◄Unit 7: Leadership and famous peopleTopic 10►

Unit 8: Business

  • Unit 8: Business

    Key Unit Competence: To use language learnt in the context of 

    Business.

    Introductory activity: Observe the picture below and guess what 

    they relate to.

    You will develop these skills
    • Use ‘if’, ‘unless’, ‘need to’, ‘be able to’, ‘have to’, ‘must’.
    • Use the third conditional.

    • List the vocabulary of entrepreneurship, costs, production, marketing.

    Quick check

    Have you ever thought about how important businesses are in Rwanda?

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    When you complete your education, you will want to get a job. 
    Many of you will be employed in businesses and you will need to 
    understand aspects of business such as production, profits, costs 

    and management.

    The business world is very important in any country. It provides 
    people with goods and services that they want to buy. Businesses 
    also provide jobs, for which people get paid. The more businesses
    there are in a country and the more people have jobs, the more 
    people there are earning wages; these people can buy the goods 

    and services that they desire.

    Entrepreneurship

    Read about entrepreneurs

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    People do not always choose to work in the informal sector. Sometimes 
    their earning opportunities are scarce. They may be unable to find a job 
    in the formal business sector. They may only be able to work a few hours 

    a day through temporary employment for low wages.

    To be an entrepreneur, you need to be an innovator. You must be willing 
    to take risks. You should also be able to lead and manage people. You 
    must be a good communicator. Unless you take risks, you will not keep 
    ahead of the market. If you cannot communicate, you will not persuade 

    people to buy your product, or to be productive if they work for you.

    Entrepreneurs must deal with a large number of challenges that 
    employees do not have to think about, and in return entrepreneurs expect 
    to make a profit. Entrepreneurs see an opportunity and, at their own 

    financial risk, set up a business to make the most of that opportunity

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    Activity 1: Comprehension

    After reading the case study above, answer the following questions.
    1. Why did Eugene start his own furniture company?
    2. What were the disadvantages?
    3. What would have happened if Eugene became ill? 

    4. Why do you think Eugene used other people’s wood to start with?

    Grammar focus 

    Conditional clauses

    A conditional clause is one that states that an action can only take place if a 
    certain condition is fulfilled.     Conditional clauses make use of ‘if’, ‘unless’, 
    ‘need to’, ‘be able to’, ‘have to’ and ‘must’.
    Example:
    • If I find her address, I’ll send her an invitation. (I cannot send the invitation if 
    I do not find the address.)
    In the text about entrepreneurs, the following two sentences contain examples 
    of conditional clauses:
    • Unless you take risks, you will not keep ahead of the market. 

    • If you cannot communicate, you will not persuade people.

    Activity 2: Complete conditional clauses

    Fill in the space with a word that will complete the conditional clause.
    1. ______ you come this way, the principal will see you now.
    2. I will be back tomorrow ______ my car breaks down. 
    3. ______ I were a rich man, I would buy a new house.
    4. I __________ use my bike to take the produce to market.

    5. If you want to go to university, you _______ pass your exams.

    Read about the characteristics of an entrepreneur
    Entrepreneurs are very special people because they have the courage and 
    willpower to try to start a business. They are not afraid of failure. There 
    are certain characteristic that entrepreneurs need to possess.
    • They need to be disciplined. Entrepreneurs are focused on making their 
    enterprises work. Successful entrepreneurs are disciplined enough to 
    take steps every day towards achieving their objectives.
    • They need to be confident. The entrepreneur does not ask questions 
    about whether they can succeed or whether they are worthy of 
    success. They have confidence in everything they do.
    • They need to be open-minded. Entrepreneurs realise that every event 
    and situation is a business opportunity. They have the ability to look at 

    everything around them and focus it toward their goals.

