Paper 1 Revision
Section 1: Business activity
1.1The role of business enterprise and entrepreneurship
1.2 Business planning
1.3 Business ownership
1.4 Business aims & objectives
1.5 Stakeholders in business
1.6 Business growth
Section 2: Marketing
2.1 The role of marketing
2.2 Market research
2.3 Market segmentation
2.4 The marketing mix
Section 3: People
3.1 The role of human resources
3.2 Organisational structures and different ways of working
3.3 Communication in business
3.4 Recruitment & selection
3.5 Motivation & retention
3.6 Training & development
3.7 Employment Law
, Section 1: Business activity
Topic Ambe
Red Green
Content r
Points to include
1.1 The role of business enterprise and entrepreneurship
The purpose of business activity and enterprise
spotting an opportunity, developing an idea for a business, satisfying the needs of
customers
Characteristics of an entrepreneur
creativity, risk taking, determination, confidence
The concept of risk and reward
1.2 Business planning
The purpose of planning business activity
reducing risk, helping a business to succeed
The role, importance and usefulness of a business plan
identifying markets, help with obtaining finance, identifying resources a business
needs to operate, achieving business aims and objectives
1.3 Business ownership
The features of different types of business ownership
sole traders, partnerships, private and public limited companies
The concept of limited liability
The suitability of differing types of ownership in different business
contexts
start-ups and established businesses
1.4 Business aims and objectives
The aims and objectives of business
profit, survival, growth, providing a service, market share
How and why objectives might change as businesses evolve
Why different businesses may have different objectives
1.5 Stakeholders in business
The roles and objectives of internal and external stakeholder groups
owners, employees, customers, suppliers, government, local community
The effect business activity has on stakeholders
The effect stakeholders have on business
1.6 Business growth
Organic growth
increasing output, gaining new customers, developing new products, increasing
market share
External growth
mergers, takeovers - including horizontal, vertical, diversification
,1.1 The role of business enterprise and entrepreneurship
Why do businesses exist?
Businesses exist to satisfy the needs of customers. They provide goods and services at a
price that people are willing to pay. In return, the business will be rewarded with profit.
Once an idea for a business exists, it can be developed.
An entrepreneur may also see an existing product and spot an opportunity to develop and
improve it.
What is enterprise?
Enterprise is seeing an opportunity to provide a product or service that people are
willing to buy.
Reasons why people choose to start their own business
Reason Explanation
This means that when you start your own business, you will be able to
make decisions on your own hours, pay, duties and working
To be your own boss
conditions - unlike an employee within a business who has to do as
they are told by their boss.
For example, if you love playing the guitar as a hobby, you could start
To pursue your own
up a business as a guitar shop / guitar teacher, thus combining your
personal interests
passion with your job.
You may have lost your job and be struggling to get a new one.
To earn an income Starting your own business is a way to generate income needed for
your rent, food and bills.
For example, you might start a business that has social,
To do something positive
environmental or charitable priorities – e.g. a charity shop to raise
for society
funds for homeless people.
Businesses provide needs and wants.
Needs Wants
A car
Food
An iPhone
Water
A TV
Shelter
A chocolate bar
Clothing
A fake tan
Medicine
Etc…
Characteristics of a successful entrepreneur:
Creative
Risk taking (calculated risks)
Determined
Confident
Able to learn from past failures
, Risks and rewards involved in starting your own business:
Risks Rewards
Might have invested your own savings Possibly a higher wage / salary than
Might have given up a job with a steady previous job
income Might be able to sell the business for a
Might be very stressful / affect your health profit if it’s successful
Long hours = lack of holidays & strain on Being your own boss
personal relationships with friends & family The personal satisfaction of being
Changing consumer tastes successful
Independence – being their own boss
1.2 Business planning
Reasons why it is important to create a business plan for a new business venture:
More likely to get investors (e.g. bank, partner, shareholders).
Reduces the risk of failure because decisions are based on research (e.g. choosing the
correct price to charge after researching manufacturing costs, competitors’ prices, and
customer preferences).
To identify what resources are needed (e.g. staff, machinery, buildings and vehicles) so
that a more accurate budget / cash flow forecast can be made.
Components included in a business plan:
Component What might be included in it?
What you plan to achieve (e.g. how much revenue & profit).
Aims & objectives
SMART objectives; e.g. to make £xm profit by the end of 2020
What market research you will carry out.
Who your target audience is likely to be (typical customer).
Marketing plan
The 4Ps - which products you will sell, what prices you will set, what
advertising & special offers you’ll do, and where you’ll sell.
How many employees you’ll need.
How you will recruit the employees.
Human Resource plan
How much you’ll pay the employees.
Any training needed.
How you will make the product (or which supplier you will buy
from).
Production plan
How you will ensure quality.
Where you will locate your business.
How you will raise the money needed to set up & run the business
(sources of finance).
Calculate the break-even point (number of products you need to sell
Finance plan
to cover the costs).
Create a cash-flow forecast; estimating likely income and
expenditure for the first year.
