LESSON PLAN 2-20 thru 2-23-12 SPH

COMPETENCY: 3.00 Explain economic foundations relevant to the SEM Ind. industry.

OBJECTIVE: 3.03 Discuss the free enterprise system.

EQ: What is meant by free enterprise system? EQ: What is the advantage of owning a franchise?

EQ: What is the difference between needs and wants? EQ: What is the meaning of personal selling?

DAYS 1 & 2 (2/20 and 2/21-12) WARM-UP: Chose Quia activities related to 3.00 to warm-up

ACTIVITY 1: Using slide show on 3.03 and notes - complete the exercise below:

A / Encourages people to start & operate business with ltd. Govt. involvement / Risk
B / Cannot operate a movie theater in residential area / Free Enterprise System
C / The potential for loss or failure / Freedom of ownership
D / $$$'s earned after expsenses have been paid / Adv. Of entrepreneurship
E / Rivalry between businesses to gain as much of the ttl. Market share as possible / Adv. Of entrepreneurship
F / Helps maintain reasonable prices and improved products / Disadvantage of entrepreneurship
G / Forces business to operate in an efficient manner / Profit
H / Potential for increased income / Competition
I / Long hours of operation / Competition
J / Allows mkt. to determine $$'s thru S & Demand / Restriction on business ownership
K / Independence to make key business decisions / Competition
L / Freedom to chose a house, job or business / Free Enterprise System

ACTIVITY 2: Using slide show on 3.03 and notes - complete the exercise below:

A / Business owned/operated by 1 person / Partnership
B / Life of business is ltd. To life of owner / Franchise
C / Business owned/operated by two people / Partnership
D / Ease of start-up / Partnership
E / Financing is responsibility of sole owner / Corporation
F / Business owned by stockholders / Franchise
G / Freedom in making business decisions / Sole proprietorship
H / Taxed like sole proprietorship ( 5 or less owners) / Sole proprietorship
I / Life of the business is unlimited / Sole proprietorship
J / If one partner dies, the business is dissolved / Sole proprietorship
K / Offer shares of stock to general public / Subchapter "S"
L / Combined resources and knowledge / Sole proprietorship
M / Partner is liable for debts up to amt. invested / Corporation
N / Taxed heavily / Franchise
O / Business with an established name / Corporation
P / Name recognition and common products / Limited partnership
Q / Fees may be expensive / Public corporation

ACTIVITY 3:

NAME / DESCRIPTION / # U.S. / # Foreign / # Co. owned stores / Franchise Fee / Royalty Fee (on-going) / Cash liquidity Required / Location of Corp. Hdqrts.

Franchise information hunt –Have students use the Entrepreneur Magazine web site(www.entrepreneur.com) to research a specific franchise opportunity on the Franchise Zone link and/or Entrepreneur’s Franchise 500â link.

Based on the information the student has learned, do they think this franchise would be an attractive, money making venture for them? They should explain their answer in the space below.

ACTIVITY 4: Student is to list 12 businesses in Durham - name of street or road for address and to their best of his/her knowledge, list if the business is a sole proprietorship, franchise, partnership or corporation. Include all types of business ownership in your listing.

ACTIVITY 5:

ü  Entrepreneur research – Have students select an entrepreneur in the SEM field to research and create a (10 slide PowerPoint presentation to share with the class - look up tips on the internet on how to create interesting slide shows - - note how many words should be on a slide. Too many words will cause your audience to go to sleep!) Examples may include Oprah Winfrey, Bill Gates, Bob Johnson, Dave Thomas, etc.

DISCUSSION ON EXERCISES and SHARING OF PPT SHOWS.

TEST ON WEDNESDAY on OBJECTIVE 3.00

DAY 3 (2/22/12) WARM-UP: Chose Quia activities related to 3.00 to warm-up

ACTIVITY 1: Test on Objective 3.00 Page 2

ACTIVITY 2: As student completes testing, he/she will view the ppts slides on the class website for Objective 4.01

COMPETENCY: 4.00 Develop customer service skills needed in the SEM industry.

OBJECTIVE: 4.01 Explain the importance and types of selling.

ACTIVITY 3: Distinguishing between needs and wants.

