step ETEET] Tefen lialsaes ff FORM 2 SA, . PLE COPY “jot for sale i| oe a Gy Commerce 4 BOY: LChamba © E Chikwaya A Kangausaru * S Makore .N Marisa * ZZvinoera | @ Pearson * ) 5 Teacher's Guide ai age 23 ,Pearson Education Africa Auto Atlantic 4th floor Hertzog Boulevard Cape Town 8001 © Pearson Education Africa All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publishers. First published in 2017 ISBN 9781776001804 Cover design by Mellany Fick Cover artwork by Alamy Stock Photo, Robertharding ‘Typesetting by Charlene Bate Printed by: DP Printmedia Its illegal to photocopy any page of this book without the written permission of the copyright holder. Every effort has been made to trace the copyright holders. In the event of unintentional omissions or errors, any information that would enable the publisher to make the proper arrangements will be appreciated.‘Commerce syllabus interpretation work plans for the year Lesson planning, Classroom organisation for effective teaching . Record keeping .-.--- +--+ +++ sree en Evaluation Topic’1 Production. Answers to Revision questions... ---.+++++srerrsrreee Topic2 Trade... .--- see eee Answers to Revision questions ..-.+---- Topic 3 Consumer protection Answers to Revision questions . . Topic4 Business organisations - - - Answers to Revision questions ..---+-s757777 7777" TopicS Enterprise - - Answers to Revision questions . -----~ Topicé Finance and banking - Answers to Revision questions - - Topic 7 Insurance and assurance Answers to Revision questions .--- +7777 77 77°77" ication - Topic 8 Business communi Answers to Revision questions Topic9 Transport. --++-* Answers to Revision questions - Topic 10 Warehousing - - -- Answers to Revision questions - Topic 11 Marketing Answers to Revision questionsare: interpretation of the Commerce syllabus, ed in the Teacher's Guides lesson planning, classroom organisation, record cover planning the work for the year, keeping, evaluation and assessment. Commerce syllabus interpretation er teaches any class or form, the teacher must obtain an approved hool administration, The teacher must make an effort stand the requirements and demands of the syllabus Before any teach« subject syllabus from the scl to study, interpret and under: by following these steps- Step 1 The preamble Read the syllabus preamble. This takes you into the syllabus itself. The Commerce syllabus states that the syllabus is a four-year learning area covering content for Forms 1 to 4. The most important point to take note of is what the syllabus intends ovide, and in this preamble the syllabus intends to provide knowledge, skills, ownership of means of production, The preamble states lop and the teacher of Commerce must be able to to pr understanding, values and the values it intends to devel identify these values. In the preamble, the syllabus states the the skills that the learners must be equipped with, such as practical enterprise skills, value addition skills and business-related competencies. The teacher of Commerce must identify teaching methodologies that will equip learners with the stated skills and competencies in the syllabus. Some of the skills include problem solving, critical thinking, decision-making and communication among the others indicated in the syllabus. It means that the teachers must refer to the Teacher's Guides for exercises and assignments that develop the skills and competencies stated in the syllabus. The preamble is important in that i the learners. The preamble allows the teacher to link his or her teac] Taxonomies, which are: + knowledge * comprehension «application * analysis + synthesis * evaluation. rationale for studying Commerce and it introduces the syllabus to the teacher and hing to Bloom’s qT feet : the teacher's interpretation of the syllabus will help the teacher to select exercises end ssa 7 nd assignments that satisfy many of the elements of Bloom's Taxonomy. Introduction2: study the methodology and time allocation sr the principles underpinning the curriculum are indicated in this section, som! i teacher must make references to them in teaching the subject. The : an he stated in the syllabus are inclusivity, relevance, individualisation, sene3 and diversity. Suggested teaching methods are listed in the syllabus fe can use these teaching methods with the help of the Teacher's suid ‘the ; n : ied exercises that can be used with the vet methods listed in the syllabus. The teacher should take note of the time mtacated foreach form. sp Assumptions tach subject has assumptions about what the learners are already capable of and theteacher should understand how these assumptions are going to affect his or her teachin8: step 4 Cros! qhe Teacher's Gui eas that are foun during teaching and | radios, on televisions, other media platforms. The teacl are relevant. The table below shows examples of where cross-c addressed in the Learner's Book. | | | [Gersaatting theme Learner's Book page reference [information communication technology (ICT) | | s-cutting themes ide has taken into account the cross-cutting themes. These are 'd in several subjects and topics, and they need to be highlighted earning. The themes are common topics in newspapers, on in videos, in social media, on the Internet, in