SIZE AND LOCATION OF A FIRM

Diseconomies of scale - internal and external
Existence of small firms and their advantages

By the end of the lesson, the learner should be able to:

- Define diseconomies of scale and their causes
-Analyze Figure 2.2 LAC curve and diminishing returns
-Examine internal diseconomies affecting single firms
-Discuss marketing diseconomies and limited markets
-Analyze management diseconomies and complexity
-Examine factor market diseconomies and shortages
-Discuss overhead diseconomies and rising costs
-Evaluate technical diseconomies and capacity utilization
-Analyze external diseconomies affecting all firms
-Examine congestion, raw material and skilled labor shortages

- Analysis of Figure 2.2 and cost curve explanation
-Discussion on average cost increases
-Case studies on marketing difficulties
-Examination of management complexity problems
-Group work on factor shortage effects
-Analysis of overhead cost increases
-Discussion on equipment underutilization
-Case studies on industry-wide problems
-Examination of congestion and traffic costs
-Discussion on power shortages and rationing

Textbook, Figure 2.2, cost analysis examples, industry cases
Textbook, small business examples, market analysis, comparison charts

Trendy Business Studies Form 3 Pg 28-29

SIZE AND LOCATION OF A FIRM

Environmental impact and health implications
Maintaining healthy environment and business responsibility

By the end of the lesson, the learner should be able to:

- Identify production activities' environmental effects
-Analyze environmental degradation from farming
-Examine desertification from deforestation
-Discuss air pollution from industrial activities
-Analyze water pollution from factory chemicals
-Examine solid waste pollution problems
-Evaluate community health endangerment
-Discuss disease vector habitat creation
-Analyze respiratory diseases from air pollution
-Examine aquatic life extermination effects

- Discussion on environmental degradation causes
-Analysis of soil fertility reduction
-Case studies on deforestation effects
-Examination of mining dust and factory gases
-Group work on water pollution sources
-Discussion on chemical drainage effects
-Analysis of garbage disposal problems
-Case studies on community health effects
-Examination of disease vector habitats
-Discussion on long-term environmental damage

Textbook, environmental examples, health data, pollution cases
Textbook, environmental conservation examples, law documents

Trendy Business Studies Form 3 Pg 30-31

SIZE AND LOCATION OF A FIRM

Pertinent issues - workers' rights and child labor
Environmental degradation, localization effects and practical applications

By the end of the lesson, the learner should be able to:

- Analyze workers' rights and human rights issues
-Examine exploitative labor practices
-Discuss meager wages and salary problems
-Evaluate employee morale and productivity effects
-Analyze industrial disturbances and strikes
-Examine fair treatment and welfare policies
-Discuss conducive work environment creation
-Evaluate women's workplace protection
-Analyze child labor exploitation problems
-Examine Children's Act and legal compliance

- Discussion on workers' rights violations
-Analysis of exploitative wage practices
-Case studies on industrial strikes
-Group work on employee welfare policies
-Examination of work environment improvement
-Discussion on women's workplace rights
-Analysis of child labor prohibition
-Case studies on Children's Act compliance
-Examination of education opportunity denial
-Discussion on ethical labor practices

Textbook, labor law documents, case studies, Children's Act
Textbook, environmental cases, urban planning examples, assessment materials

Trendy Business Studies Form 3 Pg 31-32

PRODUCT MARKETS

Introduction and meaning of market
Essential features and product market definition

By the end of the lesson, the learner should be able to:

- Define market in different contexts and applications
-Distinguish between market as meeting place and geographical area
-Explain market as price/business rate concept
-Identify essential features of any market
-Analyze contact between sellers and buyers

- Brainstorming on different market meanings
-Discussion on market contexts and applications
-Analysis of market as meeting place vs area
-Group work on essential market features
-Case studies on seller-buyer contact

Textbook, market examples, charts
Textbook, market scenarios, classification charts

Trendy Business Studies Form 3 Pg 40

PRODUCT MARKETS

Types of product markets overview
Pure competition - sellers, buyers and products

By the end of the lesson, the learner should be able to:

- Identify four main product market types
-Introduce perfect competition concept
-Outline pure monopoly characteristics
-Describe monopolistic competition features
-Explain oligopoly market structure

