SIZE AND LOCATION OF A FIRM

Concept of firm and industry, factors determining size of firm
Factors limiting firm size and production decisions

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

- Define firm and industry with comprehensive examples
-Distinguish between firm and industry using local examples
-Identify and explain factors determining firm size
-Analyze number of employees as size determinant
-Examine volume of output and area covered
-Evaluate capital investment and market size factors
-Assess level of technology impact on firm size
-Classify firms as small, medium or large using criteria

- Brainstorming on firm vs industry concepts
-Case studies on sugar companies (Mumias, Sony, Chemelil)
-Analysis of salt mining firms (Magadi Soda Company)
-Group work on transport industry examples
-Discussion on employee numbers in different firms
-Examination of output volumes and premises size
-Analysis of capital investment requirements
-Classification exercises using local business examples

Textbook, local business examples, charts, case studies
Textbook, transport industry examples, service business cases, charts

Trendy Business Studies Form 3 Pg 18-19

SIZE AND LOCATION OF A FIRM

Government policies and location factors - comprehensive analysis
Transport networks, security and localization concepts

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

- Analyze government policy effects on production
-Examine taxation and legal compliance requirements
-Identify and explain factors influencing firm location
-Analyze nearness to raw materials importance
-Examine supply of skilled, semi-skilled and unskilled labor
-Discuss nearness to market considerations
-Evaluate availability of social amenities
-Assess auxiliary services and infrastructure needs
-Examine fuel, power and water source requirements

- Discussion on government tax policies and regulations
-Case studies on illegal product restrictions
-Analysis of location factors using Figure 2.1
-Examination of heavy materials transport costs
-Discussion on perishable goods location needs
-Group work on labor type requirements
-Analysis of social amenities for employee morale
-Case studies on banking and insurance services
-Discussion on power and water availability

Textbook, government policy examples, Figure 2.1, infrastructure maps
Textbook, transport maps, security examples, agricultural cases

Trendy Business Studies Form 3 Pg 20-22

SIZE AND LOCATION OF A FIRM

Advantages and disadvantages of localization
Delocalisation policy and implementation

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

- Identify and explain employment creation through localization
-Analyze service industries development benefits
-Examine subsidiary industries creation
-Discuss economies of scale benefits
-Evaluate development and urbanization advantages
-Analyze congestion and overpopulation problems
-Examine increased crime rate issues
-Discuss adverse environmental problems
-Evaluate unbalanced regional development effects
-Assess massive unemployment possibilities

- Discussion on employment opportunities creation
-Analysis of specialized service industries growth
-Case studies on subsidiary industries development
-Group work on large-scale production benefits
-Examination of infrastructure development
-Discussion on rural-urban migration effects
-Analysis of congestion and health hazards
-Case studies on crime and prostitution increases
-Examination of environmental pollution problems
-Discussion on regional development imbalances

Textbook, employment data, environmental examples, urban planning cases
Textbook, government policy documents, rural development cases

Trendy Business Studies Form 3 Pg 23-24

SIZE AND LOCATION OF A FIRM

Advantages and disadvantages of delocalisation
Economies of scale - internal economies comprehensive analysis

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

- Analyze balanced economic development benefits
-Examine raw materials market creation
-Discuss employment creation in many parts
-Evaluate service delivery to rural areas
-Assess urbanization acceleration benefits
-Analyze social problems reduction
-Examine difficulty in attracting required personnel
-Discuss challenges in accessing essential services
-Evaluate pollution and social evils spread
-Assess tax burden on government and taxpayers

- Discussion on balanced economic development
-Analysis of local raw materials market creation
-Case studies on rural employment creation
-Group work on rural service delivery improvement
-Examination of rural urbanization acceleration
-Discussion on reduced social problems
-Analysis of personnel attraction difficulties
-Case studies on essential services access
-Examination of pollution spread to rural areas
-Discussion on government incentive costs

Textbook, rural development examples, cost-benefit analysis
Textbook, business examples, machinery illustrations, financial cases

Trendy Business Studies Form 3 Pg 25

SIZE AND LOCATION OF A FIRM

External economies and specialization benefits

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

- Define external economies and their sources
-Analyze easier access to skilled labor pools
-Examine efficient infrastructure benefits
-Discuss auxiliary services availability
-Evaluate easy access to raw materials
-Analyze mutual consultations and collaborations
-Examine decentralization and disintegration economies
-Distinguish horizontal and vertical decentralization
-Discuss textile industry and jua kali examples
-Analyze publishing industry specialization