books and her has to bring these themes into topics if they sutting themes are Rsk and disaster management Financial Ineracy 26-31; 64-75 Human rights and responsibilities 59-62 | Celisboration 59-62 Environmental issues Enterprise skills 51-55; 58-62 Gender Heritage id 5: Aims of any indus to be meaningful and relevant, the teacher must study and Silabus ae aims of the subject syllabus. There are eight aims stated in the they have to be analysed and applied in the teaching of Commerce. | * Instance, ? the syllabus wants to enable learners to ‘promote lifelong business Introduction Mlb zamanagement skills in line with emerging opportunities and challenges of the local, national and global society’. The Teacher's Guide has developed exercises that teach learners management skills that will prepare them for life. Step 6: Syllabus objectives The teacher needs to know the syllabus objectives because these are used in assessing the cognitive development of the learners. The syllabus objectives if have covered all Bloom's Taxonomy, which means that the teacher can select activities that meet the taxonomies. Exercises, assignments, tests and examinations are based on the syllabus objectives. Step 7: Topic scope, sequence and competency matrix It is important to study how the syllabus has presented the topics, the sequencing of the learning and the competency matrices. Each topic must be taught and | assessed as teaching goes on. The Teacher's Guide and Learner's Book have covered all the topics. Each topic has cascaded the material from the simple to the complex from Form 1 to Form 4. i Step 8: Assessment | The syllabus indicates that there will be two forms of assessment, summative assessment and continuous assessment. The syllabus indicates how these assessments will be weighted when allocating the final grade of learners. Teachers yllabus in order to be able to teach and prepare learners for examinations. The syllabus indicates the scheme of assessment, continuous assessment, and summative assessment, The Teacher's Guide has provided tests that prepare learners for summative assessment and continuous assessment. should study this section of the s A teacher needs to be fully versed in the structure and breakdown of the syllabus. Every section of the syllabus is important and teachers must be able to interpret the contents of the syllabus. The next sections of this introduction assist the teacher with more important information. Work plans for the year Planning, for whatever purpose, gives you direction on what you want to do in a given period. A simple question would be, ‘What is it I want to do this year?’ It is advisable to plan at the beginning of the year so that you know what you want t do during the year. Before you plan, you should consider the following: © The National syllabus © The school syllabus "Introductionclasses you are going to teach « The The time allocated for each class . The sports you are responsible for © Ine cultural activities you are responsible for . he teacher unions or associations you belong to. fa work plan is shown below: Asample 0} E: NAMI PERIOD: Key results areas | Performance Action plan Performance (activities) _ | objectives indicators Teaching Form 1 | By the end of How are you going | Mark record book Commerce Term 1, the to achieve your showing 5 written following should —_| objectives foreach | tests... have been done: _| term? Two visits to the industrial area Learners reports on the visits. help you to determine the number of topics Yue will be Ingo! syllabus is derived from the National syllabus for ics for each term and resources available. Your school syllabus should able to teach per term. The sc the sole purpose of listing top! Lesson planning ‘an important teaching for f lesson planning bjectives that need to b ivity that helps teachers to prepare acti jor ones are to: are varied but the maj Lesson planning is .¢ achieved during the lesson from a lesson. The purposes 01 « formulate aims and ol the learners «determine behavioural select teaching and learnin select teaching methods aP| evaluate the success of the lesson keep the teacher on track, systematic and orderly. rmally has the following com! at are expected at the end of the lesson Js required for each lesson lesson | outcomes th: g material propriate for the topic 1 A lesson plan no? ponents: «the lesson topic «the lesson objectives «the assumed knowledge of learners the duration of the lesson Introduction Dethe lesson presentation: content and teaching methods * the lesson evaluation. Experienced teachers may summarise the above components, and using a computer to capture all the details of a lesson is encouraged. The selection of teaching materials is very important because a lesson must be made interesting, exciting and challenging. Commerce teachers will need to provide sample documents when learners are ‘asked to complete the documents as an example. Educational visits provide variety, and the learners can observe what is going on at the place of visit. ‘Teachers are encouraged to pl to identify the appropriate objecti Jan their lessons because planning helps teachers ves, teaching methods and teaching and learning materials, and be able to evaluate lessons and see