Content Business Year 10 Theme 1 notes

coverage
Topic 1.1 Enterprise Why new business ideas come about:
and  Changes in technology.
entrepreneurship  Changes in what consumers want.
1.1.1 The dynamic  Products and services becoming obsolete.
nature of business  How new business ideas come about:
o Original ideas
o Adapting existing products/services/ideas
1.1.2 Risk and The impact of risk and reward on business activity:
reward  Risk: business failure, financial loss, lack of security
 Reward: business success, profit, independence
1.1.3 The role of The role of business enterprise and the purpose of
business activity:
business enterprise
 To produce goods or services.
 To meet customer needs.
 To add value: convenience, branding, quality, design,
unique selling points.

The role of entrepreneurship:

 An entrepreneur: organises resources, makes business
decisions, takes risks.
Topic 1.2 Spotting a Identifying and understanding customer needs:
business  What customer needs are: price, quality, choice,
opportunity convenience.
1.2.1 Customer
needs The importance of identifying and understanding
customers: generating sales, business survival.
1.2.2 Market The purpose of market research:
research  To identify and understand customer needs.
 To identify gaps in the market.
 To reduce risk.
 To inform business decisions.

1.2.2 Market Types of market research:

research  Methods of primary research: survey, questionnaire,
focus group, observation
 Methods of secondary research: Internet, market
reports, government reports
 The use of qualitative and quantitative market
research data

The role of social media in collecting market research

data.

The importance of the reliability of market research data.

1.2.3 Market How businesses use market segmentation to target

segmentation customers:
 Identifying market segments: location, demographics,
lifestyle, income, age
 Market mapping to identify a gap in the market and the
competition
Content Business Year 10 Theme 1 notes
coverage
1.2.4 The Understanding the competitive environment:
competitive
environment  Strengths and weaknesses of competitors based on:
price, quality, location, product range and customer
service.

The impact of competition on business decision making.

Topic 1.3 Putting a What business aims and business objectives are.
business idea into
Business aims and objectives when starting up:
practice
 Financial aims and objectives: survival, profit, sales,
1.3.1 Business aims market share, financial security
and objectives  Non-financial aims and objectives: social objectives,
personal satisfaction, challenge, independence and
control

Why business aims and objectives differ between

businesses.
1.3.2 Business The concept and calculation of:
revenues, costs  Revenue
and profits  Fixed and variable costs
 Total costs
 Profit and loss
 Interest

1.3.2 Business Interpretation of break-even diagrams:

revenues, costs  The impact of changes in revenue and costs
and profits  Break-even level of output
 Margin of safety
 Profit and loss
1.3.3 Cash and The importance of cash to a business:
cash-flow  To pay suppliers, overheads and employees.
 To prevent business failure (insolvency).
 The difference between cash and profit.

Calculation and interpretation of cash-flow forecasts:

 Cash inflows
 Cash outflows
 Net cash-flow
 Opening and closing balances
1.3.4 Sources of Sources of finance for a start-up or established small
business finance business:
 Short-term sources: overdraft and trade credit
 Long-term sources: personal savings, venture capital,
share capital, loans, retained profit and crowd funding
Topic 1.4 Making The concept of limited liability:
 Limited and unlimited liability.
the business
 The implications for the business owner(s) of limited
effective
and unlimited liability.
1.4.1 The options
for start-up and
small businesses
Content Business Year 10 Theme 1 notes
coverage
1.4.1 The options The types of business ownership for start-ups:
 Sole trader, partnership, private limited company.
for start-up and
 The advantages and disadvantages of each type of
small businesses
business ownership.

The option of starting up and running a franchise

operation:
 The advantages and disadvantages of franchising.
1.4.2 Business Factors influencing business location:
location  Proximity to: market, labour, materials and
competitors
 Nature of the business activity
 The impact of the internet on location decisions: e-
commerce and/or fixed premises
1.4.3 The marketing What the marketing mix is and the importance of each
mix element:
 Price, product, promotion, place

1.4.3 The marketing How the elements of the marketing mix work together:
mix  Balancing the marketing mix based on the competitive
environment.
 The impact of changing consumer needs on the
marketing mix.
 The impact of technology on the marketing mix: e-
commerce, digital communication.
1.4.4 Business The role and importance of a business plan:
plans  To identify: the business idea; business aims and
objectives; target market (market research); forecast
revenue, cost and profit; cash-flow forecast; sources
of finance; location; marketing mix.

The purpose of planning business activity:

 The role and importance of a business plan in
minimising risk and obtaining finance.
Topic 1.5 Who business stakeholders are and their different
objectives:
Understanding
 Shareholders (owners), employees, customers,
external influences
managers, suppliers, local community, pressure
on business
groups, the government
1.5.1 Business
stakeholders Stakeholders and businesses:
 How stakeholders are affected by business activity.
 How stakeholders impact business activity.
 Possible conflicts between stakeholder groups.
1.5.2 Technology Different types of technology used by business:
and business  E-commerce
 Social media
 Digital communication
 Payment systems

How technology influences business activity in terms of:

 Sales
 Costs
 Marketing mix
Content Business Year 10 Theme 1 notes
coverage
1.5.3 Legislation The purpose of legislation:
and business  Principles of consumer law: quality and consumer
rights
 Principles of employment law: recruitment, pay,
discrimination, and health and safety

The impact of legislation on businesses:

 Cost

Consequences of meeting and not meeting these

obligations.
1.5.4 The economy The impact of the economic climate on businesses:
and business  Unemployment, changing levels of consumer income,
inflation, changes in interest rates, government
taxation, changes in exchange rates
1.5.5 External The importance of external influences on business:
influences introducing the idea that some factors beyond the
business can impact on the business

1.5.5 External Possible responses by the business to changes in:

influences technology, legislation, the economic climate.