Free Enterprise System
Practicum in Marketing Dynamics
Marketing
Lesson Plan
Performance Objective
Students know the United States free enterprise system offers marketers entrepreneurial opportunities
to operate in private enterprise.
Specific Objective
 Explain the importance of the United States free enterprise system in encouraging opportunities
for entrepreneurial ventures
 Analyze a proposed business plan
 Discuss advantages and disadvantages of specialization
Terms
 Free enterprise system – system where individuals start and operate their own businesses
without government involvement
 Competition – struggle between companies for customers
 Price competition – competition that focuses on the sale price of a product
 Non-price competition – competition that focuses on product/service factors not related to price
 Monopoly – exclusive control over a product or the means of producing it
 Risk – potential of financial loss
 Profit – money earned from conducting business after all costs and expenses are paid
 Private enterprise - Business or industry that is managed by independent companies or private
individuals rather than by the state.
 Business plan – a proposal that describes a new business to potential investors and lenders
Time
When taught as written, this lesson should take four to five days to teach.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may
result in the elimination of any or all of the TEKS listed.
§130.348. Practicum in Marketing Dynamics
(c) Knowledge and Skills
(4) The student knows that the United States free enterprise system offers marketers
entrepreneurial opportunities
1
Copyright © Texas Education Agency, 2015. All rights reserved.
A) explain the importance of the United States free enterprise system in encouraging
opportunities for entrepreneurial ventures
B) analyze a proposed business plan
(11) The student knows that private enterprise is based on independent decisions by businesses
and consumers
B) discuss advantages and disadvantages of specialization
Interdisciplinary Correlations:
§111.32. Algebra I
(b) Knowledge and skills.
(1) Foundations for functions. The student understands that a function represents a dependence
of one quantity on another and can be described in a variety of ways. The student is expected to:
(E) interpret and make decisions, predictions, and critical judgments from functional
relationships.
§113.41. United States History Studies Since 1877
(c) Knowledge and skills.
(17) Economics. The student understands the economic effects of World War II and the Cold
War. The student is expected to:
(E) describe the dynamic relationship between U.S. international trade policies and the
U.S. free enterprise system such as the Organization of Petroleum Exporting Countries
(OPEC) oil embargo, the General Agreement of Tariffs and Trade (GATT), and the North
American Free Trade Agreement (NAFTA).
(28) Science, technology, and society. The student understands the influence of scientific
discoveries, technological innovations, and the free enterprise system on the standard of living in
the United States. The student is expected to:
(C) understand how the free enterprise system drives technological innovation and its
application in the marketplace such as cell phones, inexpensive personal computers, and
global positioning products.
§118.4. Economics with Emphasis on the Free Enterprise System and Its Benefits
(c) Knowledge and skills.
(5) Economics. The student understands free enterprise, socialist, and communist economic
systems. The student is expected to:
(A) describe the basic characteristics of economic systems, including property rights,
incentives, economic freedom, competition, and the role of government;
(B) compare the free enterprise system, socialism, and communism using the basic
characteristics of economic systems;
(C) examine current examples of free enterprise, socialist, and communist economic
systems;
(D) understand that the terms free enterprise, free market, and capitalism are
synonymous terms to describe the U.S. economic system; and
(E) analyze the importance of various economic philosophers, including Friedrich Hayek,
Milton Friedman, John Maynard Keynes, and Adam Smith, and their impact on the U.S.
free enterprise system.
2
Copyright © Texas Education Agency, 2015. All rights reserved.
(6) Economics. The student understands the basic characteristics and benefits of a free
enterprise system. The student is expected to:
(A) explain the basic characteristics of the U.S. free enterprise system, including private
property, incentives, economic freedom, competition, and the limited role of
government;
(B) explain the benefits of the U.S. free enterprise system, including individual freedom
of consumers and producers, variety of goods, responsive prices, investment
opportunities, and the creation of wealth;
(C) analyze recent changes in the basic characteristics of the U.S. economy; and
(D) analyze the costs and benefits of U.S. economic policies related to the economic goals
of economic growth, stability, full employment, freedom, security, equity (equal
opportunity versus equal outcome), and efficiency.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: General and Operations Manager
O*Net Number: 11-1021
Reported Job Titles: Operations Manager, General Manager (GM), Director of Operations, Plant
Manager, Store Manager, Facilities Manager, Plant Superintendent, Vice President of Operations
Tasks:



Oversee activities directly related to making products or providing services.
Direct and coordinate activities of businesses or departments concerned with the production,
pricing, sales, or distribution of products.
Review financial statements, sales and activity reports, and other performance data to measure
productivity and goal achievement and to determine areas needing cost reduction and program
improvement.
