Entrepreneurship

Entrepreneurship

Grade 11

Watch the video

https://www.youtube.com/watch?v=GDHX1IkaAzQ&t=10s

Chapter 15.1: Purchasing Management

Pages 355-360

Objectives

• Prepare a letter to an employee about purchase planning

• Analyze the amount spent on inventory by manufacturers and service providers

• Decide the steps taken when something is wrong with the shipment.

Watch the video

Information

Planning your purchases means you can buy items at a low price and sell them at a profit. Planning involves reviewing your sales objectives, then making purchasing decisions. What will you buy? From whom will you buy? How will you get the best price? How much inventory should you stock? These questions are answered as you plan your purchases.

Open Ended

Activity 1

You will do this activity individually.

Write a letter to a new employee that explains how to conduct purchase planning.

1.First decide what you should include in the letter.

2.Only the body part of the letter can be written here.

Multiple Choice

Why should you write a letter to the new employee?

• To plan his job

• To inform the employee about the importance of purchase decision

• To be able to purchase the goods

Open Ended

Why do you have to time your purchase?

Open Ended

You will discuss this in groups

Question: Why service providers and manufacturers spend a different percentage of their income on inventories?

Group 1 will investigate service providers like a hospital and

Group 2 on manufacturers like the chocolate industry.

1.Check the lists of items purchased and its requirement.

2.Do you purchase these goods frequently?

Open Ended

Which business spends the most on inventory? Why?

Open Ended

Activity 3

Group 1

You will design a invoice for the given information on a Word document.

Business: Thunderbolt Grapics

Invoice number :36584

Items: Web page design Quantity- 2nos, Price- $45 per page

Web advertisement

Quantity- 3nos, Price- $50 per pcs

Wedding card designing

Quantity- 100 pcs, Price -$25 per pcs

Creditor :Business Line

Credit terms2/10,n/30

Group 2

Investigate if there is an error on the invoice or the the shipment what steps are taken to rectify the error.

Prepare a role play to show the steps for rectification.

Multiple Choice

Effective managers follow up on how their purchased ________ performs.

• items

• goods

• inventory

Answer in chat box

Which process is taking place in this picture?

Open Ended

The main points of the lesson will be given by a volunteer.