    • They need to be self-starters. Entrepreneurs know that if something 
    needs to be done, they should start it themselves. They are proactive, 
    not waiting for someone to give them permission.
    • They need to be competitive. Many companies are formed because an 
    entrepreneur knows that they can do a job better than someone else can. 
    • They need to be determined. Entrepreneurs are not put off by their 
    defeats. They are determined to make all their efforts succeed, so will 

    try and try again until they succeed. 

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    Activity 3: Describe an entrepreneur, using the third conditional

    1. Reread the eight characteristics of an entrepreneur above. 
    2. Using ‘if’, ‘unless’, ‘need to’, ‘be able to’, ‘have to’ or ‘must’ clauses, make a 
    sentence about each characteristic and write it in your exercise book. For 
    example: If an entrepreneur is not disciplined, he or she will not be able to 

    organise a business properly.

    Activity 4: Discuss the characteristics of an entrepreneur

    1. Read the following case study and discuss which entrepreneurial 
    characteristics would have been most important for Josianne.
    2. List the characteristics in order of importance.

    3. Compare your list with the rest of the class.

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    The costs of a business

    Being in business is about making a profit. The entrepreneur needs 
    to sell his or her goods for the right price – enough to cover all the 

    costs, but not so much that the customer won’t buy.

    Read about the costs of running a business

    Businesses aim to produce goods that they sell at a higher price than it 
    cost them to produce. They do this in order to make a profit. If the cost of 
    producing goods is greater that the amount received from selling the 
    goods, the business is running at a loss. Profit is an incentive for 
    entrepreneurs. The entrepreneur can reinvest the profit in the business or 

    take it out for personal use.

    Before deciding on the selling price for goods, a business must carefully 
    work out its costs. Some of these costs are fixed, while others are variable
    costs. We add these together to get the cost of production. The costs of 
    production can also be divided into material costs and selling costs. 
    Material costs are the costs of tools, materials and shipping. Selling costs 

    are the costs of marketing and distribution.

    Fixed costs + Variable costs = Cost of production (Total costs)

    Fixed costs are costs that must be paid regardless of how much is 
    produced and sold. Examples of these are rent, monthly salaries, loan 
    repayments and utilities (electricity, water and telephone). Fixed costs are 
    also known as overheads.

    Variable costs are costs which change according to how much is 
    produced. Examples of these are materials used in production and hourly 

    wages.

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    Activity 5: Calculate profit and loss

    Work out the following:
    1. A farmer is selling trays of fruit and wants to make a profit of RWF 10. The 
    cost price of the product is RWF 15.What must the selling price be?
    2. What would happen if the farmer sold his trays of fruit for RWF 9?
    3. If the farmer sold the fruit for RWF 9, would he be able to stay in business for 

    very long? Write your answer using an ‘if’ clause.

    Activity 6: Write an essay explaining production costs

    One of your friends wants to start a small business. Write a short composition of 
    about a page, explaining what production costs are, and why it is important to 

    be able to calculate them.

    Drawing up a business plan

    Before starting a new business, an entrepreneur must compile a 
    business plan. A business plan is a formal statement of business 
    goals and how the entrepreneur plans to reach these goals. The 
    plan may also contain background information about the 

    organisation or team attempting to reach these goals. 

    Read about business plans

    A business plan contains a description of who runs the business, the 
    market (people who will buy the product or service) and the competition 
    (other businesses offering similar products or services). There is also a 
    financial management section explaining how the business will make a 

    profit and pay off debt.

    If an entrepreneur wants people to invest in his/her new business, or 
    wants to borrow money from a bank, then he/she needs to have a 
    business plan. The investors or bank will read the business plan very 

    carefully before deciding whether or not to loan money.

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    Activity 7: Summarise a business plan
    Write a summary of the contents of a business plan, explaining why each part is 

    important.

    Describing production

    Read about the production process

    Producers make the goods and provide the services that people buy or 
    use. Without production, there would be very little in the shops for you to 
    buy! Production is the process by which inputs (raw materials and semi-finished 

    products) are made into finished goods that can be bought.