where lessons can be improved for effective teaching. The new Comme: rce syllabus suggests 204 mber of classroom activities and teaching materials for a teacher to use. tion for effective teaching Classroom organisa’ js very important in that it creates 271 inviting and for learners. Classroom organisation focuses on the physical elements of the classroom, such as furniture, displays and location of learning materials, and takes into account the movement of the learners, especially those who use wheelchairs and walking sticks. The arrangement of furniture and | displays in a classroom help t0 create a positive learning climate, which has an impact on learning. Record keeping ¢ experts in their work keep records of w cher are: Classroom organisation appealing environment Teachers who ar‘ hat they do all the time. ‘The most important records kept by a tea * arecord of textbooks * arecord of marks © arecord of classroom assets. Record of textbooks ‘The teacher should keep a record of textbooks that have been issued to learners. ‘Tne record should indicate the title of the book, the author, the publisher and the allocated number of the textbook. The teacher should know the titles of the textbooks he or she is using for teaching purposes and the reference books in the office, Dates on when the textbooks were received and issued should be recorded 5° that there are no disputes with learners. “% Introduction @ J7 < of marks masks should be recorded, along with the test date and the title of the Marks from daily exercises should also be recorded to monitor the progress jrine learners. Assignment and examination marks should be kept in thelt own sections. All of these marks will be used for the continuous assessment Jearners, Meaningful comments should also be recorded for each ve about his or her progress, of classroom assets Record ; whenever a teacher is allocated a classroom, the teacher should keep a record of the assets in the classroom. The assets include furniture, computers, overhead projectors, curtains, cameras and equipment that will be used for teaching. Record of sporting equipment The teachers also need to keep a record of all sporting items issued to them. evaluation Evaluation is defined as an act or process that allows you to make a judgment about the value of a measure. The measure comes from assessment that is done when teachers give exercises that are going to be marked, such as tests, assignments, projects, and examinations. Assessment is measurement, but evaluation goes farther to make value judgments on learners. Teachers are therefore required to provide accurate and relevant information for a qualitative comment on learners © acomplete assessment of their learners + acomprehensive and continuous assessment of learners in order to make an unbiased evaluation. Evaluation is also done after each lesson to determine whether lesson objectives have been achieved. Other ways of teaching need to be explored if the objectives have not been achieved. Evaluating marks enables a teacher to identify and provide more help to learners who have difficulties with learning. There are different types of evaluation teachers normally use in their interactions with learners: Diagnostic evaluation Teachers use this type of evaluation when wanting to determine or ascertain Tecurring learning problems of a learner. A corrective programme will then need to be undertaken to assist the learner to overcome his or her problems or challenges in 4 particular area or topic. Unit : IntroductionFormative evaluation This evaluation is done when teachers want continuous feedback on the performance of learners. Evaluation is done during teaching or instruction. Feedback is important in that it provides reinforcement of successful learning a quickly identifies areas of weakness that require corrective measures. Tests i ‘i ‘ exercises provide direct evaluation on a daily basis. ily Summative evaluation Summative evaluation comes at the end of a teaching unit or cycle. It occurs afte A z zi 1 unit of teaching and learning, and is used to assign grades to the Learner’ output, Examinations, such as end-of-term or mid-year or end-of-year examinations, are part of summative evaluation. How the Commerce Form 2 Learner's Book meets the needs of the Zimbabwe curriculum: Units Learning objectives Learner's Book page reference Topic 1: Production Learners should be able to: Unit 1: Forms of | * explain direct and indirect production 1-6 production * differentiate between direct and indirect production * describe mass production * explain the advantages of division of labour. Unit 2: Chains of | ¢ state ways in which goods are distributed from | 6-9 distribution producers to consumers * identify factors considered when selecting channels of distribution. “ Topic 2: Trade Learners should be able to: | Unit 1: Retail * explain the functions of retailers 13-26 trade * distinguish between large- and small-scale retailers * describe the characteristics and organisation of the different types of retailers © describe the factors that must be considered when establishing a retail outlet * discuss the impact of each trend in retailing | * discuss the reasons for the survival of the srnall- scale retailer. Unit : Introduction[7 Units Learning objectives | "9 Learner's L Book page reference unit 2: Hire * explain the main features of hir vale Detain e purchase and | 26-30 © com = compare hire purchase and deferred payments identify the sources of financing for hire purchase and credit sale transactions. unit3: Discounts | + i explain the nature and purpose of trade and | 30-33 cash discounts * distinguish between trade and cash discounts. ot 4 * identify the documents used in home trade 33-40 ocuments used | © explain the importance of the documents used inhome trade in home trade @ [ist the contents of each document used in home trade «explain the functions of each document used in home trade | Topic 3: Consumer protection Learners should be able to: Units Consumer | ® identify consumer protection boards ? Protection # explain the roles of consumer protection boards boards. Topic 4: Business organisations ‘Learners should be able (0: Unity > oxplain the features of U" incorporated business | 51-55 Unincorporated units business @ examine the advantages and disadvantages of organisations ‘ted business units unincorpore’ id « distinguish betwee” sole proprietorships 2” ‘ partnerships =a y 58-59 ‘Unit 1: Management . man functions = explain the importance © functions. 59-42 - in business Unit2: Business ical considerations d society sBusiness | @ identify ethic nae ethics he role of ethics IF ps business. | sdLeaming objectives Topic 6: Finance and banking Learners should be able to: Unit 1: Managing draw up personal budgets 64-66 personal finances | ¢ discuss reasons for borrowing identify borrowing options. Unit 2; Taxation recognise the legal obligation to pay tax 66-67 analyse the need for financial advice determine the consequences of financial mismanagement. Unit 3: Banking identify the different types of banks. 67-68 systems Unit 4: describe the services offered by commercial 68-75 Commercial banks. banks Topic 7: Insurance and assurance Learners should be able to: Unit 1: Principles explain the principles of insurance. 78-80 of insurance Unit 2: identify the documents used in insurance 81-83 Documents used describe the features of each document. in insurance Unit 3: Insurance outline the procedures for obtaining an 83-85 procedures insurance policy describe the procedure in effecting a claim Unit 4: People in state the functions of brokers, underwriters, 85-87 insurance actuaries and assessors. Topic 8: Business communication Learners should be able to: Unit 1: Postal identify the agents of postal services 90-95 services describe each of the postal services. * explain the importance of various postal services \_ discuss the drawbacks of each postal service Unit : IntroductionUnits Learning objectives Learner's Book page reference Unit 2: Effective explain the importance of effective 95-97 communication communication identify enhancers of effective communication outline barriers to effective communication suggest ways of overcoming barriers to effective communication. Topic 9: Transport Learners should be able to: Unit 1: Choice of discuss factors that influence the choice of 100-101 transport transport mode. Unit 2: list the documents used in transport 101-104 Documents used outline the contents of the documents in transport explain the purpose of each document identify facilities found in a port 104-105 describe the services provided by port authorities. Topic 10: Warehousing Learners should be able to: Unit): explain the importance of warehousing. 107-108 Importance of warehousing Unit 2: Functions explain the functions of warehouses. 108-110 of warehousing Topic 11; Marketing Learners should be able to: Unit 1; Marketing | * explain market segmentation 113414 segmentation © identify criteria for market segmentation outline reasons for market segmentation. Unit 2: Marketing | © explain mass and niche marketing 114-115 approaches Unit : Introduction emeres) By the end of this top’ Expanded teaching notes rcs , learners should be able to: explain direct and indirect production differentiate between direct and indirect production describe mass production explain the advantages of division of labour state ways in which goods are distributed from producers to consumers identify factors considered when selecting channels of distribution. | d to explain the forms of production. | Use the question-and-answer metho n and indirect production. Distinguish between direct productio! Describe division of labour and specialisation. Demonstrate division of labour and specialisation through role playing. Use a class discussion to discuss and explain the advantages {and disadvantages) of specialisation. Visit a production site, s' manufacturer. Use the visit to find out: * how many workers are employed at the site | * what each worker is assigned to do + where division of labour and specialisat Make a report of your visit to the class. Define and describe mass production. entity the advantages and disadvantag' efine the chain of distribution. istri State and explain the various ways (channels) in which goods a6 se rem producers to consumers. faistabation raw line di: channels of distribution. . ine diagrams to show the stribution through the various Identify the types of goods that are suitable