Soft Skills: Speaking, Active Listening, Critical Thinking, Judgment and Decision Making, Social
Perception, Persuasion
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
 Review and familiarize yourself with the terminology,
 Have materials ready prior to the start of the lesson.
References:
Textbooks:
Kimbrell, G., & Woloszyk, C. A. (2005). Marketing Essentials. Woodland Hills: McGraw-Hill Companies.
Online:
http://www.councilforeconed.org
http://www.onetonline.org
3
Copyright © Texas Education Agency, 2015. All rights reserved.
Instructional Aids
 Textbook
 Lesson Presentation
 Instructor Computer/Projection Unit
 Online Websites
Introduction
The main purposes of this lesson is to help students understand
 Free Enterprise System
 Private Enterprise
 Business Plan
Ask students what is a Free Enterprise System?
Ask students what does a business plan needs to propose a business?
Outline
MI
Outline
I. Terms
 Free enterprise system
 Competition
 Price competition
 Nonprice competition
 Monopoly
 Risk
 Profit
 Private enterprise
 Business plan
Instructor Notes
Use presentation as visual aide
Have students write vocabulary
terms and meanings
Discuss utilizing the presentation
and listed resources
II. Ownership in a Free Enterprise System
A. Personal ownership
B. Private Enterprise
C. Restrictions
III. Competition in a Free Enterprise System
A. Price
B. NonPrice
IV. Business Risk
A. New business
B. New products
C. Disaster
D. Profit/Loss
4
Copyright © Texas Education Agency, 2015. All rights reserved.
V. Business Plan
A. Description and Analysis
B. Organization
C. Marketing Plan
D. Financial Plan
Discuss utilizing the presentation
and listed resources
VI. Organization
A. Type of Ownership
B. Hierarchy model
C. Proposed Goods and Services
VII. Marketing Plan
A. Pricing policies
B. Promotion activities
VIII. Financial Plan
A. Capital
B. Income and Expenses
Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice
Students will review a complete business plan to evaluate the components required to successfully
develop a business.
Independent Practice
Assign students to complete the Private Enterprise Business Concept project.
Summary
Review
1. Define a free enterprise system.
2. Name the sections of a business plan.
3. What is private enterprise?
5
Copyright © Texas Education Agency, 2015. All rights reserved.
Evaluation
Informal Assessment
Informal assessment will be made as the student participates throughout the discussion process and
contributes to the guided practice activity. Teacher will observe students by walking the classroom
during each activity.
Formal Assessment
Students will be evaluated on the Private Enterprise Business Concept project using the Assigned Rubric.
Enrichment
Extension
Integrate math skills: Assign students to determine a financial budget to begin the operation of the
proposed business concept.
6
Copyright © Texas Education Agency, 2015. All rights reserved.
Private Enterprise Business Concept
Complete the following:
1.
2.
3.
4.
5.
6.
7.
Select a form of ownership for a type of business you would like to create
Describe the types of goods and services the business will offer
Determine where the business will operate
Select a target market for the business and describe it
Create a marketing plan for the business
Determine the source of financing
Select a name for your company
After determining the information for the sections above, write a report outlining the content into a
preliminary business plan. Then create a Digital presentation to share the business idea with the class.
7
Copyright © Texas Education Agency, 2015. All rights reserved.
Private Enterprise Business Concept
Categories
Content
Preparedness
20
15
Student is
Student shares
knowledgeable and
information
includes all
required in
information plus
presentation
additional content in
presentation
Student is prepared
Student seems
and has rehearsed prepared but should
extensively
rehearse more
Enthusiasm
Facial expressions
and body language
show interest and
enthusiasm about
the topic
Facial expressions
and body language
sometime show
interest
Speaking, eye
contact, and
posture
Speaks clearly,
stands straight and
makes eye contact
with audience 100%
of presentation
Speaks clearly,
stands straight and
makes eye contact
with audience 90%
of presentation
Written Report
Extensive
information included
with descriptive
factors regarding the
economic and
political system and
is well constructed.
Information
included regarding
economic and
political systems
and is well
constructed
10
Student is missing
one or two
elements in
presentation
5 or less
Student is missing
multiple elements
of content and is
lacking knowledge
Student is
somewhat
prepared but is
lacking rehearsal
Facial expressions
and body
language are used
to try to generate
enthusiasm
Student is not
prepared
Speaks clearly,
stands straight
and makes eye
contact with
audience 80% of
presentation
Information
included
regarding
economic and
political systems
Very little used of
facial expressions
or body language.
Did not generate
much interest in
topic
Mumbles, slouches
and does not look
at the audience
throughout the
presentation
One or more
elements are not
included regarding
the economic and
political system
Total Score ________
Maximum 100 Points
8
Copyright © Texas Education Agency, 2015. All rights reserved.