1.3 transforming resources into goods and services - moodle

• 1. Do Now7 questions in 7 minutes!What have you learned?

2. Transforming Resources intoGoods and Services 3. Learning ObjectivesBy the end of this lesson you should be able to:1. Understand and explain the basic input-process-output model of business activity.2. Understand and apply the classification of business activity by sector.3. Understand and explain the benefits of added value to a product or service and apply this to specific products/ services. 4. Discuss!Discuss the images onyour table and answerthe questions.You have 5 minutes!LO1) Understand and explain the basic input-process-output model of business activity. 5. Business inputs and outputsThe carrots in the example havegone through a process of turninginputs into outputs.Input something that contributesto the production of a product orserviceOutput something that occurs asthe results of business inputs.LO1) Understand and explain the basic input-process-output model of business activity. 6. Do you know your products fromyour services?LO1) Understand and explain the basic input-process-output model of business activity. 7. Product or Service?Product a tangible good that is manufacturedor refined for sale.E.g. Car, CD, FoodService an intangible good that can be paid foror experienced.E.g. Rail Travel, Haircut, Accountancy ServiceLO1) Understand and explain the basic input-process-output model of business activity. 8. Identifying Business SectorsYou have 15 minutes to produce aposter explaining one of the followingbusiness sectors:PrimarySecondaryTertiaryQuaternaryYou will to provide a description andan example for your given sector.Prepare to feedback....LO2) Understand and apply the classification of business activity by sector. 9. The changing importance of businesssectors The UK has seen a decline in the primary and secondary sector and expansion in the tertiary and quaternary sectors Why? How are some primary sector businesses adapting? Farms now offer accommodation, farm shops or activity centres.LO2) Understand and apply the classification of business activity by sector. 10. Added Value Adding Value is the difference in value between the price of the finished product and the cost of raw materials. Raw materials + processing =finished product/ serviceAdded value Selling price -cost of raw materials =added valueLO3) Understand and explain the benefits of added value to a product or service and apply thisto specific products/ services. 11. A business can add value in a numberof waysLO3) Understand and explain the benefits of added value to a product or service and apply thisto specific products/ services. 12. What added has been used? 13. What are the benefits of a business of adding value?Differentiation from the SHAREcompetitor.Charging a higher price.Reducing the sensitivityof demand to changes inPAIRprice.Higher profit margins.Targeting product or THINKservice in andifferentmarket segment.LO3) Understand and explain the benefits of added value to a product or service and apply thisto specific products/ services. 14. PenelopesRead the case study basedon Penelopes and answerquestions 1, 2, 3.Question 3 structure:DefinitionExplain and givesuggestions as to howthey could add value. 15. HomeworkYou have now completedanother chapter of Business:Transforming resources intogoods and services.To consolidate this learningyou need to produce a set ofdetailed revision notes.Due: Next Lesson 16. Finally.Pass the ball.State one thing youhave learned during thelesson. 17. Re-cap Learning ObjectivesYou should now be able to:1. Understand and explain the basic input-process-output model of business activity.2. Understand and apply the classification of business activity by sector.3. Understand and explain the benefits of added value to a product or service and apply this to specific products/ services.