Basic functions and types of business To understand the difference between goods, services, needs and wants. 1 Camping decisions – have a list of for a camping weekend. Which items are needs and which items are wants? Or Goods vs services – Worksheet or mini board activity – students to categorise lists or pictures into goods and services. Extension Encourage students to identify and explain examples of and services in more complicated scenarios like a restaurant or going to the cinema. To understand the meaning of factors of production. 1 Picture of PS4 – what resources have been used to create the product? For reference – To define opportunity cost. 1 Images of takeaway/delivery options (pizza, Chinese food etc), students to explain which they would choose and why. Students to create a simple budget of money earned and money spent over the last month to realise that they have a choice to make when spending money. Explain the opportunity cost of time – the benefits of school work or playing computer games. showing a specialist in a particular area – explain the opportunity cost of their time to get to this level – To define the three sectors of primary, secondary and tertiary and give examples of types of businesses that operate in each sector. 1 – explain the sectors. Students to generate examples of businesses in each section or sorting activity putting examples under the correct heading. Explain a simple chain of production – a tree being cut down, wood made into a chair, a chair being sold in a retailer. Students to draw their own examples of a chain of production. To understand the term enterprise and 1 Pictures of famous entrepreneurs – students to guess names. Clip from
Business enterprise and entrepreneurship what is meant by an entrepreneur. Dragons’ Den or about successful entrepreneurs. Research task – students to research a famous entrepreneur – what is their business, how did they start etc. To outline the characteristics of an entrepreneur. Characteristics of an entrepreneur include being hard working, innovative, organised and willing to take a risk. 1 Students to produce a list of characteristics of entrepreneurs. Extension Students to explain which characteristic they think is the most important. This can be done using a diamond 9 template. To outline the objectives of an entrepreneur. Objectives of an entrepreneur include being their own boss, flexible working hours, to pursue an interest, earn more money, identify a gap in the market and dissatisfaction with current job. 1 Using video clips from previous lessons or the one below students to list the main objectives of an entrepreneur – Social responsibility objective – Entrepreneurs – Dynamic nature of business To understand that businesses face a constantly changing business environment. Changes in business environment include changes in technology, economic situation, legislation and environmental expectations. 2 Students to list the main external factors that impact a business. For each article students should briefly explain the impact on businesses. Economic factors
Changing objectives To understand how and why the objectives set will differ between businesses. To understand how and why the objectives set may change as businesses evolve. Reasons for differing objectives include the size of the business, level of competition faced and type of business (not-for-profit organisations). Students should consider how the objectives of larger more established businesses might differ from smaller start-up businesses, eg becoming the dominant business in the market, international expansion, increasing shareholder value and ethical and environmental considerations. 1 Students given three businesses – a local business, a national business and an international business. What would be the main two objectives that each business would set? Smaller business may focus more on survival – How might Starbucks’s objectives change over time? Do larger businesses have more ethical and environmental considerations? Why are businesses concerned with shareholder Established businesses focus on new product development to establish dominance in the market – . Is it always successful? Use of objectives in judging success To understand the success of a business can be measured in other ways than profit. 1 What were the main objectives for this business? Did the business achieve these objectives? What other methods can be used to measure success? Students create a spider diagram of how businesses may judge success. 3.1.4 Stakeholders Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources
Students to identify one clear conflict (eg shareholder objectives vs local community or customer objectives). Complete question 3c) 4 marks Paper 2 June 2013. 3.1.5 Business location Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Factors influencing the location decision of a business To understand what is meant by location. To understand the factors that influence the location decision of a business. Factors that influence where a business is located include proximity to the market, availability of raw materials, labour, competition and costs. 1 Choose a local business – Students decide on the main benefits of locating where they have. Students to consider they would buy a house/flat – what features would they look for in their ideal location? Students to create a spider diagram for the main factors that influence the location decision of a business. Complete question 1c) 6 marks Paper 1 June 2014 or 1b) 4 marks Paper 2 June 2015. To evaluate the appropriate location for a 1 Research/computer activity – students plot on a local map where they would locate a variety of businesses. Businesses could include a cinema, a theme park, a designer clothes shop, a luxury hotel, a specialist sports shop, an Ebay shop and a car factory.
