GCSE Business Studies
Business- any organisation that makes goods or provides services.
Entrepreneur- the person organizing the business. They need to have
certain qualities in order to be successful such as determination, having
good ideas and possibly risk. They don’t necessarily need knowledge in
business like a degree but helpful if they have some understanding.
Enterprise- the project
A business start-up is a new firm operating in a market for the first time.
Reasons starting a business: money, fill a gap in the market, help
society, interest, independence etc.
Risks:
Financial- life savings could be lost,
Health- being in charge, increased effort and workload.
Strained relationships- less time spent, difficult decisions upset staff.
Rewards:
Financial
Independence- be your own boss
Self- satisfaction- business may have been developed from a hobby.
Changing consumer habits- motivation
Gaining business ideas: knowing what people want- market research,
experience, meeting people, mind mapping and observation.
Mind mapping: to find a gap in the market, 4 sectors in mind map such
as cheap, expensive, functional and luxury. There might be reasons why
there is a gap in the market because it is too risky, why would you have
and expensive but functional product?
SMART aim and objectives such as:
make a profit (money),
increase turnover (stock),
increase sales revenue (the total amount customers pay for product),
survival unlike HMV, Woolworths, JJB and Dixons
to help community
to increase market share/ be market leader.
Production methods, target market, distribution etc. will vary from
business to business even the same markets.
Target market- person who will buy their product or services, age,
gender, lifestyle, geography, income. Socio- economic grades- A to E.
Social enterprise: could be limited companies and charities. Café direct,
the big issue, give a car, Jamie Oliver’s Restaurant 15.
Divine chocolate- co owned by cocoa farmers in Ghana, fair price for
cocoa, share of profits, invested in community, farm development and
knowledge. Grown to a £8 million business.
Kamara Bennett- clothes up cycling, sessions, reduces waste, learn
skills.
Sole trader- an individual who sets up business on their own. Tradesmen-
plumbers, newsagents, hairdressers. Can employ others. Independence.
No paperwork- easy to set up.
, Choose hours but can be long. All responsibility/ decisions is theirs.
Unlimited liability- if something goes wrong, the owner is liable for the
whole amount/ problem. No one to discuss/ split with.
Partnerships- run by 2-20 people. Can share problems/ decisions. More
ideas. Shared expertise- professional organisations like solicitors/ doctors/
vets. More owners means more capital can be put into business.
Each partner legally responsible for what others do. Share profits/ losses.
Deed of partnership- brief document of agreement of money.
Unlimited liability. Arguments.
Private Limited Company- LTD-, any sized company 2+, any type.
Limited liability- you’re only responsible for your initial investment but
owned by shareholders. Banks more likely to give loan, raises business
profile and finance, attracts new investors or shareholders who will help
business.
Companies House in London- register company, more expensive, lots
of paperwork and need a solicitor. 4-6 weeks wait before operating.
Legally obliged to publish its accounts every year.
Franchisee- buys right to copy business format. This is less risky than
setting up and independent business, franchisor already has a proven
business model. More money- more people will go to them than others
as more trust it, well known and established. Earn experience and
training.
However long term and fee. Lower failure rate but still need to work
hard. Share of profits and decisions- no independence, freedoms limited.
Can only sell products of franchise.
Franchisor- sells the right to use a business idea in a specific location.
They can make more money and improve their names. Increase their
market share without size of their own firm, profitable way to expand.
Limited liability to franchisor not franchisee, they are responsible for
everyone below them, could get bad reputation.
Main outlets run by franchisor usually- not enough time and effort, main
outlets earn most profit. Smaller outlets the return on investment is 20%.
Location-
transport links,
nearness to customers( footfall)/ suppliers/ distribution,
cost of land/ premises (Dyson to Malaysia),
cheap/ skills labour (M4- telecommunications),
history/ tradition,
financial assistance and local government charges (business rates),
sales technique (phone, internet, mail)- amazon, warehouse/ high-street.
Importance of location:
business activity,
number/ location of competitors,
reliance on personal visits by customers,
methods to contact customers,
reliance on suppliers,
, Morrison’s in Newbury smaller to avoid government legislation on opening
for longer. Reliance on specialised workforce.
