Lesson Plan
Business: What's the Big Deal?
Students will be able to define 'business' and identify and describe the four major functions of a business: production, procurement, finance, and human resources.
Understanding the functions of a business helps students comprehend the economic world around them, from the products they buy to the jobs people do. It lays a foundational understanding for future economic literacy and career exploration.
Audience
7th Grade Students
Time
30 minutes
Approach
Interactive discussion, direct instruction, and engaging activities.
Prep
Review Materials
10 minutes
- Review the Business: What's the Big Deal? Slides to familiarize yourself with the content and flow.
- Print copies of the What is Business? Warm-Up for each student.
- Print copies of the Business Functions Worksheet for each student.
- Review the Business Functions Answer Key.
- Prepare to project the slide deck.
Step 1
Warm-Up: What Comes to Mind?
5 minutes
- Distribute the What is Business? Warm-Up to each student.
- Ask students to spend 2-3 minutes writing down their initial thoughts on what a "business" is and what it does.
- Briefly discuss their responses as a class, writing key terms on the board. (e.g., selling, making money, products, services).
Step 2
Introduction to Business
5 minutes
- Project the first slide of the Business: What's the Big Deal? Slides.
- Lead a brief discussion: "We just talked about what you think a business is. Now, let's look at a formal definition and why businesses are important to our lives."
- Define business: An organization that provides goods or services to consumers in exchange for money.
- Emphasize the exchange of value (goods/services for money).
Step 3
The Four Major Functions
15 minutes
- Transition to the slides on the four major functions of a business.
- Production: Explain what it is (creating goods/services), provide examples (e.g., a bakery making bread, a software company creating an app).
- Procurement: Explain what it is (obtaining goods/services from external sources), provide examples (e.g., a restaurant buying ingredients, a manufacturer acquiring raw materials).
- Finance: Explain what it is (managing money), provide examples (e.g., paying employees, buying supplies, pricing products).
- Human Resources: Explain what it is (managing people), provide examples (e.g., hiring, training, supporting employees).
- For each function, ask students for their own examples to encourage engagement.
- Distribute the Business Functions Worksheet and have students work individually or in pairs to fill it out as you go through the functions or immediately after the explanation.
Step 4
Cool Down: Business Basics Check
5 minutes
- Collect the Business Functions Worksheet.
- Distribute the Cool Down: Business Basics Check.
- Ask students to complete the cool-down questions to assess their understanding of the basic definition of a business and its four functions.
- Collect cool-down tickets as students leave or as a quick check for understanding.
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Slide Deck
Business: What's the Big Deal?
Ever wonder how your favorite snacks get made, or how your go-to video game appears on the shelf? It all starts with business!
Welcome students and introduce the topic. Ask them to think about businesses they interact with daily.
What is a Business?
A business is an organization that provides goods (like a new phone) or services (like a haircut) to consumers.
Why do they do it?
In exchange for money! Businesses aim to make a profit by meeting people's needs and wants.
Review student responses from the warm-up. Connect their ideas to a formal definition.
The Business Team
Just like a sports team has different players with different jobs, a business has different functions or departments that work together.
There are four main functions we'll explore today!
Introduce the idea that businesses have different parts, like a team.
Function 1: Production
What is it?
The process of creating goods or services.
This is where raw materials are transformed into finished products, or where a service is designed and prepared.
Examples:
- A baker making bread
- A car factory assembling cars
- A graphic designer creating a logo
Explain Production. Give clear examples and ask students for their own.
Function 2: Procurement
What is it?
The process of obtaining goods or services from external sources.
This is how businesses get the materials, supplies, and services they need to operate.
Examples:
- A restaurant buying fresh produce from a farm
- A clothing company purchasing fabric
- A school hiring a cleaning service
Explain Procurement. Emphasize how businesses acquire necessary goods and services from outside.
Function 3: Finance
What is it?
Managing the money of a business.
This includes everything from how much things cost to paying bills and making sure there's enough money to grow.
Examples:
- Deciding prices for products
- Paying employees and suppliers
- Managing budgets and investments
Explain Finance. Talk about how money flows in and out of a business.
Function 4: Human Resources (HR)
What is it?
Managing the people who work for the business.
HR makes sure the right people are hired, trained, and happy so the business runs smoothly.
Examples:
- Hiring new employees
- Training staff members
- Handling employee benefits and workplace issues
Explain Human Resources. Focus on the people aspect of a business.
Putting it All Together
So, businesses create things, acquire what they need, manage their money, and take care of their employees!
All four functions work together to make a business successful.
Quick recap and transition to the worksheet.
You're a Business Whiz!
Now you know the basics of how businesses run. Look around you and see if you can spot these functions in action!
End the lesson with a positive note and encourage students to observe businesses around them.
Warm Up
What is Business? Warm-Up
Instructions: Take a few minutes to answer the questions below. Don't worry about being perfectly correct, just write down what you think!
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In your own words, what do you think a "business" is?
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What are some things that businesses do?
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Can you think of a specific business you interact with often? What do they do?
Worksheet
Business Functions Worksheet
Instructions: As we discuss the four major functions of a business, fill in the blanks and provide your own examples for each.
1. Production
What it is: The process of ___________ goods or services.
My example of Production:
2. Procurement
What it is: The process of ___________ goods or services from external sources.
My example of Procurement:
3. Finance
What it is: ___________ the money of a business.
My example of Finance:
4. Human Resources (HR)
What it is: ___________ the people who work for the business.
My example of Human Resources:
Thinking Deeper
Think about your favorite restaurant or store. What is one thing they do for each of the four business functions?
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Production:
-
Procurement:
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Finance:
-
Human Resources:
Answer Key
Business Functions Answer Key
1. Production
What it is: The process of creating goods or services.
My example of Production: (Answers will vary, e.g., A clothing company designing and sewing shirts, a software company writing code for an app, a coffee shop brewing coffee.)
2. Procurement
What it is: The process of obtaining goods or services from external sources.
My example of Procurement: (Answers will vary, e.g., A restaurant buying fresh produce from a local farm, a car manufacturer purchasing tires from a supplier, a school ordering office supplies.)
3. Finance
What it is: Managing the money of a business.
My example of Finance: (Answers will vary, e.g., A small business owner calculating how much to pay employees, a company taking out a loan to buy new equipment, setting the price of a movie ticket.)
4. Human Resources (HR)
What it is: Managing the people who work for the business.
My example of Human Resources: (Answers will vary, e.g., A retail store interviewing candidates for a sales position, a company providing training to new hires, addressing an employee's questions about their benefits.)
Thinking Deeper
Think about your favorite restaurant or store. What is one thing they do for each of the four business functions?
(Answers will vary, examples for a pizza restaurant)
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Production: Making the pizza (preparing dough, adding toppings, baking).
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Procurement: Ordering flour, cheese, and tomatoes from suppliers.
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Finance: Calculating the cost of ingredients, managing daily sales, paying rent and utilities.
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Human Resources: Hiring new delivery drivers, training new cooks, scheduling staff shifts.
Cool Down
Cool Down: Business Basics Check
Instructions: Briefly answer the following questions to show what you learned today.
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In one sentence, define what a "business" is.
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List the four major functions of a business.
Hint: Production, Procurement, Finance, Human Resources -
Choose one of the four functions and provide a new example of what a business does within that function.