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Yasmin Tyson & Matthew St Paul

PRINCIPLES OF BUSINESS
LESSON PLAN

DATE: September 15, 2014
DURATION: 1 hour
FORM: 4
No. Of Students: 25
AGE RANGE: 14 - 15
SUBJECT: Principles of Business
TOPIC: Market Structures

OBJECTIVES: Students will be able to:
1. Define market structures.
2. Name the various market structures.
3. Identify the basic characteristics and features of each structure.
4. Examine the advantages and disadvantages of the market structures

TEACHING STRATEGIES/METHODS
Discussion
Group work
Presentations
Collaboration
Integrating Technology







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CONTENT
Market Structures
This refers to market classification according to the number of firms in the industry, types
of product, the existence or non-existence of barriers to entry and the level or degree of
competition.
There are four main market structures:
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Perfect Competition
Definition: Perfect competition refers to a market structure in which there are numerous
firms in the industry each selling a homogeneous product. There are no real examples of
perfect competition in real life. However, some markets approach near to perfection.
These include agricultural markets, stock markets and markets for foreign exchange.
Characteristics: Some of the key characteristics of perfect competition are:
Numerous buyers and firms in the industry: This means that neither one firm nor one
buyer can affect the price in the market. Each is a price-taker.
The product being sold is homogeneous: This means that there are no differences in
what each firm is selling, whether real or imagined. Thus, if a firm increases its price, its
sales will fall to zero as the buyers will buy from the other sellers who have exactly the
same product.
Perfect knowledge of the market: Both buyers and sellers know exactly what is
happening in the market. For example, if prices change they are immediately aware of it.
Perfectly elastic demand curve: This indicates that the firms cannot control price, but
can sell any amount at the ruling price.
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Firms are independent: This means that they do not take into consideration what the
other firms in the industry do.
Very high levels of competition: Competition among firms is due to the fact that there
are numerous firms selling exactly the same product, each competing for the same
consumer demand.
No advertising: Advertising is not necessary since every firm sells the same thing. In the
space of competitive and persuasive advertising there may be a small amount of
informative advertising.
Advantages of perfect competition
All buyers and sellers are treated equally.
There is only one price ruling in the market at a time and this price is not
determined by any single buyer or seller but by the market forces of demand and
supply.
Competition keeps prices lower than under other market structures.
Since the product is homogenous, sellers do not have to spend money on
advertising.
Competition between firms also forces them to be efficient.
Firms under perfect competition respond to changes in consumer demand,
therefore, the consumer is said to be sovereign or king.
Disadvantages of perfect competition
Lack of variety because an undifferentiated good is produced.
They may not be able to afford the technology that allows them to be efficient.
The number of firms in the industry makes it impossible for them to benefit from
collusion.
There may be frequent changes in price as the market forces of demand and
supply change.


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MONOPOLY
Definition and examples of monopoly
A pure monopoly is a market structure where there is only one firm in the industry,
therefore, the firm is the sole supplier of that good or service. However, in the case where
a firm controls approximately 20 per cent of a large market, it is considered a virtual
monopoly.
Examples of monopolies in Jamaica:
The St. Lucia Electricity Company
The Water and Sewage Company
Characteristics/features of monopoly
1. As indicated in the definition, there is only one firm in the industry. The importance of
this is that the demand curve for the firms goods or services will be relatively
inelastic, allowing the monopolist to exercise his monopolistic power and restrict
quantity, causing prices to rise substantially. Consumers will either have to pay the
higher price or go without the goods or services altogether.

2. There are strong barriers to entry. A barrier to entry is anything that prevents a firm
from entering an industry in the long run. Barriers to entry in this case would include
things such as legal protection and government restrictions. The importance of strong
barriers to entry is that in the long run, new firms will be kept out of the industry.

3. Monopolies are price-makers or fixers. Since they face downward sloping demand
curves, they can choose what price to charge. However, they are still constrained by
the demand curve in that, having decided on price, they must allow the demand curve
to determine the quantity. A rise in price will lower the quantity demanded.

