Edexcel Business Studies Gcse Case Study

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This topic looks at the skills needed to be enterprising. This involves asking questions and seeking answers without feeling the need for certainty. These skills could be of benefit in any workplace situation, but especially in the context of a business start-up. The objective is to encourage creative and active thinking and learning.

This topic looks at the skills needed to be enterprising. This involves asking questions and seeking answers without feeling the need for certainty. These skills could be of benefit in any workplace situation, but especially in the context of a business start-up. The objective is to encourage creative and active thinking and learning. 

Topic 1.3 Putting a business idea into practice

This topic considers the practicalities of making a business idea happen and emphasises how focus on the financial aspects should not distract from the importance of effective management of marketing and human factors.

Objectives when starting up:

••financial objectives: the range of motives for wanting to start a business including profit or income, financial security and wealth

••non-financial objectives: personal satisfaction, challenge, to help others (starting a charity)

This section looks at the personal objectives of entrepreneurs (whether stated or implied by their

actions).

The qualities shown by entrepreneurs:

••determination and initiative

•• the willingness to take risks and make decisions

•• the ability to plan and persuade

•• showing leadership

•• the role of luck in business success/failure

This can be done through a project where students interview someone who has started a business in the last five years to understand their motives, their qualities and the effectiveness of their planning.

Estimating revenues, costs and profits:

••how businesses forecast sales volumes and selling prices to estimate revenue

••how to determine fixed and variable costs

••understand the difference 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

•• the impact of profits and losses on a business and its owners

This is meant to be more realistic and challenging than the traditional approach to profit. At the start, profit is a ‘guesstimate’, not a fact.

Topic 1.3 Putting a business idea into practice

This topic considers the practicalities of making a business idea happen and emphasises how focus on the financial aspects should not distract from the importance of effective management of marketing and human factors.

Forecasting cash flows:

••understand the role and importance of cash to the operation of a business and to its long-term success

••how to estimate monthly cash inflows and outflows to determine net and cumulative cash flows

••how cash flows are affected by stock levels and credit terms

•• explain how cash flow problems can lead to business failure (insolvency)

•• appreciate the role and importance of a business plan in minimising the risk involved

This should also be set in a realistic context of uncertainty, ie reflecting the difficulty of forecasting with confidence. The technical definition of insolvency is not required. Students will not be required to produce a business plan.

Obtaining finance:

•• explain the main sources of finance for a small business start-up

•• long-term sources, such as loans, personal savings, profit, venture capital and share capital in the context of a private limited company

•• short-term sources such as overdrafts and trade credit

Invite a local bank or business link to come in and explain a recent financial package used to support

the start up of a local business Ask them to cover the key issues of revenue forecasting, cash flows, and financing.

Topic 1.4 Making the start-up effective

This topic focuses on the customer and staff, showing that success in any business is based on far more than the skills or inspiration of a single individual; business is about people, not a person.

Customer focus:

••understand that a business must anticipate, identify and meet customer needs if it is to be successful

The marketing mix:

••understand that a business will have to consider price, product, promotion and place as important elements to meet the business opportunity

••understand that different businesses will place different emphasis on the elements of the mix and that the mix can be amended to meet changing consumer needs

Although the unit focuses on small firms, big brands can provide invaluable lessons. Students can give group presentations on a brand of their choice in areas such as trainers, confectionery, or electronic products.

The importance of limited liability:

•• explain the principle of limited and unlimited liability and understand the implications of this in making a choice on the status of the business

•• the differences between sole trader and private limited company status

The focus should be on the different aims and implications of limited versus unlimited structures,

highlighting the personal risk of unlimited liability.

Start-up legal and tax issues:

••understand the need to establish a unique trading and business name

••understand the need to keep careful records, the implications of VAT, income tax, National Insurance and Corporation Tax for the business

A broad and practical outline is needed: the need to register a new business with HM Revenue and

Customs.

The key is the need for record keeping rather than extensive details on types of tax.

Topic 1.4 Making the start-up effective

This topic focuses on the customer and staff, showing that success in any business is based on far more than the skills or inspiration of a single individual; business is about people, not a person.

Effective on-time delivery and customer satisfaction:

•• explain how effective customer service includes fulfilling customer orders accurately and on-time and dealing with complaints

•• recognise the importance of customer satisfaction in the success of a business

•• the importance of repeat purchase for a business

This section should help students to understand that an innovative business idea counts for nothing

without effective delivery and customers who feel well treated. ScrewFix Direct is a positive example and a useful case study.

Recruiting, training and motivating staff:

•• the basic processes involved in recruiting staff to work in a small business

•• the importance of skill versus attitude when recruiting and training staff

••understand the importance of treating staff fairly and a simple understanding of the impact of relevant legislation, eg relating to age, sex, race and disability discrimination

Students should obtain application forms, job descriptions and person specifications from a local employer, then assess their own suitability for the job. They would not need to recall the terms, job description and person specification.

Topic 1.5 Understanding the economic context

The emphasis here is not macro-economics but the factors outside the control of the business that may prevent it from meeting its objectives (contextualisation will be particularly useful in delivery of this section).

Market demand and supply:

•• the prices of commodity markets are determined by the balance between supply and demand

•• the difference between commodity markets and normal markets

•• the effect on small firms of price changes in raw materials and energy costs

The focus on commodities is toavoid confusion over pricing inconsumer markets, eg iPods.

Commodities such as oil and copper can be very important to small firms such as plumbers.

Impact of changes in interest rates on small businesses:

••how changing interest rates affect small firms which tend to rely on overdrafts and loans for finance

•• the impact of changing interest rates on consumer spending

If possible, visit a local builder, a car showroom or an estate agent to find out the impact of changing interest rates on their business.

Impact of changes in exchange rates*:

•• explain what exchange rates are

••how changes in the £/$ or £/€ affect small firms that trade abroad or face competition from abroad

•• the impact of changing exchange rates on the price of imported and exported goods

••how to calculate exchange rates on product prices

(Questions will look only at £/$ and £/€)

Useful industries to look at are food manufacturers and retailers of products such as consumer

electronics. Press coverage and other resources can provide up-todate material.

Topic 1.5 Understanding the economic context

The emphasis here is not macro-economics but the factors outside the control of the business that may prevent it from meeting its objectives (contextualisation will be particularly useful in delivery of this section).

How do business cycles affect small businesses?

••understand that economic activity tends to rise and fall and that changes in the level of economic activity can have serious effects on small businesses

Students will not be expected to have an understanding of specific terms used in business cycles but will be expected to be familiar with the effects of changes in the rate of economic growth.

What effect do business decisions have on stakeholders?

•• that stakeholders are those groups or individuals with an interest in a business

•• recognise that business decisions have different effects on different stakeholders and the problems a business may face in meeting the demands of all stakeholders

Perhaps invite a local, businessrelated pressure group to come in to explain their objectives, methods and experiences.

В том, что этот парень был блестящим программистом, сомнений не возникало, но другие обстоятельства тогда казались более важными. Хотя Япония переживала глубокие перемены, Нуматака оставался человеком старой закалки и жил в соответствии с кодексом менбоко - «честь и репутация». Если он примет на работу калеку, его компания потеряет лицо. Он выкинул его автобиографию в мусорную корзину, даже не прочитав.

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