What do you need? What do you want? Need vs. want.

A need is anything necessary or required to live. For example, we all need food to survive.

A want is an unfulfilled desire. For example, tickets to a Carolina Panthers football game.

Purpose: To help participants distinguish between personal needs and wants, and consider how things are used or wasted. View the items listed below and check if that would be a need or want for you. Check if you think the item is typically wasted or thrown away.

ITEM / NEED / WANT / Wasted/Trash? / Not Wasted
Cellphone
Candy
Bread
Soap
Water
Fruit
Shoes
Healthcare
Cars
electricity
computer
soil
bicycle
heat
sun
rain
family
Friends

Discuss how fulfilling the needs/wants of one person can create trash/garbage for another person.

Discuss ways that "trash" from 1 person might be used by another person - give examples. PG 3

COMPETENCY: 4.00 Develop customer service skills needed in the SEM industry.

OBJECTIVE: 4.01 Explain the importance and types of selling.

DAY 4 (2/23/12) WARM-UP:

In your opinion - name the best selling item listed below:

Brand of best selling plasma TV ______

Brand of best selling soft drink ______

Which MLB team sells the most tickets ______

Which NFL team sells the most merchandise______

What group has sold the most albums ______

What individual has sold the most albums ______

What movie has sold the most tickets ______

What is the best selling chocolate bar ______

Which Pizzeria in the US sells the most pizzas ______

What is the best selling automobile in the US ______

ACTIVITY 1:

ü  In one paragraph, student is to describe his/her best experience with a salesperson (or waitress/waiter)

ü  In one paragraph, student is to describe his/her worst experience with a salesperson (or waitress/waiter)

Randomly select students to share their experiences.

DISCUSSION.

ACTIVITY 2:

1. Why do you like certain commercials?

2. Why do you dislike certain commercials?

3. What things in a commercial make you want to buy a product?

4. Have you ever bought anything just because of a commercial you saw? Did the product do what the commercial said it would?

5. How can commercials make their products look better than the rest while still being honest?

DISCUSSION

ACTIVITY 3

Telemarketing::

1. How often does your family receive a call from a telemarketer? Pg. 4

2. What do you think is the appropriate way to deal with telemarketers?

3. Arrange the dialogue below in the appropriate sequence for a telemarketing call:

1st, etc. / Caller/Prospect / Dialogue
"Oh, I guess you don't want me calling you at home?"
"Hello"
"Er, well I am sorry we are not allowed to do that"
"No"
"Well, know you know how I feel."
Oh, gee I cannot talk right now. Why don't you give me your home number and I can call you back?
"Hi, would you be interested in switching over to TM1 long distance service?

Ms. Herman will ask two students to pretend that one is the caller and one is the prospect and make and receive the call in front of the class in the correct order.

ACTIVITY 4

Determine which type of selling is being used below - choices are telemarketing, direct mail, personal selling, on-line selling and business to business selling

a / Goodyear tires makes sales pitch to Hendrix Racing Team
b / Panthers fan buys sweatshirt in fans store from John, the salesman
c / Marsha purchases a camera on e-bay.
d / Subway sends coupons to homes via US mail
e / Politician sets up a robot calling system asking for votes.
f / Footlocker employee helps customer trying on a pair of shoes.
g / Jane purchases most of her Christmas gifts from Amazon.com
h / Ticket agents for Durham Bulls uses telephone to sell tickets in Durham
i / Time Warner Cable makes sales presentation to Apt. complex owners
j / Carpet cleaning service sends ads to new homeowners.

DISCUSSION

Identify the basic principles of a free enterprise system.

1.  The free enterprise system is also referred to as private enterprise.

a.  Encourages individuals to start and operate their own business with limited government involvement.

b.  Allows the market to determine prices through supply and demand.

2.  Basic economic freedoms

a.  Freedom of ownership

i.  The ability to choose a house, car, job or business.

ii.  There are restrictions on how and where some businesses can operate. For example, the city of Wilmington might not allow a new movie production facility to be built in a residential area.

b.  Competition

i.  A rivalry between two or more businesses to gain as much of the total market share as possible.

ii.  Competition helps to maintain reasonable prices, provides consumers with new and improved products and results in a wider selection of products from which to choose.

iii.  Competition forces businesses to operate in the most efficient manner possible.

c.  Risk is the potential for loss or failure.

d.  Profit is the money earned from conducting business after all costs and expenses have been paid.