    An example of a semi-finished product is a roll of cotton cloth used by a 
    clothing factory. The cloth has already been spun from cotton thread in a 
    cloth manufacturing factory. The clothing factory buys the cloth and 
    makes clothes that are sold in a shop. The clothing factory also uses 

    buttons and belts that are produced in other factories.

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    The different suppliers of raw materials and semi-finished products that 
    are needed for production are known as the supply chain. Once the 
    finished goods have been made, they must be packaged and distributed 
    to shops, where they can be sold. The different types of distributors that 
    make goods available for consumers to buy are known as the distribution 

    chain. These include factory outlets, warehouses, wholesalers and shops.

    Consumers and producers need each other. Consumers need producers to 
    make the goods and services that they buy and use. Producers need 
    consumers to buy the goods and services they want to sell. All businesses 
    produce something: a hairdresser produces hair cuts, a farmer produces 

    agricultural produce

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    Activity 8: Describe the production process of a baker

    In your group, discuss the production process of a baker producing bread. 
    1. What time do you think he or she had to get up and start baking bread if 
    you are to have fresh bread for breakfast? 
    2. What ingredients does the baker have to buy and how does the supply chain 
    work?
    3. Make a timeline of the steps involved in getting fresh bread into the shops 
    each day.
    4. Compare your timeline with the rest of the class.
    5. Write four sentences beginning with ‘if’ to explain what will happen if the 
    baker does not manage the production process. For example: If the baker 

    does not get up early, the bread will be late getting to the shops.

    Describing marketing

    Read about marketing

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    Marketing includes branding and advertising. Branding means appearing 
    in the media, sponsoring local events and making sure people remember 
    the business’s name. Some businesses design powerful logos that people 
    will recognise. For example, fast food chains and petrol stations have 
    logos that can be recognised from a distance. This helps with marketing 

    because people can identify the brand.

    To advertise a product, a firm needs to make use of the media. The media 
    is any form of mass communication and it includes both print and online 
    advertising.There are many different types of media that can be used in 
    advertising such as:
    • Print advertising, such as newspapers, magazines and flyers.
    • Outdoor advertising, such as billboards and events.
    • Broadcast advertising, such as the TV, radio or Internet.
    • Covert advertising, which is when an actor uses a product in a movie.
    • Celebrity advertising, which is when a famous celebrity uses a product 

    in public.

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    Activity 9: Design a poster for a product

    With your group, choose a product and design a large poster to advertise it. You 
    will need a large sheet of card, pencils, coloured pencils, glue, scissors and old 
    magazines. Here are some tips to help you with your design: 
    1. Use a large piece of paper or cardboard.
    2. Design your poster before you make it – plan where each element will go on 
    the page.
    3. Use bright colours and preferably one large picture that will attract attention 
    from a distance.
    4. Use very few words, but include all the necessary information that will make 
    people want to buy your product.
    5. Use large letters for the main points that you are trying to get across.

    6. Use a fun design, but keep the poster easy to read.

    Grammar focus

    The third conditional clause

    We can use third conditional clauses to talk about conditions that are impossible 
    because they are in the past and we cannot change at all. impossible because 
    they are in the past     and we cannot change what has happenedat all. This 
    conditional case refers back to regrets, sorrows, wished for but non achieved 

    situations.

    Here, we use Past perfect in the if-clause and the Conditional perfect in the Main 

    clause.

    Examples:
    • She would have become a teacher if she had gone to university.
    • If I had paid more attention in class, I would have understood the lesson.
    The third conditional can also be expressed by removing IF and invert the 
    auxiliairy HAD with its subject. Thus, the equivalent sentence always starts with 
    HAD. 
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    Activity 10: Use third conditional clauses
    Complete the following sentences in the third conditional by using ‘if’ clauses:
    1. ___________ , I would have gone to the party.
    2. ____________ , we could have had a picnic.
    3. ____________ , I would have known it was going to rain.
    4. ____________ , she would have said hello.
    5. They _____________ accepted your ideas _________ you had explained more 
    clearly.