- Overview of all market types
-Introduction to market structure concepts
-Discussion on market characteristics
-Group work on type identification
-Preliminary analysis of each structure

Textbook, market structure charts, examples
Textbook, competition examples, product cases

Trendy Business Studies Form 3 Pg 41

PRODUCT MARKETS

Pure competition - restraints and factor mobility
Pure competition - costs and market knowledge

By the end of the lesson, the learner should be able to:

- Explain absence of artificial restraints
-Analyze price determination freedom
-Examine factor mobility requirements
-Discuss alternative factor uses
-Evaluate geographical factor movement

- Discussion on restraint absence
-Analysis of free price determination
-Case studies on factor mobility
-Group work on alternative uses
-Examination of factor movement

Textbook, factor examples, mobility cases
Textbook, transport examples, information cases

Trendy Business Studies Form 3 Pg 41-42

PRODUCT MARKETS

Perfect competition vs pure competition
Criticism of perfect competition

By the end of the lesson, the learner should be able to:

- Distinguish perfect from pure competition
-Analyze degree differences
-Examine adjustment time differences
-Discuss economic analysis purposes
-Evaluate theoretical importance

- Discussion on competition distinctions
-Analysis of adjustment mechanisms
-Case studies on market adjustments
-Group work on theoretical purposes
-Examination of economic analysis

Textbook, comparison charts, theory examples
Textbook, criticism examples, reality cases

Trendy Business Studies Form 3 Pg 42

PRODUCT MARKETS

Monopoly definition and characteristics
Causes of monopoly - ownership and technical factors

By the end of the lesson, the learner should be able to:

- Define monopoly market structure
-Identify single producer characteristic
-Analyze price fixing by supplier
-Examine substitute product absence
-Discuss entry restrictions and price discrimination

- Discussion on monopoly definition
-Analysis of single producer effects
-Case studies on monopoly pricing
-Group work on substitute analysis
-Examination of price discrimination

Textbook, monopoly examples, Figure 3.1
Textbook, ownership examples, capital cases

Trendy Business Studies Form 3 Pg 42-43

PRODUCT MARKETS

Causes of monopoly - market and business factors
Advantages and disadvantages of monopoly

By the end of the lesson, the learner should be able to:

- Analyze market size limitations
-Examine government restrictions
-Discuss firm merging effects
-Evaluate restrictive practices
-Assess business combination impacts

- Discussion on market size effects
-Analysis of government protection
-Case studies on firm mergers
-Group work on restrictive practices
-Examination of business combinations

Textbook, market examples, merger cases
Textbook, advantage/disadvantage examples

Trendy Business Studies Form 3 Pg 43-44

PRODUCT MARKETS

Monopolistic competition - definition and features
Monopolistic competition - product differentiation

By the end of the lesson, the learner should be able to:

- Define monopolistic competition
-Analyze competition-monopoly combination
-Examine many buyers and sellers
-Discuss similar but differentiated products
-Evaluate real-life market relevance

- Discussion on monopolistic competition
-Analysis of market combination
-Case studies on buyers/sellers
-Group work on product differentiation
-Examination of real market examples

Textbook, competition examples, Kenyan cases
Textbook, differentiation examples, brand cases

Trendy Business Studies Form 3 Pg 45

PRODUCT MARKETS

Monopolistic competition - operations and interdependence
Oligopoly - definition and characteristics

By the end of the lesson, the learner should be able to:

- Analyze free entry and exit
-Examine firm interdependence
-Discuss non-price competition
-Evaluate price setting considerations
-Assess competitive responses

- Discussion on entry/exit freedom
-Analysis of firm interactions
-Case studies on non-price competition
-Group work on price setting
-Examination of competitive responses

Textbook, operation examples, competition cases
Textbook, oligopoly examples, rivalry cases

Trendy Business Studies Form 3 Pg 46

PRODUCT MARKETS

Oligopoly features - market control and products
Oligopoly - collusion and kinked demand curve

By the end of the lesson, the learner should be able to:

- Analyze market share control
-Examine pricing and output interdependence
-Distinguish differentiated vs pure oligopoly
-Discuss product homogeneity/differentiation
-Evaluate substitute relationships