- Discussion on external economies concept
-Analysis of labor pool availability
-Case studies on infrastructure sharing
-Examination of banking and insurance services
-Group work on raw materials access
-Discussion on industry collaboration benefits
-Analysis of horizontal decentralization examples
-Case studies on vertical decentralization
-Examination of textile industry specialization
-Discussion on publishing industry processes

Textbook, industry examples, infrastructure maps, specialization cases

Trendy Business Studies Form 3 Pg 27-28

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

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

Trendy Business Studies Form 3 Pg 40

PRODUCT MARKETS

Essential features and product market definition
Types of product markets overview

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

- Identify presence of sellers and buyers
-Examine commodity for sale requirements
-Analyze acceptable medium of exchange
-Define product markets comprehensively
-Classify markets by area, commodity and scale

- Discussion on market features
-Analysis of seller-buyer requirements
-Case studies on exchange mediums
-Group work on product market definition
-Classification exercises on market types

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

Trendy Business Studies Form 3 Pg 40-41

PRODUCT MARKETS

Pure competition - sellers, buyers and products
Pure competition - restraints and factor mobility

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

- Explain many sellers and buyers concept
-Analyze individual seller/buyer market impact
-Define homogeneous products
-Examine product similarity requirements
-Discuss buyer preference absence

- Discussion on many sellers/buyers
-Analysis of individual market impact
-Case studies on homogeneous products
-Group work on product similarity
-Examination of buyer indifference

Textbook, competition examples, product cases
Textbook, factor examples, mobility cases

Trendy Business Studies Form 3 Pg 41

PRODUCT MARKETS

Pure competition - costs and market knowledge
Perfect competition vs pure competition

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

- Analyze absence of transport costs
-Examine complete market knowledge
-Discuss information availability
-Evaluate no excess demand/supply
-Assess barriers to entry/exit absence

- Discussion on transport cost absence
-Analysis of complete knowledge
-Case studies on information flow
-Group work on market equilibrium
-Examination of entry/exit freedom

Textbook, transport examples, information cases
Textbook, comparison charts, theory examples

Trendy Business Studies Form 3 Pg 42

PRODUCT MARKETS

Criticism of perfect competition
Monopoly definition and characteristics

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

- Analyze homogeneous product rarity
-Examine consumer variety preferences
-Discuss large-scale operation tendencies
-Evaluate firm location realities
-Assess government interference presence

- Discussion on perfect competition limitations
-Analysis of product variety needs
-Case studies on scale economies
-Group work on location factors
-Examination of government intervention

Textbook, criticism examples, reality cases
Textbook, monopoly examples, Figure 3.1

Trendy Business Studies Form 3 Pg 42-43

PRODUCT MARKETS

Causes of monopoly - ownership and technical factors

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

- Analyze factor ownership monopoly
-Examine production technique ownership
-Discuss exclusive technical know-how
-Evaluate resource control effects
-Assess capital requirement barriers

- Discussion on ownership monopoly
-Analysis of technique control
-Case studies on technical know-how
-Group work on resource control
-Examination of capital barriers

Textbook, ownership examples, capital cases

Trendy Business Studies Form 3 Pg 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

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

Trendy Business Studies Form 3 Pg 47

PRODUCT MARKETS

Oligopoly - collusion and kinked demand curve
Kinked demand curve analysis

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

- Analyze collusion and cartel formation
-Examine profit maximization strategies
-Define kinked demand curve
-Discuss price rigidity explanation
-Evaluate elastic vs inelastic curves

- Discussion on collusion benefits
-Analysis of cartel formation
-Case studies on kinked demand
-Group work on price rigidity
-Examination of Figure 3.2

Textbook, collusion examples, Figure 3.2, graph papers
Textbook, price examples, elasticity cases

Trendy Business Studies Form 3 Pg 47-48

PRODUCT MARKETS

Pertinent issues - monopoly insensitivity and hoarding
Pertinent issues - government protection and liberalization

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

- Analyze customer insensitivity problems
-Examine impersonal service attitudes
-Discuss hoarding and overcharging
-Evaluate artificial shortage creation
-Assess "take it or leave it" mentality

- Discussion on monopoly problems
-Analysis of customer treatment
-Case studies on hoarding practices
-Group work on artificial shortages
-Examination of service attitudes

Textbook, monopoly cases, hoarding examples
Textbook, protection examples, liberalization cases

Trendy Business Studies Form 3 Pg 48-49

PRODUCT MARKETS

Pertinent issues - cartels and overcharging
Pertinent issues - business integrity and honest practices