Stakeholder- someone involved in the business activities or interested in
success of it. Franchisees, sponsors, investors,
Suppliers- to provide ingredients that meet expectations, while making a
profit themselves.
Employees- working conditions and pay- terms of employment, career
development.
local community- the business to act responsibly not harming
environment, trading ethically, protect jobs and human rights.
owner/ shareholders- rising share price, money, sustainable healthy
dividends.
Customers- outlets like wholesalers and retailers, to maintain good
partnership to stock good products and increase sales.
Consumers- buy product, quality, taste and value. Companies exist to
create and serve customers, without them there is no need for everyone
down the line. Customers at the end of the day make the profit.
Companies have to listen to customers views to make them happy or they
will go to competitors, they influence the product. Which can affect
investors and employees for example.
Conflict-
Suppliers/ employees higher pay so higher price for customers if owner
doesn’t want to lose out.
Owners and local community- environment, trading standard, ethics etc.
Customers with suppliers- product sourcing.
Investors with owners- changing something they don’t like, they may
stop investing.
Business plan: report, main sections are marketing and forecasting.
Owners plan- reduces pressure, risks and reassures stakeholders/
banks. Helps them think about aims, market environment, marketing,
location, competition, product, distribution, funding, forecasts, resources
and timescale.
Most small business have limited resources, research is costly and can
seem a poor use of time. Some entrepreneurs ignore planning and
analysis and rely on gut instinct. Launch products they think is unique.
Poor planning is a big cause of business failure. You get to sort out
any problems before time and money, efficient, pushes you. Forces
you to think carefully. Persuade financial backers- banks for investment,
shows they know what they’re doing.
You may change mind and market is changing so business plan may
limit you- too tight. May be too loose to be of any use. Spend too long
on plan. May look good on paper but not in real world and vice versa.
Health of the economy might cause businesses to fail- recession. Actions
of competitors, a successful business constantly monitors its plan and
issues- market research regularly.
Primary/ field research collecting data that did not exist before,
questionnaires, focus group. Can be expensive and time consuming. New
Business- any organisation that makes goods or provides services.
Entrepreneur- the person organizing the business. They need to have
certain qualities in order to be successful such as determination, having
good ideas and possibly risk. They don’t necessarily need knowledge in
business like a degree but helpful if they have some understanding.
Enterprise- the project
A business start-up is a new firm operating in a market for the first time.
Reasons starting a business: money, fill a gap in the market, help
society, interest, independence etc.
Risks:
Financial- life savings could be lost,
Health- being in charge, increased effort and workload.
Strained relationships- less time spent, difficult decisions upset staff.
Rewards:
Financial
Independence- be your own boss
Self- satisfaction- business may have been developed from a hobby.
Changing consumer habits- motivation
Gaining business ideas: knowing what people want- market research,
experience, meeting people, mind mapping and observation.
Mind mapping: to find a gap in the market, 4 sectors in mind map such
as cheap, expensive, functional and luxury. There might be reasons why
there is a gap in the market because it is too risky, why would you have
and expensive but functional product?
SMART aim and objectives such as:
make a profit (money),
increase turnover (stock),
increase sales revenue (the total amount customers pay for product),
survival unlike HMV, Woolworths, JJB and Dixons
to help community
to increase market share/ be market leader.
Production methods, target market, distribution etc. will vary from
business to business even the same markets.
Target market- person who will buy their product or services, age,
gender, lifestyle, geography, income. Socio- economic grades- A to E.
Social enterprise: could be limited companies and charities. Café direct,
the big issue, give a car, Jamie Oliver’s Restaurant 15.
Divine chocolate- co owned by cocoa farmers in Ghana, fair price for
cocoa, share of profits, invested in community, farm development and
knowledge. Grown to a £8 million business.
Kamara Bennett- clothes up cycling, sessions, reduces waste, learn
skills.
Sole trader- an individual who sets up business on their own. Tradesmen-
plumbers, newsagents, hairdressers. Can employ others. Independence.
No paperwork- easy to set up.
, Choose hours but can be long. All responsibility/ decisions is theirs.
