<1.1 WHAT IS A BUSINESS?> 

• The PRIMARY GOAL of a business is to MEET CUSTOMER'S NEEDS, in return for PROFITS.

• OPTION 1 GRAPHIC: Using ChatGPT, create a prompt that will ask how a well-known company of your choice uses the four factors of production to meet its customers need, then using the text create graphic like the one above....or

• OPTION 2 VIDEO: After generating the ChatGPT output, go to https://invideo.io/, or VEED.io, register and then go to 'Create AI video', and in the prompt box ask it to create a video that shows how your well-known company uses the four factors of production to meet its customers need, and to use the content of your ChatGPT output as a guide. This is exactly how I made the video above, amazing!!

• HUMAN RESOURCE (HR) MANAGEMENT IDENTIFIES THE WORKFORCE NEEDS of the business. Then it RECRUITS, SELECTS and TRAINS appropriate individuals, and is RESPONSIBLE FOR MUCH OF THE 'ON-BOARDING' PROCESS. It also DRAWS UP CONTRACTS of employment as well as HANDLES EMPLOYEE COMPLAINTS & DISPUTES amongst many other responsibilities.

• FINANCE & ACCOUNTS is responsible for MONITORING THE FLOW OF FINANCE INTO AND OUT OF THE BUSINESS, as well as KEEPING and ANALYSING ACCOUNTS and PROVIDING FINANCIAL INFORMATION to both senior management and other departments. 

• MARKETING is responsible for CONDUCTING MARKET RESEARCH and for analysing the results TO CORRECTLY IDENTIFY CUSTOMER WANTS. Once identified and agreed upon they will have to make important decisions concerning its PRICING, how and where to PROMOTE it, how to sell it and how to DISTRIBUTE it for sale.

• OPERATIONS MANAGEMENT is responsible for ENSURING ADEQUATE RESOURCES ARE AVAILABLE FOR PRODUCTION, MAINTAINING QUALITY PRODUCTION, and achieving high levels of production as EFFICIENTLY and LESS WASTEFUL as possible. 

• Go to the school website and find a member of staff who works for each of these departments, conduct a short interview and create mini job descriptions. 

• Q. What department do 'Teachers' belong to?

• OPTION 1 GRAPHIC: Using the image above as a guide create your own PRODUCTION CHAIN IMAGE for a company of your choice to illustrate the how the four sectors can all be linked.

• OPTION 2 VIDEO: Use ChatGPT and InVideo to create a video like the one above, showing how a business of your choice utilises the four economic sectors to deliver its product to the consumer.

• INDUSTRIALISATION refers to the period of social and economic change that transforms a human group FROM AN AGRARIAN (AGRICULTURAL) SOCIETY INTO AN INDUSTRIAL SOCIETY. Which is the case in most DEVELOPING COUNTRIES.

• WHY INDUSTRIALISE? Over time, as incomes have increased, the demand for agricultural goods has fallen relative to manufactured goods, whilst at the same time supply has significantly increased, resulting in average agricultural prices falling relative to manufactured goods, thus INCENTIVISING ECONOMIES TO DIVERSIFY AWAY FROM PRIMARY TO SECONDARY PRODUCTION.

GDP increases, leading to 

• Total national output (gross domestic product) increases and this improves average standards of living.

• The increasing output of goods can result in lower imports and higher exports of such products.

• The expansion of manufacturing businesses will result in more jobs being created.

• Expanding and profitable firms will pay more tax to the government.

• Value is added to the country’s output of raw materials, such as corn processed into breakfast cereals, rather than simply exporting these as basic, unprocessed products.

Problems include:

• The chance to work in manufacturing can encourage a huge movement of people from the countryside to the towns, which leads to housing and social problems. It may also result in depopulation of rural areas, and farmers may not be able to recruit enough workers.

• The expansion of manufacturing industries may make it difficult for secondary sector businesses to recruit and retain sufficient employees.

• Imports of raw materials and components are often needed, which increases the country’s import costs. Costs of imported materials vary with changes in the exchange rate.

• Pollution from factories will add to the country’s environmental problems.

• Much of the growth of manufacturing industry is due to the expansion of multinational companies, which may remit all of their profits to their home countries.

• DE-INDUSTRIALISATION refers to the period of social and economic change that transforms a human group FROM AN INDUSTRIAL (SECONDARY-BASED) SOCIETY INTO A SERVICE (TERTIARY-BASED) SOCIETY. Which is the case in most DEVELOPED COUNTRIES.

• This process of de-industrialisation occurs due to many reasons such as RISING INCOMES AMONGST THE INITIAL INDUSTRIALISTS have led to an INCREASE IN DEMAND FOR LUXURY SERVICES such as tourism, hotels, restaurants, financial services.

• Whilst at the same time GREATER INDUSTRIALISATION has led to MORE EFFICIENT and LOWER COST COMPETITION ENTERING THE MARKET making IMPORTED MANUFACTED GOODS CHEAPER and thus LEADING TO THE INEVITABLE DECLINE OF THE DOMESTIC MANUFACTURING SECTOR

• Use ChatGPT and InVideo to create a video like the one above, showing how a business of your choice utilises the four economic sectors to deliver its product to the consumer.

• Also create a youtube channel to host your videos.

• 17M.2.HL.TZ0.3b: Explain two characteristics of an intrapreneur at HS.

• 18M.2.SL.TZ0.4b.ii: Explain how the following can benefit HS: intrapreneurship.

• Why do you think Mr. Bounous might fancy giving up his cushy Econ job at TES and open his very own Bounomics tutoring centre? 

• Well it is likely to be one or a combination of the following: To GAIN INDEPENDENCE from the evil slave-drivers at TES, and answer to no-one, to EARN MORE MONEY (HAVE A BETTER STANDARD OF LIVING) in the belief that the income from the tutoring centre will be greater than that of a teacher, or simply due to his IMPENDING UNEMPLOYMENT as a result of his bosses reading this. 🤫

If it was easy to set up a successful business we would all be multimillionaires! There are many challenges that new entrepreneurs have to confront and overcome when setting up a business.

• • • • Challenge 1: Do I have the appropriate personal qualities?

      • Challenge 2: Is there a market for my product?

      • Challenge 3: Do I have sufficient capital?

      • Challenge 4: Where should I locate my business?

      • Challenge 5: How do I build a custiomer base?

      • Challenge 6: How do I compete effectively?

      • Challenge 7: Must I keep accurate business records?

      • Challenge 8: Do I have the necessary management skills?

      • Challenge 9: How do I deal with change?

• Firstly, pick a product of your choice and find its entrepreneur then enter the following prompt into ChatGPT.

• "Explain how [Insert your entrepreneur here] overcame the following list of challenges in order to introduce their [Insert your product name here] on to the market. Challenge 1: Do I have the appropriate personal qualities?, Challenge 2: Is there a market for my product?, Challenge 3: Do I have sufficient capital?, Challenge 4: Where should I locate my business?, Challenge 5: How do I build a customer base?, Challenge 6: How do I compete effectively?, Challenge 7: Must I keep accurate business records?, Challenge 8: Do I have the necessary management skills?, Challenge 9: How do I deal with change?"

• Finally, use response to  create a poster very similar to the Steve Jobs one above, for dsplay.

• 21M.2.SL.TZ0.5c: With reference to KT, explain two problems that a new business may face.

• 19M.2.SL.TZ0.1c: Explain one problem that Las Migas may experience as a new business.