variety of businesses. Students should write a paragraph justifying their location decision for each business explaining clearly why they have chosen the location and any issues that they face. Complete question 3c) 9 Paper 1 June 2015 or 3c) 9 marks June 2013. To understand why some businesses decide to locate in other countries. 1 Show figures for Show figures for Students list the main advantages of international location. Read Primark in Bangladesh. Language issues – Students list the main disadvantages of international location. Student task – you are the production director of Cadbury. You have been asked to produce a report summarising whether Cadbury should focus increasing the size of its current factories in Bournville or move all production facilities abroad to Ghana. Students complete a 9 mark exam question 2d June 2012 unit 2 paper. 3.1.6 Business planning Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources
To understand the concept of revenue, profit and loss. Recap quiz – Teacher led notes on revenues and profit and the calculations required. Reference – Basic financial calculations To calculate revenue, costs, profit and loss. 1 Students complete worksheets testing simple revenue, costs, and profit or loss calculations. Use of the old specification unit 1 papers – for example question 1ci) May 2015. 3.1.7 Expanding a business Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Methods of expansion To understand the methods used by businesses when expanding. To discuss the advantages and disadvantages of each Methods used by businesses when expanding include organic growth through franchising, opening new stores and expanding through outsourcing and external growth 4 Lesson 1 Focus on internal growth through opening new stores and e-commerce. Reference – Starter – show images of two businesses (eg a café and a global business like Starbucks). Students to explain why the local café would want to expand. E-commerce – why have Amazon been so successful?
Appropriateness of organisational structures To understand the impact that having a tall or flat organisational structure has on how a business is managed. To understand how an organisational structure may affect the different ways of communication. 2 Show – show clip in the plane loading area (around 22 mins into the programme) or with the delivery van (around 10.30 mins into the programme). Both clips illustrate situations whereby the business has expanded and the manager isn’t aware of what happens with workers loading planes/doing deliveries. Link the clips to issues of having the incorrect organisational structure. Students to generate two strategies to resolve the problems identified in the video clips. Split students into pairs. One student draws a tall organisational structure and explains the benefits, the other student does the same for a flat organisational structure. Reference – Students to play Chinese whispers to illustrate the issues faced by the organisation from having a tall organisational structure. Show – show clip about a handyman in a hotel (around 14 mins into the programme). The video clip illustrates the issues of having a wide span of control and thus a lack of control. Teacher led explanation on how organisational structures impact communication. Students generate ideas for the best methods of communication for the different organisational structures. Centralisation and decentralisation To understand what is meant by centralisation and decentralisation. To understand the benefits and drawbacks of centralisation and decentralisation for 1 Starter – – link to differences in cultures etc. Use the case study of a growing business like – what difficulties will the managers of Sprinkles face as they open more stores across the UK? Students to create a table including the definitions, benefits and drawbacks of centralisation and decentralisation. Reference –
business performance. Complete question 2c) 4 marks Paper 2 June 2013 or question 3c) 6 marks Paper 2 June 2015. 3.4.2 Recruitment and selection of employees Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources The need for recruitment To understand the difference between internal and external recruitment. To understand the benefits and drawbacks of internal and external recruitment. 2 Starter – show a clip or for The Apprentice – why does Alan Sugar want to recruit the best workers? Teacher led notes on the reasons businesses need to recruit staff, for example fill a vacancy, expansion etc. Students create a mind map of methods businesses use to recruit their employees – job centres, recruitment agencies, word of mouth, job adverts, direct and promotions. Teacher explanation of the difference between internal and external recruitment – students mark next to their previous list of which methods are internal recruitment and which are external. Show – why would a business use a recruitment agency? Link to a benefit of external recruitment. Why might an external recruitment policy be a good option in ? Group work – split the class into groups focusing on the benefits of either internal or external recruitment. Each group to create a list of 2-3 benefits. Each group shares one benefit with another group. Complete question 1d) 9 marks Paper 2 June 2014.
Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Importance of motivation in the workforce To understand the benefits of a motivated workforce. Benefits of a motivated workforce include staff retention and high productivity. 2 Starter – students list three things that motivate them. Students complete motivation quiz – Teacher explanation on motivation. Reference – Students identify from the why motivation is important. Show clip from – show 8–16.30 mins. This clip shows workers who are demotivated in their job. Students to explain why they think workers are demotivated and what the impacts on the business are. Students list the main benefits of a motivated workforce. Methods to motivate staff To understand the use of financial methods of motivation (including an understanding of the main methods of payment including salary, wage, commission and profit sharing). Financial methods include an understanding of the main methods of payment including salary, wage, commission and profit sharing. Specific motivational theories (such as Maslow) will not be examined. 2 Starter – in students imagine they are the owner of Amazon. Students list the methods they would use to motivate their workers. Students to list the main of pay – to help students show a range of pictures of different types of businesses which are likely to use different payment methods, eg an office, an estate agents, a factory, a restaurant etc. Teacher led explanation on the difference between and salaries. Using the video explain briefly the idea behind . Use the video to explain the importance of pay dependent on output. Link this to commission and how workers are increasingly paid depending on the number of sales rather than output. No specific understanding of Taylor will be expected or examined. Show clip from – show 27–36 mins. This clip shows workers who are paid a higher wage. Students to identify and explain what the impacts on the motivation of workers are.
