Tutorial 1 Industry Application Questions PDF

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Tutorial 1 – Industry Application questionsThe point of this exercise overall is for students to think about what is involved in an industry; how industries can be very different and to relate their economic studies to think about, given the nature of the products/services being produced, why the in...

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Tutorial 1 – Industry Application questions The point of this exercise overall is for students to think about what is involved in an industry; how industries can be very different and to relate their economic studies to think about, given the nature of the products/services being produced, why the industries have the characteristics they do.

Questions: 1. Define the industry that you are applying these concepts to. Your industry ought to be pretty precisely defined and this is not necessarily an easy thing to do. Note that it can be just as important to say what is NOT included, as what is. It is OK to use the IBISWORLD definition, or any sensible attempt at defining the industry. IBISWORLD definitions are below 1 mark The industry consists of cafes and coffee shops serving food and beverages to customers on premises. The industry excludes takeaway food services, restaurant and catering services, theatre restaurants and establishments that primarily sell alcohol for consumption on and off premises.

2. What does this industry do? ie use plain English to describe, in a little bit of detail, what this industry does. 2 marks This industry is responsible for providing’s the goods and services related to coffee and similar products. This is included, but not limited to, food, beverages and hospitality. This industry also includes the operations of coffee shops and cafés by the owners. It bases itself on coffee quality, ensuring that coffee texture, taste and milk are all perfect to the coffee. 3. What are the key products in your industry? List or briefly describe a few of the most important ones. 2 marks Key products within this industry include coffee beans, which are sourced internationally from places like Arabica, Brazil, Italy and South America. There are dairy products including milk, cream and smoothies. Café’s and coffee shops also serve a variety of food and sweet products. The coffee beans and dairy are the main industry products that the services and goods surround. 4. Economics categorises all the inputs of the production process into four different categories-: Land, Labour, Capital, Entrepreneurship (reviewing the key selling industries may give you some hints as to the types of inputs needed for this industry’s production) (i)

Provide several examples of key “land” resources used in your industry. Coffee beans, cows, wheat, water, fruits. 3 marks (ii)

Provide several examples of key “capital” resources used in your industry.

Building, coffee machines, grinders, furniture, refrigeration, accessories, uniforms, lights, air conditioning, oven, toaster, storage units. 3 marks (iii) Discuss the labour resources required – how important is skilled labour? What are the types of skills required? Does the industry use much unskilled labour? Do they mainly use full time, part- time or casual labour? Skilled labour within the industry is key, due to the factors of coffee are quite volatile. Trained and skilled staff need to be utilized to create quality food and coffee to provide better products to the consumers. If the quality of the product is poor, the consumers will not return. Barista training, chef training, OHS, hygiene, customer service. Unskilled labour within this industry could be general customer service representatives such as register operators, cleaners, waitresses etc. The labour within this industry would be a majority of casual workers, under the current enterprise agreement. There would be minimal part-time and full-time workers; however, supervisors and managers would generally fall under this category. 3 marks (iv) (v)

Discuss the nature of the entrepreneurship resource-: 2 marks For example, are there many entrepreneurs who have created businesses that are currently operating in your industry? did the real entrepreneurship occur a long time ago, and the business is really run by managers for investors now? Are the entrepreneurs close to the business – for example, they run and/or work in the business or monitor it closely? Starbucks has been a successful café chain that has grown worldwide. This is a major competitor within the industry and has been so for a long time. Jerry Baldwin started up Starbucks in 1971 in the US and has now created a major player in the coffee industry. As the entrepreneurship occurred over 40 years ago, the business still has a leadership team, stakeholders and managers, but is not run by investors. All three owners are now retired and still have part ownership, yet do not take part in any business or organizational decisions.

Industry report pages that will be useful for this week-: Grain Growing – Pgs 1 – 2, 12-17 inclusive. Cafes & coffee shops – Pgs 1-2, 11-14 inclusive Supermarkets & Grocery stores – Pgs 1-2, 12-16 inclusive Water supply – Pgs 1-2, 12-15 inclusive...