- Discussion on market control
-Analysis of interdependence effects
-Case studies on oligopoly types
-Group work on product characteristics
-Examination of sugar market example

Textbook, control examples, sugar market cases
Textbook, collusion examples, Figure 3.2, graph papers

Trendy Business Studies Form 3 Pg 47

PRODUCT MARKETS

Kinked demand curve analysis
Pertinent issues - monopoly insensitivity and hoarding

By the end of the lesson, the learner should be able to:

- Analyze price increase effects
-Examine demand decrease consequences
-Discuss consumer switching behavior
-Evaluate price decrease effects
-Assess competitor response patterns

- Discussion on price change effects
-Analysis of demand elasticity
-Case studies on consumer behavior
-Group work on competitor responses
-Examination of price stability

Textbook, price examples, elasticity cases
Textbook, monopoly cases, hoarding examples

Trendy Business Studies Form 3 Pg 48

PRODUCT MARKETS

Pertinent issues - government protection and liberalization
Pertinent issues - cartels and overcharging

By the end of the lesson, the learner should be able to:

- Analyze infant industry protection
-Examine protection abuse problems
-Discuss growth refusal issues
-Evaluate liberalization policy effects
-Assess consumer supremacy importance

- Discussion on protection policies
-Analysis of infant industry abuse
-Case studies on liberalization
-Group work on consumer rights
-Examination of policy effects

Textbook, protection examples, liberalization cases
Textbook, cartel examples, matatu cases, petroleum industry

Trendy Business Studies Form 3 Pg 49

PRODUCT MARKETS

Pertinent issues - business integrity and honest practices
Pertinent issues - product differentiation and advertising

By the end of the lesson, the learner should be able to:

- Analyze integrity requirements
-Examine honest business practices
-Discuss profitable honesty
-Evaluate long-term vs short-term benefits
-Assess ethical business conduct

- Discussion on business integrity
-Analysis of honest practices
-Case studies on ethical conduct
-Group work on long-term benefits
-Examination of sustainable practices

Textbook, integrity examples, ethical cases
Textbook, advertising examples, marketing cases

Trendy Business Studies Form 3 Pg 49

PRODUCT MARKETS

Learning activities - market identification
Learning activities - trader interviews

By the end of the lesson, the learner should be able to:

- Identify market types near school
-Analyze local market structures
-Examine trader operations
-Assess competition levels
-Evaluate market characteristics

- Field visits to local markets
-Market identification exercises
-Analysis of market structures
-Group work on trader assessment
-Examination of competition patterns

Market visit guides, observation sheets
Interview guides, data collection sheets

Trendy Business Studies Form 3 Pg 50

CHAIN OF DISTRIBUTION

Meaning of distribution and process
Classification of intermediaries - merchant vs agent traders

By the end of the lesson, the learner should be able to:

- Define distribution and explain its derivation
-Analyze the wide range of distribution activities
-Examine material handling, storage, packaging and transportation
-Explain how distribution bridges producer-consumer gap
-Describe the process from production to consumption
-Identify the role of intermediaries in distribution

- Discussion on distribution meaning and activities
-Analysis of material handling and storage
-Case studies on packaging and transportation
-Group work on producer-consumer gap
-Examination of distribution process
-Role play on intermediary functions

Textbook, distribution examples, packaging materials
Textbook, trader examples, classification charts

Trendy Business Studies Form 3 Pg 42

CHAIN OF DISTRIBUTION

Merchant traders - export/import merchants and stockist distributors
Agent traders - commission agents, factors and auctioneers

By the end of the lesson, the learner should be able to:

- Analyze export merchants and their operations
-Examine import merchants and direct importers
-Discuss stockist distributors and specialization
-Evaluate merchant traders' market assistance
-Analyze skilled staff employment by stockists
-Examine after-sale services provision

- Discussion on export/import operations
-Analysis of merchant trader functions
-Case studies on stockist specialization
-Group work on market assistance
-Examination of after-sale services
-Practical examples of merchant operations

Textbook, import/export examples, stockist cases
Textbook, Figure 4.1, agent examples

Trendy Business Studies Form 3 Pg 43

CHAIN OF DISTRIBUTION

Non-trading agents - brokers, clearing agents and warehouse keepers
Role of intermediaries and channels of distribution