quality of service. Students swap the list of strategies they generated last lesson with their partner. The partner should consider the drawbacks/problems that might be encountered with each strategy. Drawbacks/potential issues should be written in a different coloured pen. The value of effective supply chain management To understand what a supply chain is. To explain the benefits of managing an effective supply The value of effective supply chain management includes working with suppliers to ensure that key processes are running efficiently and cost effectively, getting goods and services for the best price and value and cutting any waste and unnecessary costs to create a streamlined process and fast production times. 2 Starter – show Teacher led explanation of a supply chain. Discuss Fairtrade products and the supply chain for cocoa beans, bananas etc. Show Using knowledge gained in the production unit students brainstorm the main benefits of managing an effective supply chain. Analyse two benefits that Mcdonald’s gain from effectively managing their supply chain (6 marks). 3.3.3 The concept of quality Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Consequences of quality issues To understand that customers have expectations of quality in terms of the production of goods and the 2 Starter – students explain what they mean by the term quality. Reference – Show – link to quality. Student discussion on why quality is important for businesses.
Costs and benefits of maintaining quality To understand the and benefits of maintaining quality. Costs and benefits include additional sales, image/ reputation, higher price, inspection costs, staff training, product recalls and the provision of services. 1 Starter – show Students split into groups. Some groups focus on the benefits of maintaining quality, others focus on the costs of maintaining quality. Each group creates a list of the main benefits/costs of maintaining quality. A representative from each group explains one point that is on their list to the rest of the class. 4-mark question – explain two benefits of maintaining quality for a business like Apple. To understand the possible quality issues as businesses grow. Be aware of issues particularly if outsourcing and franchising is used. 1 Starter – understanding of diseconomies of scale. Discuss issues of outsourcing call centres and production to other countries – Students research an example of a business that has suffered quality issues as they have Use to assess understanding. 3.3.4 Good customer services Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Methods of good service To analyse the techniques businesses use to provide good Methods of good service include product knowledge, customer engagement 3 Starter – show clip from The best clip illustrating customer service is between 5–10.30 mins. Students consider the issues identified in the quality of customer service and generate ideas on how the process could be improved.
The ways in which advances in ICT have allowed customer services to develop To understand the reasons why advances in ICT have allowed customer services to develop. Reasons include advances in websites, and social media. 1 Starter – Read Students discuss their use of social media – how does this impact customer service? to base discussions. 3.2 Influences on business Teach before: 3.5 Marketing Teach after: 3.3 Business operations 3.2.1 Technology Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Impact of the changing use of ICT To understand the impact of the changing use of ICT and how it influences business activity. 1 Good resource to help students understand and the influences on business activity. How the use of ICT has changed – students to generate ideas of how ICT impacts them in the home. This could be presented in a spider diagram or students could be asked to draw their ideas. Students brainstorm the main ways ICT impacts business activity, eg e-commerce, customer service, communications etc.
Ethical considerations To identify and analyse where there may be a possible trade-off between ethics and profit. Ethical behaviour requires businesses to act in ways that stakeholders consider to be both fair and honest. 3 Starter – Recap understanding of ethical objectives vs profit objectives from earlier topic. Teacher brings a range of clothes or food into class – students to identify where clothes/food are manufactured – show Students to discuss why food miles are such a problem? Recap why businesses locate internationally. Show – student discussion about the issues identified in the video. Episodes 1-3 – excellent video resource on all ethical and businesses areas – section in episode two shows a new initiative by KFC on giving leftover food to local charities. Corporate social responsibility in bottled water market – Complete question 1c) 4 marks June 2016 on ethical business. To understand the benefits and drawbacks of ethical behavior. Students are expected to know relevant examples of ways in which a business can behave ethically. 1 – show a clip to students to open a discussion. What can businesses do to ensure that they are ethical in their approach? Based on discussions and work from previous lessons, students create a table for the main benefits and drawbacks of ethical behaviour. Complete question 1c) 6 marks June 2013. Environmental considerations To understand how businesses and consumers accept greater environmental responsibility in their and the Environmental considerations include impact on traffic congestion, recycling, disposing of waste and noise and air pollution. 1 Starter – Show images and – what are the environmental impacts of these activities? Show Teacher led notes on social costs – making
affected by changes in the rate of interest. that rely on overdrafts and loans for finance. showing Show to illustrate impact of changing interest How does this impact business spending? To understand how fluctuating interest rates can affect consumer and business spending. Economic theory relating to how/why interest rates change is not required. 1 Show or for a particular property – explain how mortgages work. Show – calculate how much would be left after the mortgage is paid – this is spending money (disposable income). Explain and illustrate the impact of increasing interest rates and thus mortgage payments. Students list other reasons for consumers requiring loans or credit – cars, sofas, credit cards, home improvements etc. Good overview of employment To identify how and why businesses might be affected by changes in levels of employment. 1 Definition of unemployment. Show – students to explain what the graph shows and what this means for individuals and businesses. Consumer spending To understand how demand for products and services may change as incomes fluctuate. 1 Show images of Heinz baked beans and an own brand tin of baked beans – students explain which they would choose and why. Show – link to demand for luxury goods for high income earners. Show to illustrate the variety of products available depending on income earned.
