NATIONAL QUALIFICATIONS CURRICULUM SUPPORT
Business Management
Understanding Business
Advice and Guidance for
Practitioners
[NATIONAL 5]
This advice and guidance has been produced to support the profession with the delivery of
courses which are either new or which have aspects of significant change within the new
national qualifications (NQ) framework.
The advice and guidance provides suggestions on approaches to learning and teaching.
Practitioners are encouraged to draw on the materials for their own part of their continuing
professional development in introducing new national qualifications in ways that match the
needs of learners.
Practitioners should also refer to the course and unit specifications and support notes which
have been issued by the Scottish Qualifications Authority.
http://www.sqa.org.uk/sqa/34714.html
Acknowledgement
© Crown copyright 2012. You may re-use this information (excluding logos) free of charge in
any format or medium, under the terms of the Open Government Licence. To view this licence,
visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or e-mail:
psi@nationalarchives.gsi.gov.uk.
Where we have identified any third party copyright information you will need to obtain
permission from the copyright holders concerned.
Any enquiries regarding this document/publication should be sent to us at
enquiries@educationscotland.gov.uk.
This document is also available from our website at www.educationscotland.gov.uk.
2
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
Contents
Introduction
4
Appendix 1
12
Appendix 2
16
Appendix 3
18
Appendix 4
20
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
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ADVICE AND GUIDANCE FOR PRACTITIONERS
Introduction
A range of potential learner approaches accompanies this guidance to support
practitioners in the delivery of the Understanding Business unit in National 5
Business Management.
The potential learner approaches focus on existing materials available from
the Education Scotland website and other web -based sources. These are
intended to support in adding value to the core knowledge delivered within
the unit, and to exemplify approaches where learners can develop skills such
as communication, investigation, presentation, analysis and research. The
learning approaches focus on examples of how learners can work together,
seeking opinions from others, and forming and offering their own opinions
based on their research, analysis and discussion of information given to them.
Hyperlinks provide key information within the activities present ed and it
would be beneficial for learners to have access to the internet while
undertaking the learner activities. Further use of the internet may also be
beneficial for research using related websites throughout the potential learner
approaches.
Guidance on the ways in which the learning and tea ching approaches may be
used is provided below. How these are used is at the discretion of the
practitioner and may be adapted and changed as necessary.
For many slides, additional notes are also given , detailing useful or
supplementary information, sources or tips for completing the activity. The
appendices to this document contain a series of potential learner approaches
which have been expanded and exemplified for practitioner use.
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UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
ADVICE AND GUIDANCE FOR PRACTITIONERS
Slide
no.
3
Topic
Detail and supporting knowledge
Starting up
4
What is an
entrepreneur?
5
Entrepreneurship
1
6
Entrepreneurship
2
Introduces the concept of entrepreneurship as
the fourth option open to young people in their
futures. Introduces the definition of an
entrepreneur to be discussed in relation to
Jonathan Levie video. Supporting knowledge
may take account of famous or local Scottish
entrepreneurs known to learners and their own
ideas of what ‘entrepreneur’ means.
Provides a definition for learners to compare to
the video footage following. Suggested
approach that learners create their own
definition of an entrepreneur using video
information and available resources to do this.
Hyperlinked to Jonathan Levie video.
Analysis of the skills and qualities required of
an entrepreneur. Learners are asked to evaluate
the information given in the video and to
analyse their own skills and qualities in relation
to entrepreneurship. Learners can discuss the
difference between a skill and a quality, using
personal examples to illustrate their knowledge.
‘Why does Scotland need more entrepreneurs?’
Learners are asked to examine how business
and developing business fits into Scotland’s
economy and society. Learners should be aware
of how business provides employment,
generates tax income for the nation, and
provides trade nationally and internationally to
contribute to the economy of the country.
‘Being an entrepreneur isn’t necessarily about
risk-taking’. Learners are required to examine
the possible risks of being an entrepreneur in
relation to personal/social life and economical
factors. General background knowledge of
possible business risks will support learners in
this activity.
