Higher Business Management

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

The business cycle Consumers have wants Consumers buy these goods and services Business sees these wants Business produces goods and services

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 is physical and mental effort. People who use mental effort include: People who use physical effort include: Labour • Accountants • Bank Managers • Teacher • Assembly workers, eg a car production line • A baker – mixing of ingredients to make bread and cakes

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.

Enterprise Enterprise means having an idea for a new business and taking risks with the other factors of production to make 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

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

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

TERTIARY SECTOR Offers services rather than goods • insurance • banking • education • hairdressing • tourism & leisure • armed forces

Higher Business Management