B.  Identify the advantages and disadvantages of entrepreneurship.

1.  Advantages

a.  Personal independence to make key business decisions

b.  Personal fulfillment and feeling of self-worth

c.  Potential for increased income

2.  Disadvantages

a.  Risk associated with potential loss of income PG. 5

b.  Hours can be long and often irregular

C.  Discuss the forms of business ownership.

1.  A sole proprietorship is a business owned and operated by one person. Seventy percent of all businesses in the United States are sole proprietorships.

a.  Advantages:

i.  Ease of startup

ii.  Limited government regulations including taxes. Sole proprietorships are taxed less than other forms of business ownership. PG. 5

iii.  Profits go to the owner.

iv.  Freedom in making business decisions.

b.  Disadvantages

i.  Unlimited liability. The business owner is liable for all business losses including the initial investment and the ability of the owner to pay.

ii.  Sole responsibility for all aspects of the business including skills and finances.

iii.  Life of the business is limited to the life or interest of the owner.

2.  A partnership is a business owned and operated by two or more people. Less than 10% of all businesses in the United States are partnerships.

a.  Types of partnerships:

i.  General partnership.

(a)  An agreement in which both partners agree to share equally in the profit and/or loss of the business.

(b)  Each partner is liable for all debts incurred by the business.

ii.  Limited partnership

(a)  Each limited partner is liable for any debts of the business up to the amount of his/her investment.

(b)  Limited partnerships must have at least one partner who has unlimited liability.

b.  Advantages

i.  Relatively inexpensive to start.

ii.  Combined financial resources and knowledge.

iii.  Shared management responsibilities.

iv.  Increased potential for profits.

v.  Shared responsibility for risk.

vi.  Taxed less than a corporation.

vii.  A change in ownership does not alter the continuity of the business.

c.  Disadvantages

i.  Partners can disagree on business decisions.

ii.  The decision or action of one partner is legally binding on the other partner, including financial decisions.

iii.  If one partner dies, the business is dissolved.

3.  A corporation is a business owned by stockholders.

a.  A corporation is a legal entity that is chartered by the state in which the business is located.

b.  Boards, directors and officers manage the daily operations of a corporation.

c.  The three main types of corporations include:

i.  Private (closed) corporations do not offer shares of stock for sale to the general public.

ii.  Public (open) corporations offer shares of stock for sale to the general public.

iii.  Subchapter “S” corporations are taxed like a sole proprietorship and limited to 35 or less shareholders.

(a)  Advantages

(i)  Delegation of specific management skills

(ii)  Limited liability for stockholders

(iii)  Life of the corporation is unlimited

(iv)  Easier to secure capital

(v)  Stockholders can easily enter or leave the business by purchasing or selling stock

(b)  Disadvantages

(i)  Numerous legal restrictions

(ii)  Complex to start up and dissolve

(iii)  Taxed heavily

(iv)  Complex record keeping

4.  A franchise is a business or organization with the right to use an established name and sell trademarked products. Franchises are granted to a retailer or a wholesaler for a fee.

a.  Advantages

i.  Name recognition and common products or services result in reduced liability.

ii.  Management training is typically provided by the franchisor (parent company).

iii.  Business plan is established by franchisor, modified for the location and franchisee (person purchasing the franchise).

b.  Disadvantages

i.  Freedom to make business decisions is usually limited

ii.  Franchise fees may be expensive

iii.  Supplies and products must be purchased directly from the franchisor. PG. 6

COMPETENCY: 4.00 Develop customer service skills needed in the SEM industry.

OBJECTIVE: 4.01 Explain the importance and types of selling.

.A. Explain selling.

1.  Selling is the exchange of goods and services from producers to consumers for a price.

a.  Businesses and sponsors might purchase incentives, media time, naming rights, pre-/post-game entertainment, signage, tickets (group or season), and products designed for the corporations’ target market.