Successful Learners, Confident Individuals, Effective Contributors, Responsible Citizens
St Roch’s Secondary
S1
Curriculum for Excellence
Course
Business Education and Computing
St Roch’s Secondary S1 Curriculum for Excellence Course
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Topic 1 - Needs and Wants
What is the difference between a Need and a Want?
A need is something we really need to survive
A want is something we would like to have – it is over and
above what we need to survive.
Remember – although you might say you need something – you probably actually just want
it!
Task 1 
Identify the following as either a need or a want. ()
Item
Need
Want
Chips
Strawberry Milkshake
Holiday
Secure/sheltered place to live
Designer Jacket
Clothes
Car
Basic Food such as bread
Fluids – water
Air
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Task 2 
Why do you think these needs are needs and not just wants?
Need
Why is it a need?
Wheat
Drinking Water
Weather Proof-Clothing
Lockable building, sheltered to keep
out bad weather
Task 3 
Write down five needs and wants you have had over the last week
Needs
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Wants
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How have needs and wants changed over time?
There are many items we use in our everyday lives which we think of as needs. However, in
years gone by this might not always have been the case.
As our society has been come richer, items that used be wants have become needs (maybe!)
Here are some examples:




Mobile Phones
Television
Washing Machines
Central Heating
In countries like Scotland, some people are still considered to be
poor. However, this poverty is called relative poverty. This is
different from being poor in countries such as African nations such
as Ethiopia. In a country such as Ethiopia many people still die of
starvation. In Scotland it is pretty unlikely that someone will die of
starvation but yet some people are considered to be relatively poor –
relative to other people in Scotland.
Nowadays it is considered that in countries with relative poverty, there is a tendency for
poorer families to eat much less healthily than wealthier families – they don’t actually
starve.
Task 4
The following countries experience either relative or actual poverty. Identify
which ones belong to each category.
Country
Actual Poverty
Relative Poverty
Somalia
France
Irish Republic
Malawi
Spain
Darfur
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Task 5 
Make a list of five things which are commonplace in today’s society which would not have
been around when your mum/dad/granny/grandpa were young.
Item
When was this invented/became
commonplace in people’s homes
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Topic 2 - Goods and Services
What are Goods?
Goods are something we can see and touch.
We buy goods from shops and other places.
We think of some goods as being needs such as water and wants such as muffin.
Here are some examples:




Mobile Phone
Desk
Water
Chocolate
Sometimes goods are made up from other goods. For example – Strawberry Jam is made up
from Strawberries, Sugar etc. Strawberries for example can be used to make yoghurts, milk
shakes etc.
Task 1 
These fruits/vegetables can be made into something else.
Fruit/Vegetable
Alternative Use
Potatoes
Raspberries
Peaches
Apples
Oranges
Onions
Tomatoes
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Task 2 
In the table provided list whether the goods are sold in packets, boxes, bottles, tins, jars or
no packaging at all (you can list more than one if you need to)
Goods
Description of how sold
Soup
Cereal
Mushrooms
Milk
Tomatoes
Cooked Meats
Task 3 
List three types of goods you think are made in Scotland.
Goods Made in Scotland
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What are Services?
We know that a good is something we can see and touch. Some companies provide services
– that means that they do something for us. We cannot see and touch them.
Here are some examples:





Hotel
Haircut
Bus journey
Car cleaning
Pop Concert
Many jobs in Scotland are within the service sector. These mainly consist of banking,
tourism and insurance. In the past many of Scotland’s jobs were made up from producing
goods such as Ships, Coal and Textiles but now these industries are virtually non existent.
However, there has even been a decline in the last few years in service industries such as
banking because of the present economic climate.
Task 4
Look at the descriptions of services shown below. Identify each service provided.
Description
Type of Service
I collect busy people’s crushed garments and
return them smooth and ready to wear.
I show visitors the sites in and around
Edinburgh.
I turn people’s untidy gardens into something
neat and tidy.
I give advice on how house’s should be designed
and built.
I make people’s fingernails attractive.
I fight fires and give advice on fire prevention.
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Task 5 
The workers below provide us with either goods or services. But who provides what? ()
Description
Goods
Service
Work in car factory
Waiter in restaurant
Hairdresser
Farmer
Pilot
Teacher
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Topic 3 - Entrepreneurs
Factors of Production
There are four factors of production:
Factor of Production
Description
Land
This is the land necessary to produce the
goods.
This is the manpower that goes into
producing a good.
This is the money, equipment etc required to
start a business.
This is the business idea that allows the
other factors to be brought into place in
order to start the business.
Labour
Capital
Enterprise
What is an Entrepreneur?
An entrepreneur is someone who:



Comes up with a good idea for a business
Organises all the elements needed for the business to work
Takes a risk by putting time and money into the business
There are no qualifications needed to become an entrepreneur, in fact man entrepreneurs have
no formal qualifications but they do have vision, imagination, drive and are innovative in their
approach.
Entrepreneurs bring wealth to the country by setting up businesses which in turn create jobs
and put money into the economy via taxation. Often entrepreneurs are rewarded with awards
and title i.e. Alan Sugar is now Lord Alan Sugar.
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Task 1 
Do you know any of the following entrepreneurs, the name of their business, what line of
business they are in and is it goods or services?
Entrepreneur
Name of Business
Line of Business
Goods or
Services?
Richard Branson
Alan Sugar
Michelle Mone
Tom Farmer
Tom Hunter
Duncan Bannatyne
Bill Gates
Task 2 
Now see if you can think of some other entrepreneurs not listed above.
Entrepreneur
Name of Business
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Line of Business
Goods or
Services?
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Topic 4 – Business Organisation Types
There



are different types of business organisations:
Private
Public
Voluntary (third sector)
These organisations exist for a variety of reasons:

to make profits

to provide a public service

for charitable reasons
Type
Public Sector
Examples
Public Sector organisations
include schools, the police,
the BBC etc.
Aims
Provide a Service
Private Sector
Private Sector organizations
include John Lewis, McGhees
the Bakers, Get Stuffed etc.
Make a Profit
Third Sector
(voluntary
sector)
Third sector organizations
include Oxfam, Sciaf, Cancer
Research etc.
To help people and make
a difference
Task 1 
In your jotter make a list of three different organisations for each of the organisation types
listed above. Research their website to try and come up with a list of aims/objectives for
each type of organisation.
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Topic 5 – Types of Business
When deciding to set up your own business you need to decide which type of business you
want to be.
Type
Sole
Trader
Description
Owned and controlled
by one person. The
owner will provide all
the funds to start up
the business – this is
known as the capital.
Partnership Can have between 2
and 20 owners or
partners.
Advantages
 Easy to set up
 Keep all the
profits
 Make all the
decisions



Limited
Company
Owned by
shareholders, who may
or may not be involved
in running the company.


Disadvantages
 Difficult to get
time off
 If the business
fails you may lose
everything you
own
Risk and
responsibilities
shared
More capital can
be raised
More expertise
brought into
business

If the business
fails you only
lose the money
you put in
Easy to raise
more money




Have to share the
profits
Make be
disagreements
about how to run
business
If the business
fails you may lose
everything you
own
Expensive to start
People running the
company may
disagree
Task 1 
Working with a partner, make a list of five organisations which fit into each of three
business types listed above. Use the Internet to research possible busniness types. Your
teacher will suggest some possible websites.
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Topic 6 – Marketing Your Product
The Marketing Mix
The marketing mix is known as the 4 Ps:




Price
Product
Place
Promotion
PRICE
PRODUCT
TARGET
MARKET
T
PLACE
PROMOTION
Price
Must be set at a level that consumers are willing to pay for the
goods but also enable the organisation to make a profit.
Product
This must be what the consumers want and must do what they
want it to do.
Place
The process by which the product reaches the market in the
right place, at the right time and in the right quantity.
Telling the consumers about the product and enticing them to
buy it through advertising and promotion.
Promotion
Task 1 
Pick a business you are familiar with and write down what products/services
they sell, where they sell their goods, how they promote their goods and what
sort of prices they charge (are they a discount brand or do they charge big
prices etc).
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Topic 7 – Price
The price of an item is the amount of money that it costs to purchase a product. Profit is the
amount of money a business makes from making/selling the product.
The purchase price of a product is dependent on a number of factors:





How much it costs to buy a product or make the product?
How much other businesses are charging for the same type of product?
Whether the product is new to the market or established in the market?
What market you are targeting your product to?
How much profit the business wants to make?
Task 1 
Check the websites of Tesco, Asda and Sainsburys to compare the prices of 5 different
everyday products (milk, sugar, bread etc). Remember to use the same brand, size etc when
comparing products. Write down your findings.
Product
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Tesco
Price
Asda
Price
Sainsbury
Price
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Task 2 
In pairs, discuss why you think the prices for similar products might be different. You
should come up with a list of as many factors that have meant the prices are different.
Factor
1.
2.
3.
4.
5.
We all pay for goods every day but how do companies decide on the price to charge for the
products they sell. They will obviously want to charge a price which will allow them to make a
profit. However, if their prices are too high then their customers will shop about and find
another company which charges less.
To decide on a selling price each company must first work out how much it costs them to
produce the goods they are selling. The costs of making the goods can be split into 3
different elements:

Materials – the resources needed to make the product

Labour – the money paid to the workers making the product

Expenses – the payment for rent, insurance, light and heat etc
For example, a company making desks would have to pay for the following:

Materials - wood

Labour - wages for joiners

Expenses - lighting and heating costs of the factory
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Task 3 
Write down another 2 costs for each of the 3 elements when making a desk.
Material
Labour
Expenses
Task 4 
The Rochco Fruit Juice Company had the following costs when they produced 20,000 bottles
of apple fruit juice:
Wages of the fruit pickers
Insurance of the factory
Bottles
Apples
Wages of the bottlers
Packers’ wages
Light and Heat of the Factory
Sugar
£11,000
£8,000
£3,000
£600
£9,000
£6,000
£2,000
£400
Write down which items are materials, labour or expenses
Materials
Labour
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Expenses
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The total cost of making 20,000 bottles of apple fruit juice was £40,000. We can work out
the cost of making one bottle of fruit juice by dividing the total cost by the number of
bottles made:
£40,000 ÷ 20,000 = £2 per bottle
If the Rochco Fruit Juice Company sold each bottle of apple fruit juice for £2 each they
would only cover the costs of making them. To make a profit they must sell them for more
than £2 each. The extra which is added on to the cost price to give a profit is usually
expressed as a percentage and is known as the “Mark-up”. If they decided to have a 50%
mark-up this would mean adding on an extra 50% of the cost price to give the Selling Price.
The Selling Price would therefore be calculated as:
Cost Price £2 + (£2 x 50%) £1 = £3
Task 5 
The Rochco Fruit Juice Company sells different flavours of fruit juice and has different
costs and mark-ups for each. Using a calculator, work out the selling price for each type of
fruit juice:
Type of Juice
Banana
Strawberry
Apricot
Mango
Raspberry
Cost Per
Bottle
Mark-up
£4
£3
£5
£4
£6
25%
20%
50%
20%
25%
Selling Price
£
Although most companies would like to have a high mark-up to give them a big profit on the
goods they sell, they have to be careful that rival companies are not selling the same
products at a lower price. Most companies – especially supermarket chains - check each
others prices regularly to try to undercut their rivals and therefore get more customers.
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Topic 8 – The Product
It is important to take time to make sure that you have a
product to sell that people will actually want to buy. You
might need to think about what range of people you think
will be interested in buying your product – known as your
target market.
You might decide to target your market based on a number
of different factors. This could be based on – age, income level (how much money a person
earns), class (working, middle or upper class), even things perhaps like geographical area.
Making the Product
In order to complete a product you will need inputs –
this might be materials, labour or any machines. The
process will be what it takes to complete the finished
product. The output will be the finished product ready
for sale.
If you are creating a product – you must decide
whether you are going to make the product by hand or
by machine. You must also decide how many items you
will need to produce.
When your producing goods as ‘one offs’ – goods tend to be made
by hand. However, many of the goods that we buy for our homes
or wear tend to be mass produced. This means that the goods will
usually have been created by a machine at some stage in their
production.
When we make goods by hand – it is known as labour intensive.
When goods are made mainly by machine, they are known as capital
intensive. Goods which are mass produced by machines are
normally far cheaper than ones that have been created by hand.
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Task 1 
In the table below write down the name of five products and list what group of people you
think the products might be targeted at.
Product
Target Market
Task 2 
Do you think the following products are labour intensive or capital intensive?
Product
Labour Intensive/Capital Intensive
Wedding Dress
School Shirts
Birthday Cakes
Loaves of Bread
Luxury Car
Bricks
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Task 3 
In the spaces below draw what you think the inputs would be for each product, the process
that takes place to make/produce it and the finished product. Show any materials,
machines or people used in the process.
Three products have been selected for you – see if you can think up another of your own.
Input
Process
Output
Product: Getting an exam pass
Product: Making a cake
Product: Building a house
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Topic 9 – Place (Where the Product is Sold)
Where a business chooses to set up (its location) is very important.
For example a shop might need to be in a place where there will be a
lot of passing trade or situated close to a housing estate so that
there will be a lot of potential customers.
Often producers/sellers of particular items are located next to
where their raw materials are found, or where there is access to a
large number of customers, or where there are good roads, rail links etc (called
infrastructure). Indeed you have to make sure there are not any competitors near by.
Businesses might decide where to set up based on the cost of
the premises (shops, workshops etc). Premises in the city
centre, perhaps close to busy shopping areas and good
transport links will be higher priced than outlets outwith the
centre. Of course some businesses may not need to be close to
city centre as some of their custom may be done by post,
telephone or even buying and selling over the Internet (called
E-Commerce).
Task 1
Look at the following types of business and give a reason why each of the businesses are
located where they are.
Business
Location
Shoe Shop
High street location
Timber Yard
Near the forest
Hotel
Near tourist attraction
Garage
On busy road
Shopping Centre
Close to motorway
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Reason
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Task 2 
About twenty years ago Disney decided to locate a theme park in Europe
– it decided that Paris would be the best location. Today this is known as
Disneyland Paris. With a partner discuss the following and come up with
a suitable answer.
Discussion Question
Reason
Why do you think that Disney did not
consider Scotland to set up?
Why do you think that Paris was a good
location for Disney?
What benefits do you think there has been
to France in having Disney setting up
Disneyland Paris in their country.
Task 3 
Name three businesses that have a shop as well as online – list their websites. Then see if
you can think of two businesses that trade only online.
Name of Business
Website
Online/Both
What do you think the benefits are for a business and for a customer of buying goods
online? List two advantages for each.
Advantage to Business
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Advantage to Customer
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Topic 10 – Promoting Your Product
Promotion is all about telling consumers about your products/services. It is all very well to
have a good product but if no one knows about it then it will not sell!
Businesses use a number of different ways in order to promote their products – television,
radio, Internet, posters, leaflets, emails etc.
The best to market a product is to pick the best features of the product/service and
highlight them to the consumer so that they might want to use it.
Task 1 
Look at the five shops/products/services below and state what you think might be the
best way to promote it – be sure to give a reason for your answer.
Product
Promotion
Reason
Get Stuffed
Colgate Toothpaste
Grand Hotel, Ayr
Dell Computers
Task 2 
You will be given thirty minutes to search the Internet – looking at various websites/
advertisements for products/services/shops you use regularly. Pick one that you like and
think is the most effective. Think about the market they are trying to attract, the
colours they have used, strap lines etc.
Product Name
Reason for Choice
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