To close this set of learning approaches, a
hyperlinked video is provided of an interview
with Mick Jackson - a Scottish Entrepreneur
and creator of a major social enterprise
company - The Wildhearts Foundation. In this
interview, Mick gives a wide range of
information on starting up in business, being an
entrepreneur, marketing his business and the
Exemplification
of this activity is
shown as
Appendix 1
7
Entrepreneurship
3
8
Entrepreneurship
- 4: Mick
Jackson - An
Inspiring
Entrepreneur
Skills
development
Communication
Enterprise
Literacy
Analysis
Communication
Self-evaluation
Literacy
Analysis
Presentation of
information
Enterprise
Thinking
Analysis
Evaluation
Working with
others
Thinking
Listening
Thinking
Communication
Self Evaluation
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
5
ADVICE AND GUIDANCE FOR PRACTITIONERS
9
10
&11
12
13
14
6
risks of enterprise. An accompanying
worksheet gives learners a 3-part activity based
on the supporting video and involving
discussion topics, web research and selfevaluation exercise .
Entrepreneurship Gives brief information on innovation and how
Research
5 - To boldly
new businesses may start. It encourages
Evaluation
go…
learners to research an entrepreneur - local or
Communication
well-known - to find out how they began their
Working with
business. Provides hyperlinks to BBC’s My
others
Business World highlighting entrepreneur case
Literacy
studies from around the world. This could be a
Thinking
group or solo exercise - could promote an open
discussion in the group - or learners could
produce a report or study using the information
gathered.
Entrepreneurship Working in pairs, learners could be asked to
Working with
6
evaluate factors which may be important to
others
entrepreneurs and the impact that each of th ese
Evaluation and
factors would have on the entrepreneur
decision-making
themselves, their personal life, business, local
Using ICT
community and Scotland as a whole. Learners
effectively
should have an awareness of what each factor
Thinking
listed means although this could be obtained
through additional research using text or web
resources.
What is an
Learners could study a range of descriptions given Evaluation
entrepreneur?
by Scottish entrepreneurs (via the Education
Communication
Scotland website hyperlink) and then use their
Listening
knowledge in a range of ways including
Literacy
 Learners assembling their own ideas using key
themes from the statements given.
 Using the range of statements to allow learners
to select the one they identify with most and
justifying their choice.
 Learners selecting one statement and applying it
to an entrepreneur (local or well-known
nationally) that they think it relevant to.
Over to you…
Learners are asked to create their own
Communication
enterprise using a flow diagram to support the
Decisionactivity. A hyperlink to a Business Gateway is
making
provided which can lead onto a Business Plan
Evaluation
template if required.
Research
Role of business
A general awareness of business activities will
in society
support learners in the following case study
tasks.
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
ADVICE AND GUIDANCE FOR PRACTITIONERS
15
Oban Chocolate
Co.
16
Theory into
Practice
17
Business activity
1
18
19
20
Business
activity 2
Further
information
shown as
Appendix 2
Business
activity 3
The Aim of the
Game: Business
objectives 1
Introduction of the case study video, using
hyperlink to web resource. Learners could
access the company website in advance of
watching the video resource to gather initial
information, although they will be asked to use
the website in a later task.
Learners are asked to use the theoretical ideas
they produced earlier regarding the skills and
qualities possessed by an entrepreneur. They
are asked to apply these ideas to the real -life
case study entrepreneur they have observed and
to evaluate whether the theory stands true in
practice.
Learners are asked to decide which sector(s) of
industry the case study business operates in, or
whether it operates in more than one sector.
General knowledge of industry sectors
(primary, secondary, tertiary, quarternary) is
required to support this task. Learners are asked
to suggest why a business may operate in
multiple sectors of industry. This could take the
form of a written statement, podcast,
presentation or group discussion.
Using the case study business website, learners
may be asked to prepare a summary of the
activities this business is involved in, in which
sectors of industry and how this activity is of
benefit to the business. Learners can present
their findings in an appropriate form.
