2 1.5.5 External influences Possible responses by the business to changes in: technology, legislation, the economic climate. Revision opportunity for this topic. Teacher provides examples of different (local) businesses and groups to consider the possible responses of the businesses to changes in technology, legislation and the economic cycle. Student web or primary research on local business and how external factors have influenced different sectors. Produce poster resource. 3–4 Enhancement activity – Theme 1 Consolidation of topic content. Involvement and participation in an enterprise/business national programme, such as The Real Business Challenge, Tycoon in Schools, etc., is a good strategy to enable students to contextualise the learning from this topic. The Real Business Challenge – Tycoon in Schools – National Enterprise Challenge – 5 Exam skills/end of Theme 1 exam Consolidation of topic content and development of exam technique and skills. Teacher-led input on exam technique for different styles of question. Theme 1 – mock exam. Review the ‘Analysing Meringue’ case study, available on the Pearson GCSE (9-1) Business webpage. Use SAM or EAM for exam.
12 1.2.2 Market research Types of market 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. Introduction – teacher sets up an activity where students in different groups answer the following question: ‘What is the average height of students in our class?’ Group 1 – use ruler/tape measure to calculate the average height of students in the class. Group 2 – use generic on heights to state the average height in the class (use p1 from the link; don’t worry that this is from Australia – this will be useful when assessing the merits of this data). Discuss findings. Then discuss the advantages and disadvantages of each. Students investigate different types of market research – knowledge. Student research into how social media is used to collect market research – collate class results. Reliability – teacher presentation on reliability, using work from this topic as stimulus. See the Edexcel GCSE Business Studies Student Book Building a Business, Chapter 1. Activity – measuring students or using secondary data () 13 1.2.3 Market segmentation How businesses use market segmentation to target customers: Identifying market segments: location, demographics, lifestyle, income, age Market mapping to identify a gap in the market and the competition Teacher plans to ensure that students understand market segments are groups of customers with different characteristics. Students use a series of resources looking at customers and market segments. For example, they look at the Yellow Pages or Thomson Local Directory to identify 20 different businesses and write down what type of customers these businesses might have. They match market segments with types of business, using photographs and examples. Students choose different local businesses restaurants, clothing – and construct a market map related to price and quality. Students analyse the position of different businesses on a market map. Activity – ‘Which segment? – Nuffield-BP Activity TRP (p26).
7 1.3.3 Cash and The importance of cash to a business: 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 Students look at case studies in the Edexcel GCSE Business Studies Student Book Introduction to Small Business on a T-shirt maker calculating cash-flow, and on a travel agency, explaining the uses of a business plan. Student use a series of resources including practical activities on forecasting cash-flow. Students use a large-scale simulation that enables them to input details into a cash-flow forecast and ‘run’ a business for a year, responding to possible changes in circumstances that affect cash-flow. Students estimate and evaluate cash-flow using a case study. Students analyse the features of a good business plan. See the Edexcel GCSE Business Studies Student Book Introduction to Small Business, Chapters 16 and 17. For a cash-flow case study see Business Case Studies for GCSE Business Studies by M. Hancock (Pearson, 2007) – Case Study 26, Peterborough United FC.
Term 4 1 Topic 1.5 Understanding external influences on business 1.5.1 Business stakeholders Who business stakeholders are and their different objectives: Shareholders (owners), employees, customers, managers, suppliers, local community, pressure groups, the government Stakeholders and businesses: How stakeholders are affected by business activity. How stakeholders impact business activity. Possible conflicts between stakeholder groups. Group activity – Moving Mountains introduces the idea of different stakeholders. Following the activity, teacher leads work to secure understanding of stakeholder model, clear the distinction between stakeholders and shareholders. Teacher uses a local example to illustrate how conflict can occur between stakeholders. For example, a local manufacturer expanding their operation. Consider how technology influences stakeholders – social media and its role in influencing business decisions. Activity – Moving Mountains – Nuffield-BP Activity TRP (pp36–38). Team activity which explores how a business can impact on different stakeholders. 2 1.5.2 Technology and business Different types of technology used by business: E-commerce Social media Digital communication Payment systems How technology influences business activity in terms of: Sales Costs Marketing mix Teacher displays the four different types of technology individually on flipchart paper. Students move around the room and add examples to each page. Teacher displays all four pages to show how technology is used extensively by all businesses. Groups are assigned one type of technology and research this to produce a report showing how their type of technology affects sales, costs and the marketing mix. SproutSocial contains useful data and a good infographic on how small businesses use social media: 3 1.5.3 Legislation and business The purpose of legislation: 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. Teacher leads class discussion on possible reasons why consumers and workers might need legal protection. Use topical news stories to illustrate – for example, online ticket touts. See the Edexcel GCSE Business Studies Student Book Introduction to Small Business, Chapter 23. Edexcel GCSE Business Studies Student Book Introduction to Small Business – Case study – Freeman’s Garage (p111).