4. The product of the monopolist is unique therefore, no close substitute for it is being
produced by any other firm.
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5. The monopolist may price discriminate, that is, charge people different prices for
the same good and/or charge different unit prices for successive units bought by a
given buyer. Those who price discriminate do so in order to earn increased profits.
Oligopoly

Oligopoly describes a market structure in which there are few large firms. They
offer the same product for sale and compete aggressively for market dominance.
Examples of firms in this market structure are telecommunications and petroleum
companies. Entry into this industry is also difficult as start-up costs are very high,
there is control of strategic raw material and information is not easily available.

Monopolistic Competition

Similar to perfect competition this market structure involves many sellers.
However, this market structure differs from perfect competition in that each firm
sells a branded product. Firms in this market structure are a monopolist for their
brand. There is freedom of entry and exist into the industry as there are no barriers
such as strategic raw material, very high start up cost and lack of information.

INTRODUCTION
Students will present their business they developed from the previous class. (There are 4
groups of 5 students each). This will be done using Prezi and VoiceThread. Each
Presentation will be 2 minutes duration. The class will rate the products using a rubric.

DEVELOPMENT
1. Students will view the Youtube video https://www.youtube.com/watch?v=9Hxy-
TuX9fs based on marketing structures. The students will be reminded to keep
their businesses in mind as the video progresses.
2. Students will now attempt to classify their businesses based on the video
presentation. Each group will be asked to login to their blog and state how they
how they feel about the business they have developed and the marketing structure
it would be classified under and why would if fall in that category.
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3. Using Animoto (each group will have at least 2 students who are familiar with
this tool) students will now develop a 2 minute marketing video for their business
using the marketing structure of their choosing from those presented. Students can
continue to do further research on the structure they have chosen to create the
video.
4. Students will present their first draft animated videos. Students will critique and
discuss based on the characteristics and features of each marketing structure they
have researched.
CONCLUSION
Students will write in their blogs what they a brief note on the four main types of market
structures. They will summarise the information presented in their lesson. The teacher
will also draw to their attention that sometimes the businesses does not fit in one specific
marketing structure but can have a few characteristics of the others.

EVALUATION
Students will complete a CSEC past paper question which will be waiting for them in
their Edmodo account. They will have two days to the next class to complete the
assignment.

FOLLOW-UP ACTIVITY
Students will finish their animated videos. The length of the video will be extended to 3
minutes. It will be submitted through Edmodo and which will be placed on the schools
Facebook page where students will judge the best video over a one week period. The
video with the most likes wins the groups a prize. The teacher will review videos before
they are posted.

REFERENCES
https://www.youtube.com/watch?v=9Hxy-TuX9fs




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Web 2.0 Tools
Web Tools Purpose How it Enhanced the Lesson
Animoto
To allow students to create an animated video
and to collaborate to market a business which
they invented based on marketing structures.
Highlighted the creative skills of the
learner and brought all learning styles
into focus. Team work was key.
Youtube
To introduce student to the various marketing
structures.
Give a visual representation from
another perspective which is
sometimes necessary for students at
that level. Hearing it from a different
source.
Prezi
To give students an opportunity to design and
create a business which would enhance their
entrepreneurial skills in the Business classroom.
The movement in Prezi got students
active from the onset of the lesson. It
set the tone for the rest of the lesson as
something interesting to look forward
to which is a little beyond Powerpoint.
Edmodo
To allow students to interact in a collaborative
environment. They will be able to monitor their
assessment and progression in the subject
discipline.
It brought students back to our online
collaborative classroom environment
which can be done in real time from
anywhere. It provided personal
feedback and an opportunity to
communicate one on one with the
teacher.
Facebook
To give students a focused way in which they
can reach a wider market to sell their products
using the market structures which they learnt.
It excited the students that their work
will be publicize and graded not just
by their peers but an opportunity for
their family to see what they have
done in class.
VoiceThread
To give students an opportunity to speak and
express themselves and their marketing skills.
Students were given the opportunity to
use their voice in novel ways to bring
about interest and a bit of humour to
their productions.

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Blog
To provide the teacher with real feedback about
the lesson and give students another avenue to
express themselves.
It gave honest feedback to the teacher
and students were allowed to share
their feelings as well as critique the
work of their classmates in a
professional manner.