Listening
Learners could research how a local business
person - or one familiar to them - was founded,
in order to inform their thinking about their
own business creation process. This could be
done using personal interviews, guest speakers,
visit to the business, Web Resources etc.
Results could be presented in a range of ways
by learners.
Learners could use an additional web resource
to decide whether or not the case study business
or a local or national business with which they
are familiar has the objectives suggested. This
could take the form of a group task/discussion,
producing a mind-map-type diagram, electronic
presentation or oral presentation to another
group. Learners may benefit from an initial
Using ICT
effectively
Research
Decisionmaking
Presentation of
information
Evaluation of
information
Communication
Thinking
Evaluation
Communication
Using ICT
effectively
Thinking
Presentation of
information
Research
Using ICT
effectively
Evaluation of
information
Communication
Presentation of
information
Using ICT
effectively
Thinking
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
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ADVICE AND GUIDANCE FOR PRACTITIONERS
21
The Aim of the
Game: Business
objectives 2
22
How does
business affect
people? - 1
23
Oban Chocolate
Co.
How does
business affect
people? - 2
24
25
How does
business
contribute to
society? - 1
26
How does
business
contribute to
society? 2 -
8
discussion or background knowledge on
business objectives and aims in order to support
this activity.
Learners could be asked to repeat the activity
on slide 20 using one public sector and one
voluntary sector business, and researching
possible objectives using internet resources.
Learners can choose an appropriate medium to
produce diagrams in this activity and suitable
methods of working i.e. pairs, teams etc
working arrangements. Knowledge of
public/third sector organisations will support
learners with this activity. A local focus could
be applied to this approach perhaps using a
business which learners are familiar with and/or
have studied previously.
Introduces the concept of stakeholders and asks
learners to discuss the following slide showing
a diagram of three possible stakeholders for the
case study business. Learners could be asked to
find additional stakeholders and then to
comment on the stakeholders’ possible interest
in the business and the potential influence they
could have over the business.
Diagram showing three possible stakeholders
for the case study business.
Learners could evaluate the stakeholders that
may be involved in their own business idea o r
enterprise, and how they may seek to satisfy the
demands of those stakeholders.
Learners could be asked to watch the business
case study video again and to think about how
this business benefits the local and national
economy, the local community, and individual
stakeholders. Learners are referred to an earlier
activity where they evaluated where Scotland’s
businesses fit into the country’s economy and
society. The end product of this activity could
be a group discussion, a group diagram or
summary sheet, or individual statements or
summaries. An awareness of the range of
stakeholders affected by a business organisation
will support learners with this activity.
Learners could be asked to research a simple
definition of ‘wealth creation’ and to be able to
explain the definition to the group. A general
discussion on creating wealth could support
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
Analysis and
evaluation of
information
Presentation of
information
Using ICT
effectively
Communication
Evaluation of
information
Evaluation of
information
Analysis
Evaluation
Decisionmaking
Evaluation of
information
Presentation of
information
Communication
Working with
others
Literacy
Communication
ADVICE AND GUIDANCE FOR PRACTITIONERS
Creating Wealth
27
How does
Business
contribute to
Society? - 3:
Wealth creation
Exemplification
of this activity
is shown as
Appendix 3
28
How does
society affect
business?
29
How does
society affect
business? 2
30
Internal and
External
Factors
31
Customer
Satisfaction 1:
The Customer is
King
learners in this and later activities. Definitions
could be noted by learners for later use.
Learners could be encouraged to use examples
to explain the idea of creating wealth.
Explanation of wealth creation through a ripple
effect of business to business transactions
spread of profit and turnover. Learners could be
asked to produce a diagram to explain this
concept using a good or service that they are
familiar with.
An initial example that could be used to
demonstrate to learners the extent to which
business can spread around the productio n of a
single good or service may help learners with
this activity. Learners can use an appropriate
media to produce their diagram and could work
cooperatively or individually as required.