Section 1: Business activity
1.1The role of business enterprise and entrepreneurship
1.2 Business planning
1.3 Business ownership
1.4 Business aims & objectives
1.5 Stakeholders in business
1.6 Business growth
Section 2: Marketing
2.1 The role of marketing
2.2 Market research
2.3 Market segmentation
2.4 The marketing mix
Section 3: People
3.1 The role of human resources
3.2 Organisational structures and different ways of working
3.3 Communication in business
3.4 Recruitment & selection
3.5 Motivation & retention
3.6 Training & development
3.7 Employment Law
, Section 1: Business activity
Topic Ambe
Red Green
Content r
Points to include
1.1 The role of business enterprise and entrepreneurship
The purpose of business activity and enterprise
spotting an opportunity, developing an idea for a business, satisfying the needs of
customers
Characteristics of an entrepreneur
creativity, risk taking, determination, confidence
The concept of risk and reward
1.2 Business planning
The purpose of planning business activity
reducing risk, helping a business to succeed
The role, importance and usefulness of a business plan
identifying markets, help with obtaining finance, identifying resources a business
needs to operate, achieving business aims and objectives
1.3 Business ownership
The features of different types of business ownership
sole traders, partnerships, private and public limited companies
The concept of limited liability
The suitability of differing types of ownership in different business
contexts
start-ups and established businesses
1.4 Business aims and objectives
The aims and objectives of business
profit, survival, growth, providing a service, market share
How and why objectives might change as businesses evolve
Why different businesses may have different objectives
1.5 Stakeholders in business
The roles and objectives of internal and external stakeholder groups
owners, employees, customers, suppliers, government, local community
The effect business activity has on stakeholders
The effect stakeholders have on business
1.6 Business growth
Organic growth
increasing output, gaining new customers, developing new products, increasing
market share
External growth
mergers, takeovers - including horizontal, vertical, diversification
,1.1 The role of business enterprise and entrepreneurship
Why do businesses exist?
Businesses exist to satisfy the needs of customers. They provide goods and services at a
price that people are willing to pay. In return, the business will be rewarded with profit.
Once an idea for a business exists, it can be developed.
An entrepreneur may also see an existing product and spot an opportunity to develop and
improve it.
What is enterprise?
Enterprise is seeing an opportunity to provide a product or service that people are
willing to buy.
Reasons why people choose to start their own business
Reason Explanation
This means that when you start your own business, you will be able to
make decisions on your own hours, pay, duties and working
To be your own boss
conditions - unlike an employee within a business who has to do as
they are told by their boss.
For example, if you love playing the guitar as a hobby, you could start
To pursue your own
up a business as a guitar shop / guitar teacher, thus combining your
personal interests
passion with your job.
You may have lost your job and be struggling to get a new one.
To earn an income Starting your own business is a way to generate income needed for
your rent, food and bills.
For example, you might start a business that has social,
To do something positive
environmental or charitable priorities – e.g. a charity shop to raise
for society
funds for homeless people.
Businesses provide needs and wants.
Needs Wants
A car
Food
An iPhone
Water
A TV
Shelter
A chocolate bar
Clothing
A fake tan
Medicine
Etc…
Characteristics of a successful entrepreneur:
Creative
Risk taking (calculated risks)
Determined
Confident
Able to learn from past failures
, Risks and rewards involved in starting your own business:
Risks Rewards
Might have invested your own savings Possibly a higher wage / salary than
Might have given up a job with a steady previous job
income Might be able to sell the business for a
Might be very stressful / affect your health profit if it’s successful
Long hours = lack of holidays & strain on Being your own boss
personal relationships with friends & family The personal satisfaction of being
Changing consumer tastes successful
Independence – being their own boss
1.2 Business planning
Reasons why it is important to create a business plan for a new business venture:
More likely to get investors (e.g. bank, partner, shareholders).
Reduces the risk of failure because decisions are based on research (e.g. choosing the
correct price to charge after researching manufacturing costs, competitors’ prices, and
customer preferences).
To identify what resources are needed (e.g. staff, machinery, buildings and vehicles) so
that a more accurate budget / cash flow forecast can be made.
Components included in a business plan:
Component What might be included in it?
What you plan to achieve (e.g. how much revenue & profit).
Aims & objectives
SMART objectives; e.g. to make £xm profit by the end of 2020
What market research you will carry out.
Who your target audience is likely to be (typical customer).
Marketing plan
The 4Ps - which products you will sell, what prices you will set, what
advertising & special offers you’ll do, and where you’ll sell.
How many employees you’ll need.
How you will recruit the employees.
Human Resource plan
How much you’ll pay the employees.
Any training needed.
How you will make the product (or which supplier you will buy
from).
Production plan
How you will ensure quality.
Where you will locate your business.
How you will raise the money needed to set up & run the business
(sources of finance).
Calculate the break-even point (number of products you need to sell
Finance plan
to cover the costs).
Create a cash-flow forecast; estimating likely income and
expenditure for the first year.