    Describing a business

    Businesses can be very small or very large. Many entrepreneurs 
    start a small business due to a crisis in their personal lives, like 
    losing their job or failing at school. Sometimes, these small 
    businesses grow into huge groups, like the Virgin Group of 
    Companies, started by Richard Branson.

    Read about a successful entrepreneur

    Sir Richard Branson is an English businessman and investor. He is best 
    known as the founder of Virgin Group, which comprises more than 400 

    companies. He was born in 1950, in Surrey, England. 

    Richard Branson struggled in school and dropped out at age 16; it was 

    this decision that lead to the creation of Virgin Records. 

    From his entrepreneurial success with Virgin Records, he went on to create 
    more companies. He is now a billionaire. One of the interesting companies 
    in the Virgin Group is Virgin Galactic, a space-tourism company. Branson 
    is also known for his adventurous spirit and sporting achievements, 

    including crossing oceans in a hot air balloon.

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    Activity 12: Talk about a Rwandan business

    1. Research and find out about a business in Rwanda. This can be in your own 
    community or elsewhere. 
    2. Write a report of your findings to share with the rest of the class. Make use 

    of the conditional wherever possible.

    Recounting the development of a business

    In this unit, we have learned about entrepreneurs and the world of 
    business. We have discovered that entrepreneurs have a very 
    important role to play in our economy. They take risks, which are 
    not always successful. Not all new businesses are successful. Here 

    are the stories of some entrepreneurs

    Read about a business that succeeded

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    His business continued to grow and today Daniel has a team of ten ‘Mr 
    Fixits’ working with him. He no longer works from home; he has an office 
    and has registered as a private company. Over time, Daniel began to 
    make a name for himself as the local ‘Mr Fixit’ and had more work than 

    he could handle. 

    He hired someone to help him. Sometimes, he feels sad that he now has a 
    lot of paperwork to do and cannot spend so much time doing the thing 

    he loves – fixing things.

    Read about a business that failed

    When Seth left school, he found it difficult to get a job. His father 
    suggested that Seth join him in his successful grocery store. All went well 
    for the first year. Seth learned about the business and his father kept tight 

    control of expenditure. 

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    Activity 13: Discuss the success and failure of businesses

    In your pairs, take turns to recount the experiences of Daniel and Seth. Why do 

    you think the one business succeeded while the other one failed?

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    Corporate social responsibility is about improving the living 
    conditions of local communities and being as eco-friendly as 
    possible. For example, the ICT firm, Dell, once came up with plan 
    to sell more PCs by informing its customers that the company 
    would plant a certain number of trees for each unit bought. The 
    firm knew that trees are crucial in absorbing the greenhouse gases

    that pollute the air and cause global warming. 

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    Activity 14: Talk about CSR in your district

    1. In your groups, suggest CSR projects that would improve the lives of people 
    in your community. 
    2. Propose CSR projects that would help to protect the environment.

    3. Report your findings to the rest of the class.

    Vocabulary, spelling and pronunciation

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    Assessment

    1. Define the meanings of the following terms.
    a) production
    b) marketing 
    c) business plan (3 marks)
    2. Write three sentences about business using either ‘if’, ‘unless’, 
    ‘need to’, ‘be able to’, ‘have to’ or ‘must’ sentences. (3 marks)
    3. Complete the following sentences:
    a) If you ________ spent more time on the project, you _________ 
    have made fewer mistakes.
    b) If I __________ seen him in the office, I __________ have 
    told him to call you. (4 marks)
    4. Briefly explain why we need entrepreneurs in Rwanda. (5 marks)
    5. Discuss how using the characteristics of an entrepreneur 
    could help you in your daily life. (5 marks)

                                                                       Total (20)

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    ◄Unit 7: Leadership and famous peopleTopic 10►