Learners could be asked to work as a group,
discussing possible factors in society that could
influence the case study business, and how they
could have an effect on it. Learners may have
the opportunity to review and discuss findings
in the following slide.
Learners could be asked to group the factors
they have listed into main headings - these
could be established through a group discussion
where specific factors are common to more than
one group. Learners could then compare their
own findings to factors they research using
Internet resources.
Learners could establish the difference through
discussion between factors which are external
to business and affect it - and those which are
internal and apply this to their earlier findings.
Learners can then decide how these factors will
impact on the case study business, their own
business idea, or a local/well-known business,
and how they would ensure business success
despite these factors.
.Background information on the need for
customer satisfaction policies and strategies in
today’s business world could help support
learners undertaking this activity. The activity
gives learners the opportunity to work cooperatively with other pairs or groups within
the class group. They could be asked to devise
a possible customer satisfaction issue, provide a
Presentation of
information
Thinking
Working with
others
Communication
Analysis
Using ICT
effectively
Working with
others
Communication
Evaluation
Decisionmaking
Problem-solving
Working
together
Creativity
Problem-solving
Communication
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
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ADVICE AND GUIDANCE FOR PRACTITIONERS
32
Customer
Satisfaction 2
Example
diagram given
as Appendix 4
33
Customer
Satisfaction 3
34
Customer
Satisfaction 4
35
Socially
responsible
business
36
ebay – business
with a
conscience
10
solution to another group’s issue and review the
solution given for their own issue, in order to
comment on its effectiveness.
Reviews the outcome of the customer
satisfaction exercise and learners could be
asked to produce a flow diagram to show the
possible impact of poor customer care on the
business. An example diagram is given
demonstrating the possible effects of good
customer satisfaction approaches, in order to
support learners.
Learners could have the opportunity to use
internet resources to investigate a business they
may be familiar with. This could be a local
business or a well-known national business.
Learners could be asked to research the
business’ approach to customer care and to
summarise their findings using appropriate
media. Some support may be useful in
suggesting what aspects of customer care
learners should look for, eg communication
lines, policy statements, standards of service
etc. Learners may have to revise their choice of
business if the required information is not
readily available.
Learners could be asked to develop a Customer
Satisfaction statement or policy for the case
study business, their own business idea, or a
business they are familiar with. T his could be
carried out individually, in pairs/groups, or as a
whole class group through discussion. A
hyperlink is given to a short Mission Statement
to support learners in this approach.
Learners could undertake timed research to
discover what corporate social responsibility
means. This could support further discussion on
real examples of social responsibility from
well-known or local businesses, and how
learners might apply this to their own business
idea.
Focuses on ebay as an award-winning ethical
business and asks learners to research evidence
to support this. Learners could be directed
towards an ebay web resource, which contains
information on the organisation’s policy on
customer care and ethical trading. Some
background information on ethical business
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
Communication
Using ICT
effectively
Evaluation of
information
Literacy
Evaluation of
information
Presentation of
information
Using ICT
effectively
Working with
others
Thinking
Literacy
Literacy
Using ICT
effectively
Communication
ProblemSolving
Using ICT
effectively
Evaluation of
information
Research skills
ADVICE AND GUIDANCE FOR PRACTITIONERS
37
And the winner
is…
38
Bob Keiller
discussion
points
39
Entrepreneurial
Exchange and
Micro-Tyco
40
Over to you…
may support learners with this activity.
A video clip of an interview with Bob Keiller Scottish entrepreneur, CEO of PSN and 3 times
winner of the Entrepreneur of the Year Award.
Bob’s company has also been awarded
recognition for CSR. The video gives a wide
range of information and is organised against
key questions throughout. Learners could take
brief notes during the video to prepare them for
the following activities.
Learners could be asked to produce a short
study of Bob Keiller as an entrepreneur, taking
into account previous activities and knowledge
points on skills and qualities, risk-taking etc.
