Student Worksheet 6

Business in context

When Sofia Akram was made redundant from her job at a local garage, she decided to use her redundancy money to realize her dream and open a small hotel near the sea.

She found a large house that would suit her needs for sale in a village near the coast, although her redundancy money would only pay the deposit she needed. Still, there was enough accommodation for her to live in the house as well as let four bedrooms. If she sold her own house and took out a mortgage on the new one, she should have enough – with a little left over to help her through the first few months.

‘It’s exciting’, Sofia told her sister Tina. ‘It’s what I’ve always wanted to do. I’ll be my own boss and rise or fall on my own efforts. All the profits will be mine; they will not go to the head office of a big company. I’ll advertise and I think it will be a success.’

Tina was not so sure. ’But you’ll be on your own,’ she said. ‘Think of the long hours you’ll have to put in. it’s not just cooking breakfasts and making beds. You’ll be on call all the time. You’ll have to do the books, take stock, place orders and things like that. You’ve never run a business yourself before. What about the accounts and paperwork? You may not find that as much fun as serving breakfasts and chatting with your guest – but you’ve got to do it, because there won’t be anyone else to do it for you. And what will you do if it all goes wrong? What if you have a poor year and you don’t get as many booking as you hope for? You could lose everything – not just the business, but your home and livelihood as well.’

Question

1. What are the advantages Sofia has put forward for running her own business? (>)
2. What disadvantages has Tina raised? (>)
3. If you were Sofia, what would you do? Give your reasons! (>>>)
   

Resource: Chris J. Nuttall, IGCSE Business Studies, Cambridge University 2002

Student Worksheet 5

Business in context

Daewoo international started in 1967 as a small textile exporter based in Korea. The company is now leading multinational company. Daewoo’s products include steel, metals, automotive components, machinery, industrial plant, electronics, textiles and chemicals, international  finance and investment, and project management. Daewoo now operates in over 165 countries around the world through a network of over 200 branch offices and subsidiaries.

A major part of Daewoo International is its motor division. Daewoo Motor has been a major force in the development of both Korea’s auto industry and national economy for twenty-five years. It has successfully helped to make Daewoo into a truly global company with an extensive international network integrating research and development, production lines of 12 plants in 11 different countries, in addition to its production facilities in Korea. Daewoo has a worldwide capacity of 2.3 million vehicles per year.

Question

1. In which country did Daewoo start operating? (>)
2. How many countries does Daewoo operate in now? (>)
3. According to the case study, how many different types of goods and services does Daewoo produce? (>)
4. Most people would consider that Daewoo is a large company although it had small beginnings. How do you think Daewoo grew to be the size that it is now? (>>)
5. Do you think that Daewoo benefits from operating in many different countries? Explain your answer! (>>>)

Resource: Chris J. Nuttall, IGCSE Business Studies, Cambridge University 2002

Student Worksheet 4

Business in context 1

Bus services are necessary in many communities. They are provide convenient means of travel at the right times and they can reduce pollution and traffic congestion. Rahim’s bus service links several small communities with a local town, which is the place of work for many and the site of many schools, the college, and the main shopping and leisure area. Before Rahim, a private firm, took over, a year ago, the bus service was run by the state.

Most buses are full in one direction and almost empty in the other depending on the time of day. In the last year the costs of running the bus service have increased sharply and gradually the service has become less reliable, the buses more uncomfortable and the attitudes of the drivers less friendly. Some morning and evening services have been canceled and the fares have been increased.

Question

1. How has the ownership of the bus service changed?(>)  
2.  What are the main problems faced by the bus service?(>)
3. What are the problems caused to users of the bus service? (>)
4. How might the problems you identified in question 2 and 3 be connected with the change in ownership of the bus service? (>>)
5. Who do you think should own and run the bus service: Rahim or the state? Give reasons for your answer! (>>>)

 Activity 1

1. Find out what industries in your country are nationalized! (>)
   
2. Give reasons why the industries you identified in question 1 were nationalized! (>)
3. Suggest other industries in your country that you think are appropriate for nationalization. Give reasons for your suggestions! (>>>)

Activity 2

1. Find out if any previously nationalized industries have been privatized in your country! (>)
2. Why were they privatized? (>>)
3. What do you think have been the positive and negative consequences of privatizing those industries? Give your reasons! (>>>) 

Student Worksheet 3

Business in context

The government was in a dilemma. The latest statistics showed that more people in the country were smoking, and the incidence of deaths from lung cancer was increasing. this was not good news. The minister looked at the figures.

