Unit guide for Unit 1-Introduction to Small Business

Transcription

1 Introduction Business Studies EDEXCEL GCSE in Business Studies Unit guide for Unit 1-Introduction to Small Business This unit is measured by examination and is worth 25% of your qualification This guide is a checklist of what you will be covering in this unit with an outline of the objectives and key terms you will need This guide will help you organise your revision notes. What will I learn? While studying the first two units of this course you are likely to learn a lot of new things. You will be introduced to the world of small businesses and will look at what makes someone a successful business person. You will find out how to develop an idea and spot an opportunity, and turn that into a successful business. You will understand how to make a business effective and manage money well. You will also see how the world around us affects small businesses and all the people involved. Student Expectations To be on time for lessons and equipped (folder for notes, pen, paper, calculator) To stay focussed think about the needs of other learners. To meet all deadlines. To keep folder and book neat and tidy so it is an aid not a hindrance to learning. To act on subject next steps to help you improve each assessment. To seek help from your teacher or the subject leader about any aspects of this course (hgf@emanuel.org.uk) To read the business news weekly. To read the background notes provided for the course before and after each lesson. To keep track of your key terms, log your progress on your chart To seek other ways of learning (such as receiving feeds from websites such as To enjoy your subject, be enquiring and challenging! GCSE Business Studies-Year 10 course guide and learning objectives/key terms 1 of 15

2 Summary of course Unit % Marks Time Unit 1 introduction to small business (year 10) 1.1 Spotting a business opportunity 1.2 Showing enterprise 1.3 Putting a business idea into practice 1.4 Making the start-up effective 1.5 Understanding the economic context 25% 40 Compulsory unit, externally assessed - 45 minutes Unit 2 - Investigating Small Business (Year 11) (Content as Unit 1) 25% 40 Compulsory unit controlled assessment Unit 5 Introduction to economic understanding (Year 11) 50% 90 Compulsory unit - Externally assessed - 90 minutes Summary of assessment To prepare you for EDEXCEL assessment you will receive extended learning for each unit and a unit test for each sub unit. This will be assessed by your teacher and yourself/peers to help you develop and understand the assessment requirements for the GCSE. GCSE Business Studies-Year 10 course guide and learning objectives/key terms 2 of 15

3 Useful websites BBC Bite size Rapid Revision Business blog Business studies online Tutor2U BBC News Federation of Small Businesses The Business Channel Dragons Den British Franchise Association Bized Business Link Business Plans / Starting-up Enterprise and Entrepreneurs Federation of Small Businesses Times Working Lunch GCSE Business Studies-Year 10 course guide and learning objectives/key terms 3 of 15

4 Topic 1.1 Spotting a business opportunity Content coverage/ key questions Learning outcomes What is a business? To be able to state what a business does. Understanding customer needs. To be able to state why customer needs are central to a business. Analysing customers. To be able to identify customers. To understand the types of customers that are being targeted. To understand the position of a business in order to spot a gap in the market. Analysing competitors. To be able to recognise the importance of competitors in business planning. To be able to state at least three potential strengths and three weaknesses of competitors that might affect business planning. Adding value. To understand the meaning of the term added value. To be able to recognise added value in three examples of products. The options available in starting up a business. To recognise that there are different options available in starting up a business. To understand the main principles of a franchise. To be able to state at least two advantages and two disadvantages of a franchise. To recognise the importance of location in setting up a business. Have you learnt/achieved? Yes/No/Go over GCSE Business Studies-Year 10 course guide and learning objectives/key terms 4 of 15

5 Topic 1.1 Spotting a business opportunity-key terms Key Term Definition/explanation Example Business Entrepreneur Supplier Customer Consumer Markets Customer needs Market research Primary (field) research Surveys Respondents Questionnaire Focus groups GCSE Business Studies-Year 10 course guide and learning objectives/key terms 5 of 15

6 Topic 1.1 Spotting a business opportunity-key terms Key Term Definition/explanation Example Secondary (desk) research Qualitative data Quantitative data Market segment Price sensisitive Market map Gap in market Product Brand Added value USP Franchise Franchisee Franchisor GCSE Business Studies-Year 10 course guide and learning objectives/key terms 6 of 15

7 Topic 1.2 Showing enterprise Content coverage/ key questions Learning outcomes Have you learnt/achieved? Yes/No/Go over What is enterprise? To be able to state at least four features of being enterprising. To understand the difference between a good and a service. To understand how mind maps can be used by entrepreneurs to spot opportunities. Being creative and enterprising. To understand the role of creative thinking in business enterprise. To be able to identify key questions that entrepreneurs ask. Invention and innovation. To be able to state clearly the difference invention and innovation. To understand the steps that an entrepreneur can take to protect ideas and products. Calculated risk. To recognise that business involves degrees of risk. To appreciate that business can also bring rewards. To understand how to balance out the risk reward ratio. Enterprise skills Evaluate the importance of judging the outcome and viability of a start-up. Give examples of business mistakes that were part of the process of learning to succeed Explain the importance of planning, thinking ahead, seeing opportunities, having drive and determination making connections, using mind maps to collect thoughts and see opportunities List the qualities shown by entrepreneurs GCSE Business Studies-Year 10 course guide and learning objectives/key terms 7 of 15