Learners could opt to do this individually, in
pairs or as a group and should select the most
appropriate media for presenting their
information. Learners are directed towards the
Wood Group PSN web resource to research
supporting information. Learners are provided
with a list of suggested topics for inclusion in
their study.
Learners could be directed to the two resources
shown and asked to investigate each one.
Research should answer the over-arching
question ‘How do they contribute to Scotland’s
entrepreneurial future?’
Effective use of
ICT
Literacy
Evaluation of
information
Communication
Presentation of
information
Using the hyperlinked web resource, learners
could be asked to find an interview with an
entrepreneur they find inspirational. Learners
could be asked to produce a short summary on
why they find this person inspiring. This could
be presented to the group, if appropriate.
Using ICT
effectively
Evaluation of
information
Presentation of
information
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
Listening
Understanding
Research skills
Evaluation
Using ICT
effectively
11
ADVICE AND GUIDANCE FOR PRACTITIONERS
Appendix 1: Slide 6 – Exemplification of learner
approaches
Why does Scotland need more entrepreneurs?
Learners could examine how business and developing business fits into
Scotland’s economy and society. Learners should be aware of how business
provides employment, generates tax income for the nation and provides trade
nationally and internationally to contribute to the economy of the country.
Learners could be asked to create a diagram showing the connections bet ween
business and the different parts of Scotland’s society affected by business .
Learners could be prompted to think beyond the basic contributions made by
business to Scotland’s society:
 employment
 tax revenue
 national and international trade.
They could also be asked to think about the deeper impact that
entrepreneurialism may have on Scotland’s society:
 Solving embedded social issues: vandalism, drug and alcohol abuse,
unsociable behaviour. How might these be affected by an increase in
entrepreneurial activity? Increasing standards of living through
employment and training may have a positive effect on alleviating some of
these social issues.
 Scotland’s global reputation being enhanced through entrepreneurial
activity and therefore leading to international investment.
 International investment in Scotland, creating a cyclical effect regarding
employment and tax revenues, enabling regeneration of disadvantaged
areas, development of housing and improved infrastructure to support an
expanding working population.
 Not-for-profit organisations impacting on young people’s education from
an early age: Prince’s Scottish Youth Business Trust, Saltire Awards etc
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ADVICE AND GUIDANCE FOR PRACTITIONERS
This exercise could be preceded by a general group discussion on the above
topics, giving learners a broader view of the topic and allowing them to form
their own opinions on the wider reaching effects of enterprise in Scotland.
Evidence to reinforce the idea that Scotland needs more entrepreneurs is
shown below. This is taken from the Scottish Governmen t Economic Strategy
from 2007. 1 This could be used in a general discussion preceding the activity.
Over the last 30 years, Scotland’s annual average GDP growth has been well
below that of comparable small European countries and significantly below
the UK average.
Strategic objectives for the Scottish Government are justified as follows:
 By making Scotland wealthier and fairer we will generate wider




opportunities for work, increase our competitiveness and make Scotland a
more attractive place to live, work and invest.
By making Scotland smarter, we will lay the foundations for the future
growth and well-being of our children, increase skill levels and better
channel the outputs of our universities and colleges into sustainable
wealth creation.
By making Scotland healthier through more anticipatory, timely and
effective services and encouraging healthier lifestyles, we will increase the
productivity of Scotland’s workforce, reduce absenteeism, improve public
sector efficiency and increase participation by reducing the numbers of
workers on incapacity benefit.
By making our communities safer and stronger, we will increase the
attractiveness of Scotland as a place to live and work, attract talented
migrants and high-quality businesses, reduce out-migration and secure the
productive engagement in proactive activity of an even higher proportion
of the population.
By making Scotland greener, we will improve the natural and built
environments, which are valued by those living and working in Scotland
and underpin many of our businesses and key sectors.
How will Learning, Skills and Well-being contribute to Scottish
Governments’ strategic objectives?