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

- Identify cartel operations
-Analyze matatu operator examples
-Examine petroleum product sellers
-Discuss disproportionate price increases
-Evaluate new entrant prevention

- Discussion on cartel practices
-Analysis of matatu operations
-Case studies on petroleum cartels
-Group work on pricing patterns
-Examination of market barriers

Textbook, cartel examples, matatu cases, petroleum industry
Textbook, integrity examples, ethical cases

Trendy Business Studies Form 3 Pg 49

PRODUCT MARKETS

Pertinent issues - product differentiation and advertising
Learning activities - market identification

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

- Analyze differentiation problems
-Examine customer retention strategies
-Discuss misleading advertisements
-Evaluate false information problems
-Assess honest advertising practices

- Discussion on differentiation issues
-Analysis of advertising problems
-Case studies on misleading ads
-Group work on honest advertising
-Examination of ethical marketing

Textbook, advertising examples, marketing cases
Market visit guides, observation sheets

Trendy Business Studies Form 3 Pg 49

PRODUCT MARKETS

Learning activities - trader interviews

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

- Interview local traders
-Determine trader market types
-Analyze business operations
-Examine pricing strategies
-Assess customer relations

- Trader interview activities
-Data collection exercises
-Analysis of business practices
-Group work on findings
-Examination of market behavior

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

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

Trendy Business Studies Form 3 Pg 46-47

CHAIN OF DISTRIBUTION

Four-level channels and product distribution patterns
Choosing distribution channels - cost, availability and business factors

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

- Analyze four-level channel complexity
-Examine agricultural produce distribution
-Discuss farmer-cooperative-board-retailer chains
-Analyze locally produced agricultural goods
-Examine locally manufactured goods distribution
-Evaluate imported goods distribution patterns

- Discussion on four-level channels
-Analysis of Figures 4.7, 4.8, 4.9
-Case studies on agricultural marketing
-Group work on manufacturing distribution
-Examination of import channels
-Practical examples of all product types

Textbook, Figures 4.7-4.9, product examples
Textbook, channel selection examples

Trendy Business Studies Form 3 Pg 47-48

CHAIN OF DISTRIBUTION

Product nature and market development factors
Financial strength, reputation and competitive factors

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

- Analyze product nature impact on channels
-Examine high unit value products
-Discuss perishable goods distribution
-Analyze standardization effects
-Examine market development stages
-Evaluate new vs established product channels

- Discussion on product characteristics
-Analysis of value and perishability
-Case studies on standardization
-Group work on market development
-Examination of product lifecycle
-Practical examples of product-channel matching

Textbook, product examples, market cases
Textbook, financial examples, competitive cases

Trendy Business Studies Form 3 Pg 49-50

CHAIN OF DISTRIBUTION

Choice of specific intermediary within channels
Pertinent issues - HIV/AIDS prevalence and fatigue problems

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

- Analyze extent of coverage requirements
-Examine continuity guarantee importance
-Discuss intermediary reputation factors
-Evaluate other products handled
-Analyze effectiveness and reliability
-Examine credibility and trading standards

- Discussion on intermediary selection
-Analysis of coverage requirements
-Case studies on reputation factors
-Group work on effectiveness measures
-Examination of reliability factors
-Practical examples of selection criteria

Textbook, intermediary examples, selection cases
Textbook, health examples, safety cases

Trendy Business Studies Form 3 Pg 51

CHAIN OF DISTRIBUTION

Child labor and environmental degradation issues
Bribery, corruption and ethical business practices

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

- Analyze child labor temptations in distribution
-Examine under-age employment illegality
-Discuss children's rights violations
-Analyze environmental degradation from trucks
-Examine pollution from distribution activities
-Evaluate proper worker employment practices

- Discussion on child labor issues
-Analysis of rights violations
-Case studies on environmental damage
-Group work on pollution prevention
-Examination of proper employment
-Practical examples of responsible practices

Textbook, child labor examples, environmental cases
Textbook, corruption examples, ethical cases

Trendy Business Studies Form 3 Pg 52

CHAIN OF DISTRIBUTION

Learning activities, research and assessment

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

- Conduct field research on local distributors
-Identify distributor types in local area
-Interview distributors about operations
-Organize debate on distributor necessity
-Analyze distribution challenges
-Evaluate distribution effectiveness and importance

- Field research activities
-Distributor identification exercises
-Interview local distributors
-Debate organization and participation
-Analysis of distribution value
-Comprehensive assessment activities

Research guides, interview forms, debate materials, assessment tools

Trendy Business Studies Form 3 Pg 52-53