Unlimited liability- if something goes wrong, the owner is liable for the
whole amount/ problem. No one to discuss/ split with.
Partnerships- run by 2-20 people. Can share problems/ decisions. More
ideas. Shared expertise- professional organisations like solicitors/ doctors/
vets. More owners means more capital can be put into business.
Each partner legally responsible for what others do. Share profits/ losses.
Deed of partnership- brief document of agreement of money.
Unlimited liability. Arguments.
Private Limited Company- LTD-, any sized company 2+, any type.
Limited liability- you’re only responsible for your initial investment but
owned by shareholders. Banks more likely to give loan, raises business
profile and finance, attracts new investors or shareholders who will help
business.
Companies House in London- register company, more expensive, lots
of paperwork and need a solicitor. 4-6 weeks wait before operating.
Legally obliged to publish its accounts every year.
Franchisee- buys right to copy business format. This is less risky than
setting up and independent business, franchisor already has a proven
business model. More money- more people will go to them than others
as more trust it, well known and established. Earn experience and
training.
However long term and fee. Lower failure rate but still need to work
hard. Share of profits and decisions- no independence, freedoms limited.
Can only sell products of franchise.
Franchisor- sells the right to use a business idea in a specific location.
They can make more money and improve their names. Increase their
market share without size of their own firm, profitable way to expand.
Limited liability to franchisor not franchisee, they are responsible for
everyone below them, could get bad reputation.
Main outlets run by franchisor usually- not enough time and effort, main
outlets earn most profit. Smaller outlets the return on investment is 20%.
Location-
transport links,
nearness to customers( footfall)/ suppliers/ distribution,
cost of land/ premises (Dyson to Malaysia),
cheap/ skills labour (M4- telecommunications),
history/ tradition,
financial assistance and local government charges (business rates),
sales technique (phone, internet, mail)- amazon, warehouse/ high-street.
Importance of location:
business activity,
number/ location of competitors,
reliance on personal visits by customers,
methods to contact customers,
reliance on suppliers,
, Morrison’s in Newbury smaller to avoid government legislation on opening
for longer. Reliance on specialised workforce.
Stakeholder- someone involved in the business activities or interested in
success of it. Franchisees, sponsors, investors,
Suppliers- to provide ingredients that meet expectations, while making a
profit themselves.
Employees- working conditions and pay- terms of employment, career
development.
local community- the business to act responsibly not harming
environment, trading ethically, protect jobs and human rights.
owner/ shareholders- rising share price, money, sustainable healthy
dividends.
Customers- outlets like wholesalers and retailers, to maintain good
partnership to stock good products and increase sales.
Consumers- buy product, quality, taste and value. Companies exist to
create and serve customers, without them there is no need for everyone
down the line. Customers at the end of the day make the profit.
Companies have to listen to customers views to make them happy or they
will go to competitors, they influence the product. Which can affect
investors and employees for example.
Conflict-
Suppliers/ employees higher pay so higher price for customers if owner
doesn’t want to lose out.
Owners and local community- environment, trading standard, ethics etc.
Customers with suppliers- product sourcing.
Investors with owners- changing something they don’t like, they may
stop investing.
Business plan: report, main sections are marketing and forecasting.
Owners plan- reduces pressure, risks and reassures stakeholders/
banks. Helps them think about aims, market environment, marketing,
location, competition, product, distribution, funding, forecasts, resources
and timescale.
Most small business have limited resources, research is costly and can
seem a poor use of time. Some entrepreneurs ignore planning and
analysis and rely on gut instinct. Launch products they think is unique.
Poor planning is a big cause of business failure. You get to sort out
any problems before time and money, efficient, pushes you. Forces
you to think carefully. Persuade financial backers- banks for investment,
shows they know what they’re doing.
You may change mind and market is changing so business plan may
limit you- too tight. May be too loose to be of any use. Spend too long
on plan. May look good on paper but not in real world and vice versa.
Health of the economy might cause businesses to fail- recession. Actions
of competitors, a successful business constantly monitors its plan and
issues- market research regularly.
Primary/ field research collecting data that did not exist before,
questionnaires, focus group. Can be expensive and time consuming. New