8 Topic 1.2 Showing enterprise-key terms Key Term Definition/explanation Example Enterprise Risk Goods Services Creative thinking Competitive advantage Deliberate Creativity Lateral thinking Blue skies thinking Invention Innovation Patent Copyright Trademarks Calculated risk Downsize Upsides Driven Mind map GCSE Business Studies-Year 10 course guide and learning objectives/key terms 8 of 15

9 Topic 1.3 Putting a business idea into practice Content coverage/ key questions Learning outcomes Have you learnt/achieved? Yes/No/Go over Business objectives. To be able to state at least three financial and three non-financial objectives for starting up a business. Entrepreneur qualities To be able to state at least two qualities shown by entrepreneurs Costs and revenues. To be able to state a definition of revenue, fixed costs, variable costs, price, total cost and profit. To state two ways in which a new business might forecast sales. Explain how to determine fixed and variable costs Differentiate between price and cost and the concept of profit Explain how profit is the difference between the total revenue generated over a period and the total costs Evaluate the impact of profits and losses on a business and its owners Forecasting cash flow To understand the difference between cash flow and profit. To understand the difference between a cash flow forecast and a cash flow statement. To be able to complete a cash flow forecast table. To identify at least four factors that affect cash flow. To understand how poor cash flow can lead to business failure. To understand the use of the business plan in planning cash flow. Obtaining finance. To be able to state at least three different sources of finance for a new business. To recognise the difference between short-term finance and long-term finance. GCSE Business Studies-Year 10 course guide and learning objectives/key terms 9 of 15

10 Topic 1.3 Putting a business idea into practice-key terms Key Term Definition/explanation Example Objectives (Financial and non) Revenue Turnover Sales volume Fixed costs Total costs Variable costs Profit Loss Cash Cash flow Cash flow forecast Inflow Outflow Net cash flow Opening balance Closing balance Trade credit Stock Business plan Key Term Definition/explanation Example GCSE Business Studies-Year 10 course guide and learning objectives/key terms 10 of 15

11 Finance Long term Short term Share Personal savings Share capital Shareholders Venture capitalists Loan Security Mortgage Dividend Retained profits Leasing Overdraft Factoring Marketing mix Price Product Promotion Place GCSE Business Studies-Year 10 course guide and learning objectives/key terms 11 of 15

12 Topic 1.4 Making the start-up effective Content coverage/ key questions Customer focus and marketing mix. Learning outcomes To understand that a focus on the needs of the customer is essential to business success. To recognise the main elements of the marketing mix. To be able to identify key elements of the marketing mix in different contexts. Limited liability. To understand the principle of liability. To be able to state the difference between limited and unlimited liability. To appreciate how the extent of liability can influence decision-making on the type of business organisation chosen by an entrepreneur. State the differences between sole trader and private limited company status Have you learnt/achieved? Yes/No/Go over Start-up, legal and tax issues. To recognise the importance of an appropriate trading name for a business. To appreciate why accurate record keeping is important to a business. To understand the main taxes a small business will have to pay VAT, corporation tax, income tax and National Insurance contributions. Customer satisfaction. To give a definition of customer satisfaction and customer service. To be able to state at least three benefits to a business of high levels of customer service. To be able to understand the importance of repeat business and how customer service and customer satisfaction play a role in securing repeat business. Recruitment. To understand the key stages in recruiting employees to a business. To understand that both skills and attitude are important in the selection process. To appreciate that employing staff is governed by laws relating to race, sex, age and disability. GCSE Business Studies-Year 10 course guide and learning objectives/key terms 12 of 15

13 Topic 1.4 Making the start-up effective-key terms Key Term Definition/explanation Example Sole trader Unlimited liability Limited liability Companies Records HRMC VAT National insurance contributions Corporation tax Customer service Customer satisfaction Repeat purchases Job applicant Job description Person specification Application form Curriculum vitae Motivation GCSE Business Studies-Year 10 course guide and learning objectives/key terms 13 of 15

14 Topic 1.5 Understanding the economic context Content coverage/ key questions Learning outcomes Demand and supply. To understand that a market is made up of buyers and sellers. To understand that the price of a good is determined by the interaction of demand and supply. To recognise that a shortage will lead to a rise in price and a surplus to a fall in price. To be able to recognise the difference between a goods market and a commodity market. To appreciate that changes in commodity prices can affect small businesses. Interest rates. Exchange rates. To understand that interest is the payment made for a loan/received for savings. To understand how changes in interest rates can affect small businesses. To understand that the exchange rate is the price of acquiring a foreign currency. To be able to calculate simple exchange rate conversions using dollars, pounds and euros. To understand that changes in exchange rates affect buyers from abroad and sellers to foreign countries differently. Business cycle. To provide a definition of economic activity. To be able to recognise that the level of economic activity changes over time. To be able to state how different stages in the business cycle might affect different small businesses. Stakeholders. To be able to provide a definition of the term stakeholder. To be able to recognise the key stakeholders in a number of small business contexts. To be able to state the basic rights and responsibilities of different stakeholders. To understand and identify at least five possible areas of conflict between stakeholders in a business. Have you learnt/achieved? Yes/No/Go over GCSE Business Studies-Year 10 course guide and learning objectives/key terms 14 of 15

15 Topic 1.5 Understanding the economic context-key terms Key Term Definition/explanation Example Commodities Commodities market Demand Supply Shortage Surplus Goods market Interest rate Variable Fixed Bank of England Exchange Rate Export Import Business cycle The economy Economic growth Recession Stakeholder GCSE Business Studies-Year 10 course guide and learning objectives/key terms 15 of 15