Business Studies Activity: Added Value


This is for use in KS 3/4 Business Studies

Why do this unit?

Students should understand the concept of added value, especially the links with lean production techniques. They should be aware of the ways to calculate added value and the relevance of a brand.

What does this unit do?

Students are shown some clips about added value, and then do an activity on the concept of branding.

Resources:

Interactive whiteboard or data projector, PCs for pupils, magazines and poster materials

Activities:

Starter:

The teacher shows (or asks students to link to) the Risks and Rewards sources list: http://www.risksandrewards.org.uk/sources.html

She/he asks the students which they think are the most successful companies they can see in the list.

They will hopefully choose the ‘brands’ they have heard of, such as Goodyear and Guinness. This can prompt a brief discussion about the value of an intangible brand and how it can add value to the commodity.

Main activities:

There are three main activities which will take an hour-long lesson :

1. The PowerPoint on the theory of adding value (see below).

2.Students could be shown a clip from “Homes under the Hammer” BBC TV show, where a cheap property is purchased at auction, x000 is spent on renovating and usually a considerably greater y000 can be achieved by selling.

Another excellent example is “Return to River Cottage, episode 2 “(from 3 .55mins in) where food writer Hugh Fearnley Whittingstall clearly demonstrates and actually verbalises the concept of adding value – rabbits cost 1 each, he processes them in to bunny burgers and rabbit kebabs and makes a considerable profit by adding value through this process.

3.The main activity requires some lateral thinking by the students. They are to create a poster (by hand or on the PCs) to demonstrate the concept of added value. They can use magazines, clipart or internet pictures to show how value is added through a process. The more able pupils may be able to link this with the three sectors of production as well.

Plenary:

Students are to describe their poster examples using key terminology used in the PowerPoint and starter discussion.

Homework:

Students are to taste test a branded versus non-branded product. They should comment on the price of each, the appearance and taste. They should be able to make a judgement on value for money to see if it is the quality that makes the variation in price or just the brand. (Avoid cola as Coca-Cola is so distinguishable from most others).

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