for us to stay alive – Water, Food, Shelter, Heat, Clothing

• Wants – Luxury items to make life more comfortable

Consumers buy these goods and services

Business sees these

wantsBusiness produces goods and services

Consumers have wants

The business cycle

Wealth Creation

• Businesses pay our wages and allows us to buy goods and services.

• The higher the number of businesses in a country the wealthier the citizens are.

• The wealth of a country is measured by how many goods and services it provides (GDP - Gross Domestic Product)

Goods and Services

• Output of business activity

• Good – Tangible, Durable and Non-durable

• Service – Intangible – cannot touch the service

Factors of Production

• Businesses use the Factors of Production in order to satisfy a customers needs and wants.

• LAND• LABOUR• CAPITAL• ENTERPRISE

Land

All the natural resources which the land provides for us:

Farmland – crops, animals

Buildings – land needed for housing, businesses

Water

Coal-mining to provide heat

oil/gas-refineries

Labour

• Accountants• Bank Managers• Teacher

Assembly workers, eg a car production

line A baker – mixing of ingredients to make bread and cakes

Labour is physical and mental effort.

People who use mental effort include:

People who use physical effort include:

Capital

– To purchase a business, buildings and equipment

– To buy tools needed for the job

– To buy raw materials to make the products

Capital includes the things that can be purchased with money to make and sell goods and services.

EnterpriseEnterprise means having anidea for a new business andtaking risks with the otherfactors of production tomake the business a success:

• The land• The labour• The capital

Task – 15 mins

• Think of 5 Scottish Entrepreneurs. Use the internet to help if you are stuck.

• Write a short piece about each explaining how they made their money and how they used the factors of production.

• We will share the information around the class

Sectors of Industry

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.

SECONDARY SECTORDeals with manufacturing goods – turning the raw materials into finished products

• car manufacturers• engineering• shipbuilding• “white goods” manufacturers (including

fridges, freezers, dishwashers etc)• housebuilding

TERTIARY SECTOR

Offers services rather than goods

• insurance• banking• education• hairdressing• tourism & leisure• armed forces