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Role of a Business? Key Terms

Reviewing the PowerPoints

English business vocabulary Hidden PowerPoint slides contain vocabulary words

that can help you express your ideas Must know v Should know v Could know

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Cornell Notes Take notes using the Cornell method

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Business

A decision making organisation involved in the process of combining human, physical and financial resources to create goods and/or services.

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Resources

Refers to what goes into a production process

Three kinds of resources:

Human (workers, managers)

Physical (materials, tools, buildings)

Financial (money, credit, debt)Econ Kings and Queens… (Land, Labour, Capital and Enterprise)

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Production process

Resources are combined by businesses in a production processThe purpose of production is to create goods and services for consumption

I’ve been transformed into a more productive citizen by higher education!!

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What does the process look like?

Resourcese.g. Raw materials, components,machinery, equipment, labour

Goods and ServicesThe final product

PROCESSESTurning inputs into the provisionof services/manufacturing goods

ResourcesBeef, lettuce, cheese, pickles, bun, knife, worker, kitchen

PROCESSESSlicing bread, washing lettuce,cutting ingredients, making burger, wrapping sandwich

Goods and ServicesBeef sandwich

Task: Think of 3 goods. Draw a diagram for each detailing the above process.

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Role of a business

Businesses exist to satisfy the needs and wants of people, organizations and governments

What is the difference between a need and a want?(outline each in your workbook)

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Needs & Wants

Needs: basic necessities that a person must have in order to survive.Wants: things that people would like to have.

**A person’s wants will often exceed their needs. Further, a person will always want more than what they have.

TASK: Make a list your total needs. Outline how you can satisfy those needs, highlighting the role of business in satisfying needs. Finally, make a list of your top ten wants.

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Business Functions

A business process can be divided into different activities called functions.

BUSINESS

Human resources Finance and accounts Marketing Operations

• Hiring, de-hiring• Training• Enforcement of

rules and workplace regulations

• Finding the means to do business (debt, credit)

• Monitoring financial performance

• Educating customer• Developing

products/markets

• Work flow, i.e. how the work of the business is accomplished

Business functions

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Identify the business functions performed at: •Sharjah University Hospital

External Factors

Businesses can be affected by a variety of external factors.

External factors refer to the things that business does not have control over

External shock: unusual or unexpected things (e.g. Ebola outbreak, natural disaster, etc)

TASK: Using a table format, list as many external factors relative to a business that you can think of. Then, outline the potential effect that factor could have on the business.

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Industry sectors

Businesses producing similar or related products form an industry, e.g. Ford, BMW and Toyota are members of the auto industry.

AC Delco, Robert Bosch, Magna Int’l are member of the auto parts industry (a subset of the auto industry)

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Main economic sectors

Primary industries, e.g. agricultural products, mining and resource industries

Secondary (manufacturing) industries, e.g. auto makers, aircraft construction, home construction

Tertiary (service) industries, e.g. hotel and vacation services, tourism, engineering consulting, medical services

Quaternary (IT) industries, e.g. data recovery services, wireless providers, cloud computing

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Vocabulary - sector???

A sector is a part of a whole that shares similar characteristics within the sector, e.g. the auto industry consists of businesses involved in the construction of automobiles (but not hotels)

How many different sectors can you identify in the circle?

Ideally, sectors are exclusive and do not overlap. No member of the whole should be left out

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Is it correct to say a sector of pizza?Why or why not?

Can I say the cat sector of my chest of drawers?How is it ok? How is it not ok?

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