By the end of the lesson, the learner should be able to:

- Define brokers and their connecting functions
-Analyze export and import broker operations
-Examine clearing and forwarding agents
-Discuss warehouse keepers and storage services
-Analyze brokerage and demurrage fees
-Evaluate lien rights of agents

- Discussion on broker functions
-Analysis of clearing agent services
-Case studies on warehousing operations
-Group work on fee structures
-Examination of lien rights
-Practical examples of non-trading agents

Textbook, broker examples, warehouse cases
Textbook, Figure 4.2, chain examples

Trendy Business Studies Form 3 Pg 44-45

CHAIN OF DISTRIBUTION

Channel levels - zero, one, two and three level channels
Four-level channels and product distribution patterns

By the end of the lesson, the learner should be able to:

- Define channel levels and intermediary numbers
-Analyze zero-level direct marketing
-Examine one-level channels and Bata example
-Discuss two-level consumer goods channels
-Analyze three-level intermediary chains
-Evaluate channel level selection factors

- Discussion on channel level concepts
-Analysis of Figures 4.3, 4.4, 4.5, 4.6
-Case studies on Bata Shoe Company
-Group work on level comparisons
-Examination of consumer goods distribution
-Practical examples of all channel levels

Textbook, Figures 4.3-4.6, Bata examples
Textbook, Figures 4.7-4.9, product examples

Trendy Business Studies Form 3 Pg 46-47

CHAIN OF DISTRIBUTION

Choosing distribution channels - cost, availability and business factors
Product nature and market development factors

By the end of the lesson, the learner should be able to:

- Analyze factors in channel selection
-Examine cost considerations in channel choice
-Discuss availability of distribution channels
-Evaluate business objectives and policies
-Analyze unique product presentation needs
-Examine relationship between policies and channels

- Discussion on channel selection factors
-Analysis of cost-benefit considerations
-Case studies on channel availability
-Group work on business objectives
-Examination of policy alignment
-Practical examples of channel choice

Textbook, channel selection examples
Textbook, product examples, market cases

Trendy Business Studies Form 3 Pg 48-49

CHAIN OF DISTRIBUTION

Financial strength, reputation and competitive factors
Choice of specific intermediary within channels

By the end of the lesson, the learner should be able to:

- Analyze financial strength impact on channels
-Examine reputation and goodwill effects
-Discuss competitor channel performance
-Evaluate consumer factors in channel choice
-Analyze transport and communication networks
-Examine financial support from channel operators

- Discussion on financial considerations
-Analysis of reputation effects
-Case studies on competitive channels
-Group work on consumer factors
-Examination of infrastructure impact
-Practical examples of support mechanisms

Textbook, financial examples, competitive cases
Textbook, intermediary examples, selection cases

Trendy Business Studies Form 3 Pg 50-51

CHAIN OF DISTRIBUTION

Pertinent issues - HIV/AIDS prevalence and fatigue problems
Child labor and environmental degradation issues

By the end of the lesson, the learner should be able to:

- Analyze HIV/AIDS prevalence in distribution
-Examine travel and family separation effects
-Discuss discipline and moral responsibility
-Analyze fatigue and accident relationships
-Examine distribution truck safety
-Evaluate operator care and scheduling

- Discussion on HIV/AIDS challenges
-Analysis of travel separation effects
-Case studies on moral responsibility
-Group work on fatigue prevention
-Examination of safety measures
-Practical examples of responsible scheduling

Textbook, health examples, safety cases
Textbook, child labor examples, environmental cases

Trendy Business Studies Form 3 Pg 51-52

CHAIN OF DISTRIBUTION

Bribery, corruption and ethical business practices
Learning activities, research and assessment

By the end of the lesson, the learner should be able to:

- Analyze bribery in distribution operations
-Examine traffic police corruption
-Discuss overloading and rule adherence
-Evaluate ethical business practices
-Analyze public interest considerations
-Examine fair play in distribution business

- Discussion on corruption problems
-Analysis of bribery effects
-Case studies on rule adherence
-Group work on ethical practices
-Examination of public interest
-Practical examples of fair business

Textbook, corruption examples, ethical cases
Research guides, interview forms, debate materials, assessment tools

Trendy Business Studies Form 3 Pg 52