Soon the anti-smoking lobby would be calling for the government to introduce measures to reduce the number of smokers in the country. they would be countered by the campaigners for freedom to choose.

And then there was the health cost to consider: the minister had calculated that if everybody gave up smoking, the government could make a further reduction in tax. That would benefit everybody, smoker and non-smoker alike.

But the minister also had to consider the country's industry: the tobacco industry was a major employer and exporter. Any action now to reduce smoking in the country could harm employment and even drive the tobacco companies abroad.

It seemed that there were three things the government could do:

• Increase the tax on cigarettes and tobacco in an attempt to reduce smoking - that would upset the campaigners for freedom to choose and the tobacco industry;
• Put on a national television advertising campaign to educate people about the dangers of smoking - at least people could choose for themselves whether to smoke or not, but that would not be enough for the anti-smoking lobby;
• Nothing - after all, was it the government's job to tell people whether they could or couldn't smoke?

All of the alternative would upset somebody. The minister had to choose.

Questions

1. What is the problem that is troubling the minister? (>)
2. Why do you think the government has to deal with the problem? (>)
3. Explain in your own words the three options for action that the minister has outlined? (>>)
4. Which course of action do you think the government should take? Justify your answer! (>>>)

Activity
Read the market, planned and mixed economies studies.

1. Suggest arguments for and against a market economy! (>>)
2. Do you think that a market economy is an effective way of providing the goods and services wanted by society? Explain your answer! (>>>)

Resource: Chris J. Nuttall, IGCSE Business Studies, Cambridge University 2002

Student Worksheet 2

Business in context

Mission Statement: Local Government

Our mission statement is "striving foe excellence - working with and for our communities".

Our values are to strive for excellence in:

• Focusing on our customers' needs
• Being honest, open and accountable
• Providing equality of opportunities
• Developing our employees
• Making best use of resources
• Working in partnership

Mission Statement: Neptune Shipping Agency Ltd.

Our mission: To be the most successful company supplying Freight Forwarding Services.

Out aims: Service and value for money - Customer care - Environmental commitment - Employment standards.

Mission Statement: International Energy plc

We are passionately committed to:

• Leading in our field
• Operating at the highest levels of efficiency
• Investing for the future
• Stimulating the personal development of employees
• Working for shareholders and satisfying customers
• Protecting and improving the environment in which we operate

Questions

A mission statement is a statement of the general purpose and aims of a business. Read the three mission statement above.

1. What product or service does each of the businesses provide? (>)
2. Who is affected by activities of each business? (>)
3. What are the main purposes of each business? (>)
4. Suggest other purposes each business is trying to fulfill, not included in its mission statement! (>>)
5. Explain why each business was established! (>>>)

Resource: Chris J. Nuttall, IGCSE Business Studies, Cambridge University 2002

Student Worksheet 1

Business in context 1

Shell is one of the world’s largest oil companies. The company makes products such as petrol and diesel from crude oil. Crude oil is unrefined oil that is found occurring naturally in deposits within the earth. To produce the petrol that people buy from garages Shell must first extract the crude oil from the earth. The company does this by drilling oil wells, many of which are under the sea.

Question:
1. What does Shell produce? (>)
2. Where can you buy Shell’s product? (>)
3. What is Shell’s product made from? (>)

1.1 Activity

Think carefully about the following product and answer the questions: (a) a loaf of bread (b) an oak coffee table and (c) this book.

1. What are the materials that each product is made of? (>)
2. Where do these raw materials come from? (>)
3. Is society keeps using these raw materials will they eventually run out? Explain your answer.(>>>)

Business in context 2
Throughout the world, the demand of petrol and diesel is enormous. Without petrol or diesel people could not travel anywhere in their cars, either on business or for pleasure, and goods could not transported to shops and costumers. People and other businesses are therefor willing to pay for the petrol or diesel that Exxon and other oil companies produce, even though they often complain about the price!
However, think about some of the things you buy regularly - for example clothes or food. The companies that produce these products do so because there is an effective demand for them - enough people are prepare to buy the at their current prices. But think what might happen if price of these products increased. How much would you be prepared to pay them? At what price would you reduce the amount you bought? At what price would you stop buying them all together? What does this tell you about these companies and their products?

Resource: Chris J. Nuttall, IGCSE Business Studies, Cambridge University 2002