for di channels, wat ldentify and describe factors consi ecting channels o distribution. Topic 1: Production oe" such as a ‘uniform-making factory or a furniture on are applied at the site. es of mass production. dered when selResources * Charts Production sites Related literature ICT tools Recommended textbooks Answers to Exercises and Activities Activity 1.1 Tell the learners to do some research into local industrial and commercial businesses to find out how their production processes have been influenced by specialisation. They should provide reasons why they think each specialisation hi occurred. Exercise 1.1 1. a) Direct production: = This is the making of goods and the provision of services for your own consumption or to your own taste. — Direct production is subsistence farming or subsistence economy. - Subsistence agriculture is when farmers concentrate on growing ent food to feed themselves and their families. b) Indirect production: — This is the making of surplus goods and the provision of services on a large scale for sale to other people. = This includes commercial farming or specialisation. - Commercial farming is producing crops using modern technology and breeding farm animals on a large scale. — Specialisation occurs when an individual or company focuses on a specific aspect of a long process in producing a limited variety of gods. 2. Division of labour is a sub-division of processes into several activities, each being performed by one person. It occurs when work or trade activities are broken down into small individual tasks performed by different people. Mass production is: * the production of large amounts of standardised goods frequently using assembly-line technology + the efficient manufacturing of large quantities of distinct individual items based on division of labour, high specialisation and continuity * also known as flow production, series or serial production because the production processes are continuous. Topic 1: Production4, The main objective of mass production is to produce large quantities of goods at a low cost of production per unit. Activity 1.2 Ask the learners to use the Internet (ICT tool) to research the various definitions of ‘chain of distribution’ and the factors considered when selecting channels of distribution. Exercise 1.2 1. a) Channel 3 is best for bread because: - bread is perishable and requires a shorter route and time to distribute it ~ bread must be consumed while still fresh. b) Channel 1 is best for wine because: - wine is durable - if kept for longer periods, wine matures. c) Channel 4 is best for imported cars because: = an agent is needed to deal with all the required customs legislation and to help with the exporting and importing procedures - imported cars should not be handled by a lot of middlemen (intermediaries) because they increase the cost of handling, storage and distribution 2. a) Types of shop with distribution centres: supermarket, hypermarket, department store or multiple store b) A regional distribution centre is important because it prevents a shortage of stock in the shops. Regional distribution centres can deliver goods in a short space of time. 3. An overseas agent may be a forwarding agent who: + stores goods * completes shipping documents + arranges insurance for the goods * handles customs clearance for goods. 4. a) The role of the wholesaler in Channel 1 is to: ~ buy goods in bulk from producers ~ break bulk - store goods — provide transport ~ sell a variety of goods to the retailers. b) A wholesaler is not needed in the other channels because wholesalers increase costs (of handling, storage and distribution). With Channel 2, large-scale retailers have their own regional distribution centres to prevent shortages of goods. Topic 1: ProductionWith Channel 3, large-scale retailers have large amounts of capital to buy in bulk directly from producers and they have their own delivery vans and warehouses. Answers to Revision questions 1A 2. D 3. B aA . 7. B BA 9 =D 10. A J 6. Cc 11.a) (i) Direct production is: the production of goods and provision of services for your own consumption or to your taste subsistence farming or subsistence economy. (ii) Indirect production is: — the making of more (surplus) goods and the provision of services on a large scale for sale to other people. — commercial farming or specialisation. b) The differences between direct and indirect production: * (preetpreduction Indirect production a [Goods and services are made for your own | Surplus goods ond services are consumption. There is no trade. produced for sale to other people. There is trade. The goods produced are standardised. Goods are produced to your own taste. | This is called subsistence farming/economy. | This is called speci commercial farming. The goods produced are of high quality. More goods are produced. isation or The goods produced are of poor quality. Fewer goods are produced. Fewer human wants and needs are satisfied. More human wants and needs are satisfied. There is no variety of goods and services There is a variety of goods and services available. available. People experience @ poor standard ofving, | People enjoy a high standard of ining. | People cannot obtain allthe goods and _| People can obtain most of the goods services they want because these are and services they went because there produced on a small scale, is mass production. People do not co-operate to produce goods | People co-operate to produce goods | and provide services. There is independence | and provide services. There is inter in production. dependence in production. Production costs are high. Production costs are low. + Simple tools are used. Specialised machinery is used. Topic 1: ProductionThe productivity rate is low, The productivity rate is high. There is no speci: There is specialisation. [ There is no surplus. There is surplus. 