 Our people are our greatest economic asset. A skilled and educated
workforce is essential to building our comparative advantage and to the
delivery of sustainable economic growth. Learning and skill development
in work are also key to developing a more adaptable economy.
1
http://www.scotland.gov.uk/Publications/2007/11/12115041/0
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
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13
ADVICE AND GUIDANCE FOR PRACTITIONERS
Through their Economic Strategy, Scottish Government aim to:
- stimulate the future generation of entrepreneurs in Scotland through
building the ambition, creativity and enterprise awareness of our school
children
- address gaps in access to capital that are constraining Scottish businesses
from reaching their full potential, while helping to build capacity in the
investment community to remove barriers to investment
- provide a continued supply of the skilled people and ideas that business
needs from our colleges and universities
- support social enterprise, as part of investment in an enterprising third
sector, ensuring the provision of start-up assistance and encouraging
efforts to provide supported employment as an early step for those furthest
from the labour market.
Sir Tom Hunter, who endowed the Hunter Centre for Entrepreneurship at
Strathclyde, said:
Fundamentally, Scotland needs to drive more economic development, both
corporately and entrepreneurially, and if we do not drive a definitive
strategy to do so – that includes a supportive tax regime, fiscal policies
that drive growth and ground level support for start-ups – we will be an
economy destined for reverse gear. Our new government should take a
fresh look at enterprise policy across all the environments through which
our young people travel – including further, as well as higher, education.
Scotland has led the world in the past; it’s time for it to lead again for our
national future.
http://www.strath.ac.uk/huntercentre/news/, December 2011
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ADVICE AND GUIDANCE FOR PRACTITIONERS
Increased business enterprise in Scotland
Improved self-esteem
Taxes
Employment
Improved housing and
other infrastructure
Standard of living
Improved skills
development and
training
Decrease in negative
social issues
Improved education
provision and uptake
International
investment in Scotland
Global competition
and trading
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
15
ADVICE AND GUIDANCE FOR PRACTITIONERS
Appendix 2: Slide 18 – Exemplification of learner
approaches
Using the case study business website, learners could be asked to prepare a
summary of the activities this business is involved in, in which sectors of
industry and how this activity is of benefit to the business. Learners could
present their findings in an appropriate form.
Although the activity is based on the case study business, another business
could be substituted here as appropriate, perhaps giving learners the
opportunity to study a local business they are familiar with. Alternatively a
large, well-known business could also be used, giving a high degree of
flexibility to this activity.
Learners could opt to work on this activity as an individual study, work with
a partner or undertake the exercise as a group, and could choose to present
their results in written form, using electronic word -processing or presentation
software, as an audio podcast or as a filmed presentation. Suitable media can
be selected at the practitioner’s/learner’s discretion.
Oban Chocolate Co. activities
Wedding cake design and supply (secondary/tertiary sectors): Could benefit
the business by attracting a certain niche market and allowing high -quality
goods to be supplied at a premium price. Allows the business to gain
recognition and enhance reputation in a specific market. Also allows control
over advertising and sale of bespoke goods.
Children’s chocolate workshops (tertiary sector): Benefits the business by
projecting a positive image into their local commun ity and engaging with
stakeholders. Introduces potential future customers to the business in a
positive manner.
Online supply of goods (tertiary sector): Provides a wider market to the
business and allows a flexible supply of goods outwith the immediate s emirural area, which could bring additional profit to the business. Also allows for
more widespread advertising and recognition for the business.
16
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
ADVICE AND GUIDANCE FOR PRACTITIONERS
Manufacture of chocolates (secondary sector): Creates a specialised product
in a niche market.
Research and development of products (secondary sector): Benefits the
business by continually seeking to improve the product and expand product
range. Keeps business up to date with latest developments in their industry,
allowing them to compete more effectively and perform more efficiently.
Café selling own products (tertiary sector): Expands the business in the local
community and provides an outlet for the sale of own manufactured goods.
