Unit 1.2 - Why do businesses exist?

Lesson 1 – Learning intention – By the end of this lesson I will have an understanding of business enterprise

Why do businesses exist?

Enterprise

Profit

Charity

Public Service

Enterprise First thoughts –

Aircraft carrier – USS Enterprise Space shuttle enterprise Captain Kirks ship Any others?

Enterprise Is to create or develop an idea for a

business venture A business enterprise is undertaken by an

entrepreneur The willingness to take a risk and push an

idea for ward is enterprise

Entrepreneur’s Famous entrepreneur’s?

Richard Branson Bill Gates Steve Jobs Henry Ford Any others?

Skills and Qualities of entrepreneurs

Creative and energetic Enthusiastic Can use own initiative Risk taker Assertive personality Decision maker/problem solver

Classroom Enterprise Move into your assigned group – 1,2,3 or 4 As a group decide upon a business idea for

the class You will need to create a company name,

type of business and idea for the business to make money – as a group

Classroom Enterprise Once the groups are finished we will decide

as a class which idea to use going forward.

Our business Fashion retail store : Nothing

06/09/2010 LI – By the end of this lesson I will have an

understanding of stakeholders and the influence they hold over a business.

StakeholdersFrom a business point of view a stakeholder is someone who:

•Has an interest in an organisation

•Has an influence on an organisation

Stakeholders Stakeholders and shareholders are easily

confused. Remember: A shareholder is a financial investor in a

business A stakeholder is anyone with an interest or

influence in a business

Stakeholders

Stakeholders do not necessarily have a financial interest in an organisation

Can include employees, shareholders, volunteers, suppliers, customers, community members and local authorities

They may not all want the same thing or have the same ideas for the organisation

Stakeholders Think about a large company in

manufacturing – a Plc like Ford Stakeholders would include suppliers,

shareholders, customers and directors. Can you think of another 3? Safety campaigners, employees, inland

revenue, environmental campaigners

Stakeholders Think about a large football club, again a

Plc. In groups discuss the following: Name 6 stakeholders for the club – for each

one state a possible interest and a possible influence the may have.

Stakeholders Shareholders – Interests include receiving

a share of the clubs profits (dividend) and seeing the club succeed. Influences include maximised profits through increased prices and reduced costs. Can vote at the annual general meeting (AGM) where shareholders and directors meet

Stakeholders Players (employees) – Interests include

winning games, increasing earnings, sponsorship deals and reputation. Influences the club in matters such as publicity, reputation and sponsorship

Stakeholders Directors – Interests include securing the

long term success of the club and maximise profits (they may well be shareholders). Influences will include the clubs direction and balancing profits with the needs of the club and its fans.

Stakeholders Media – interests will be based around providing

news and information to the clubs fans, earning money (normally from advertising). Influences are far reaching as they can actually influence the popularity of the sport itself through television through to funding through buying rights to show games. Media coverage can also influence reputation.

Stakeholders Local residents – Interests may be social costs of

the stadium itself – parking, crowds, bad behaviour, litter etc. Local business such as pubs and cafés may benefit from the passing trade and community sports projects may also benefit. Influences may include complaints about any of the above and attendance at matches

Stakeholders Fans – Interests will include matches,

stadium condition, management and players. Many fans are also shareholders. Influences will include fan associations and financial input into the club through ticket and merchandise sales.

Stakeholders What are the stakeholders of the classroom

business – the fashion store “nothing”? Customers, employees, bank and suppliers Fashion boutique, 3 staff, targets 18-25 yr

olds,

07/09/2010 Using the classroom business “nothing” as an

example create a presentation to secure investment for the shop. Remember to think about the stakeholders of the business as you do so.

The presentation should last for about 2-3 minutes with time for a few questions at the end. The presentation will be made to the class and the winning group will be awarded a prize in the following lesson.