12.a) (i) Division of labour: b) is a sub-division of processes into several activities each being performed by one person occurs when work or trade activities are broken down into small individual tasks performed by different people. (ii) Specialisation: occurs when a person is specifically trained or talented to perform a particular job ~ occurs when a person continuously does work and acquires a special ability or competency in doing the work. Advantages of division of labour or specialisation: A worker can become an expert at the job due to repetition of the tasks. Employment is according to aptitude, ability or skills learned. The rate of production increases as workers become more proficient and productive in their areas of specialisation. Time is saved in training workers (operatives) and because workers do not switch from one job to another. High-quality goods are produced. The cost of production is kept low, resulting in lower prices for the products. It improves the efficiency of production. It leads to automation (mechanisation) when workers make use of specialised machinery. It leads to the simplification of processes in which work becomes easier to perform. It leads to mass production. (Any eight) Disadvantages of division of labour or specialisation: Workers are often absent, as doing the same work every day can be boring and monotonous, which can reduce job satisfaction. The goods produced are standardised (all the same). Division of labour leads to interdependence of workers, which means that if there is a disruption in any part of the production line, there will be stoppages for all. Topic 1: Production >—_— ee. ae Mechanisation and automation have replaced workers and result in increased unemployment. - Craftsmanship is lost. — The risk of occupational diseases is increased. — Workers may find it difficult to find other work because of their specialist training. _ The tisk of industrial fatigue reduces job satisfaction and can lead to absenteeism. _ It gives the worker little or no scope for individuality. — Itleads to a lack of versatility or a limited choice of goods and services. (Any six) 13.a) Mass production is: _ the production of large quantities of standardised goods frequently using assembly-line technology the efficient manufacturing of large quantities of distinct individual items based on division of labour, high specialisation and continuity. b) Mass production is influenced by division of labour: - Processes in mass production are sub-divided into several activities each being performed by one person. — Processes are simple to perform. Mass production is influenced by specialisation: - The rate of production increases as workers become more proficient and productive in their areas of specialisation. — High-quality goods are produced. ©) Advantages of mass production: — Simplification of processes due to division oflabour Improved efficiency and productivity rates resulting from specialisation Consistency in quality of finished products - High rate of production owing to automation — Lower unit cost of production per item ~ Flow of materials, components and parts is continuous with no queuins at any stage of production _ Skills are built into the machinery, so the worker using the machinery does not need the skills _ Shorter cycle of time of production due to increased productivity rate _ Special-purpose machines have higher production and rates of output (Any eight) Disadvantages of mass production: _ Ifone machine is interrupted. the entire production line is affected. _ The machinery required to set up mass-production lines is very expensive to buy and production lines are expensive to set up. 2 Topic 1: ProductionThere is a limited Variety of goods due to standardisation. There are fewer job Opportunities (employment) because of automation. Workers are not motivated since their w (Any five) ‘ork is boring and monotonous. 