Allows control to be maintained over quality, advertisement and profit gained
from sale of goods. Increases the presence of the business in the local
community and seeks to establish a positive reputation. Also allows for
transactions with other businesses, increasing the business’s range of supply
and potential market.
Supply of goods to trade outlets: Widens the market for products to beyond
the local area. Lessens the need for own advertising and outlets outwith the
local area. Increases profit and recognition for the business.
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
17
ADVICE AND GUIDANCE FOR PRACTITIONERS
Appendix 3: Slide 27 – Exemplification of learner
approaches
An explanation of wealth creation through a ripple effect of business -tobusiness transactions, spread of profit and turnover is given to learners and
they are asked to produce a diagram to explain this concept using a good or
service that they are familiar with.
An initial example, which could demonstrate to learners the extent to which
business can spread around the production of a single good or service , may
help learners with this activity. Learners can use an appropriate media to
produce their diagram and could work co -operatively or individually as
required.
Learners could be encouraged to think about the detail of producing a good or
service, how businesses will transact with one another to obtain the raw
materials required for production and how this has the effect of increasing
turnover for every supplier in the chain of production.
A sample diagram is shown on the following page , using a mobile phone as
an example of a good that learners will be familiar with.
The following web site is a good source of information on raw materials and
manufacturing processes in simple language for learners.
www.madehow.com
This web site also includes some inventor biographies that could be used by
learners to explore innovation and enterprise further during learner activities
in this unit.
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ADVICE AND GUIDANCE FOR PRACTITIONERS
In a typical mobile phone, the handset consists of 40% metals, 40% plastics and 20% ceramics and trace materials. Each set of
materials will come from a supplier – usually outwith the mobile phone manufacturing company itself – and therefore each
supplier will sell materials to the mobile phone manufacturer , generating turnover for their own organisation.
The rechargeable battery contains nickel, cobalt,
zinc, cadmium and copper – all mined from the earth.
The mining company will sell these materials to the
battery manufacturer.
Circuit boards are made from mined, raw materials ,
including copper, gold, lead, nickel and zinc.
The manufacturing of these boards requires crude oil for
plastic, and sand and limestone for fibreglass. The
primary industry mining these materials from the earth
will sell them on to processing companies for them to be
made into plastic and fibreglass.
Copper is mined, ground, heated and treated with
chemicals and electricity to isolate the pure metal used
to make circuit boards and batteries. The resulting
copper pieces are shipped to a manufacturer, where
they are formed into wires and sheets.
The battery manufacturer will sell the finished
batteries to the mobile phone manufacturer.
The plastic and fibreglass
manufacturers will sell these
materials on to a component
manufacturer who will sell the
finished pieces to the mobile
phone manufacturer.
The liquid crystal display (LCD). Various liquid
crystalline substances, either naturally occurring
(such as mercury) or synthetic, are used to make
LCDs.
LCDs also require the use of glass or plastic. The
LCD manufacturer will sell the components to the
mobile phone manufacturer.
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012
19
ADVICE AND GUIDANCE FOR PRACTITIONERS
Appendix 4: Slide 32 – Example diagram
Customer transacts
with business.
Positive experience of
business for customer
Negative experience of
business for customer.
Customer leaves
satisfied and will
return to business in
future.
Customer leaves dissatisfied,
may complain and may not use
business again.
Customer informs
friends of good
experience.
Business receives
additional customers
due to good
reputation.
Customer informs friends of
negative experience with
business.
No new customers attracted to
business – competitor
companies may attract these
customers.
Business profits may fall,
causing loss of staff and
possible closure.
Profits rise due to increase in
business. The business can
employ more staff and grow
larger.
Quality staff is attracted to
the business due to good
reputation and growth.
Good staff offers quality
service to customers.
20
Customer service may suffer
due to loss of quality staff.
Products and service may
suffer due to falling turnover.
Business may face closure or
bankruptcy due to
competition.
UNDERSTANDING BUSINESS (NATIONAL 5, BUSINESS MANAGEMENT)
© Crown copyright 2012