14.a) A chain of distribution is: : a set of practices and activities necessa goods and to mov consumption ry to transfer ownership of e these goods from point of production to point of ' a series of inter-connected businesses (intermediaries) through which a good or service passes until it reaches the final consumer. Manufacturers use the producers-to-consumers chain of production for the following reasons: b) to reduce the manufacturer’s distribution costs to take the shortest route to make goods available to consumers ~ itis the best channel for sale of: ~ fragile goods that break easily, such as eggs and glass - perishable farm products that must be consumed while fresh, such as dairy products, meat, vegetables and fruit = goods made to order or taste, such as cakes and suits - to provide direct services. ¢) Factors considered when selecting channels of distribution; — the type of the goods to be distributed - the quantity of goods or the size of the order - the size of the business — the required speed of delivery — the costs involved - government policy - the distances involved. (Any five) 15. a) (i) Drawbacks of direct production: — Goods are produced for your own consumption only. _ There are no surplus goods for sale and therefore there is no trade. — One person or family is responsible for the entire production process. — Consumers cannot obtain all the goods they want because fewer goods are produced. — People experience poor standards of living. = A poor quality of goods are produced. _ The costs of producing goods are high. (ii) Drawbacks of mass production: — Abreakdown in one part of the assembly line causes the entire production process to stop. — Production lines are expensive to set up. Topic 1: Production & 4 (ie i,Mass-produced goods are standardised and lack variety. - Adapting to a new line of production, to make a different product, is difficult and expensive. — Often workers lack job satisfaction resulting in Low employee morale and increased levels of absenteeism and turnoves — The product must be in demand by the consumers oth go to waste. b) This channel of distribution of producer is commonly used because: — large-scale retailers have adequate capital to: — buy with cash = buy in bulk ~ buy directly from producers — build their own warehouses ~ buy delivery vans = to have their own branded and pre-packaged goods. _ large-scale retailers deliver goods on thelr own-from producers ~ the route is ideal for selling things like furniture, clothes, beer (durable goods), bread, milk (perishable goods) and a variety of groceries and household goods. +. erwise it will Jarge-scale retailer-consumer Assignment guidelines Help the leamers to choose a manufacturing business province. If possible, contact the operations manager of the business to ask whether the learners can meet with him or her to ask some questions. If the learners visit the business, remind them beforehand to bear in mind that they should try not to interrupt the business operations and to be mindful of the dangers of the particular business. If the learners are not able to visit a business, in your town, village or assist them in doing research on the Internet. ‘The leamers’ answers will vary depending on the business visited. Below is a guideline of expected answers. 1. a) The learners should answer correctly whether the business is involved in direct or indirect production. b) Direct production - Direct production is the making of goods and provision of services for your own consumption and to your own tastes. _ Direct production is also known as subsistence farming or economy. ‘The output is mainly for family requirements with little or no surplus for trade (sale). Topic 1: ProductionThe person involved in direct production must be able to handle the whole production process alone, from the initial stage of obtaining raw materials to the final finished product, hence he or she enjoys independence in production People who live under a subsistence economy experience a poor standard of living. resulting directly from a lack of variety of goods available, which in turn satisfies fewer human wants and needs. The use of simple tools (such as hoes and axes) lowers productivity rate, resulting in increased costs of production. People do not co-operate to produce goods and provide services. (Accept any) Indirect production This is the production of surplus goods and the provision of services on a large scale for sale to other people. Indirect production ts also known as commercial farming or specialisation. Commercial farming is producing crops using modern (advanced) technology and breeding farm animals with the intention of making a profit. Often, very few workers are employed due to mechanisation. Specialisation occurs where an individual or company focuses on a specific aspect of a long process in the production of a limited variety of goods and services to gain greater degree of productive efficiency. Consumers can obtain most of the goods and services they want because of mass production. Goods produced are of high quality, therefore consumers enjoy a high standard of living. _ A variety of goods and services is available to satisfy more human wants and needs. — There is inter-dependen produce goods and provide services. — Complex machinery could be used to produce standardised goods. The high productivity rate of specialised machines produces large quantities of goods at lower costs of production. depending on the company investigated. 2. The answers will vary, “ — 3. The learners should answer correctly whether the business is involved in direct or indirect production. See answer to question 13 c) on page 6 for advantages and disadvantages of mass production. Two of each must be given. ‘Answers relating to not using mass production will vary and will be specifically aimed at the type of specialised product being produced. .ce in production, where workers co-operate to Topic 1: Production ee