3.2.4 Globalisation Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources How UK businesses compete internationally To understand what is by globalisation. 1 Starter – students guess what is sold in this shop/café – Teacher explanation of globalisation or video explanation – Illustrate globalisation through Link back to used earlier. To understand the methods UK businesses use to compete internationally. Methods include better designs and higher quality products at lower prices. 1 Starter – – why is this product likely to be successful in a global market? – or – what were the possible reasons why Tesco wasn’t successful abroad? Show an – student discussion on the methods Sunseeker should adopt to compete successfully on an international stage – create a spider diagram. To analyse the benefits and drawbacks of globalisation for UK businesses. 1 Students create a poster or leaflet summarising what is meant by globalisation, examples of businesses that complete globally, the benefits and drawbacks for UK businesses. Exchange rates To understand the impact of exchange rates on the profit and sales of those businesses that Students will not be to calculate exchange rate conversions. 2 Starter – students to list any currencies that they know countries use (eg dollar, pound, euro) – Teacher definition of exchange rates – link to when students have gone abroad on holiday and have changed money or used different currencies. Show – ask students if anyone what caused the fall in June 2016 (Brexit).
To understand why businesses use segmentation to target customers. 1 Starter – show a variety of products – students decide customers they are targeted towards – for example nappies, SAGA holidays, Nintendo DS, Ford Ka, local pizza delivery restaurant, Good Housekeeping magazine, Mercedes car etc. Students should consider the age, gender, location and income. Students to think of a product that could be targeted to all customers rather than a specific market. Show clip of – why do McDonald’s use segmentation to target customers? 3.5.3 The purpose and methods of market research Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Purpose of market research To understand why businesses conduct market research. To understand the types of information collected in market research. Reasons for conducting market research include to identify market opportunities and to get a better insight into their customers and competitors. Market research collects information demand, 1 Starter – Teacher led explanation and definition of market research. Students imagine they are the leader of Nintendo – what five pieces of information you want to find out to help your decision making. Students should explain why they have chosen this information. References – Students discuss the benefits gained by businesses through conducting market research – discussion based on knowledge gained in previous lessons.
To understand the benefits and drawbacks for various market research techniques. To evaluate the best method for a given business. 1 Starter – Using the experiences identified in previous lessons when students have collected primary and secondary research students create a table for the main benefits and drawbacks of each option. 9-mark question evaluating the most effective form of market research when researching the chocolate market to help create a new product. Market research case study and materials – Use of market research: information that may help decision making To be able to interpret and use qualitative and quantitative market research findings to help make appropriate decisions for different types of business. Students should be expected to manipulate and interpret data from tables and charts. 1 Starter – Students write an explanation of what they have found from the market research they’ve collected in previous lessons. Students given the opportunity to interpret qualitative and quantitative market research findings. Complete question 1d) 9 marks Paper 1 June 2015. To understand the difference between market size and market share. 1 Teacher explanation of market share and market size. Students create a including headings for market, market leader, market share, sales of the market leader and market size. Students decide on figures for different markets including crisps, chocolate bar, ice cream, cat food, coffee etc.
The product life cycle To understand the product life cycle. To be able to demonstrate how the demand for a product or service might change over time. The stages of the product life cycle should include research and development, introduction, growth, maturity and decline. 1 Starter – show products that were once successful – Nokia 3310, loom bands, Sega Megadrive, minidisc player etc. Students discuss why these products no longer exist. Teacher led explanation of the product life References – Students draw the product life cycle and explain each stage. In pairs they should label their diagram with an example for each stage. Show images of a variety of products or music bands – students have to decide which stage of the product life cycle they are currently at. To understand what is meant by an extension strategy. To evaluate the effectiveness of extension strategies and when they would be suitable. Extension strategies include updating packaging, adding more or different features, changing target market, advertising and price reduction. 1 Starter – Show a product that is entering the decline stage of the product life cycle – in groups students generate three strategies they could adopt to try and increase the level of sales. Each group should present one strategy to the class and justify why they think their strategy is the best one. From student ideas create a list of extension strategies. Students think of business examples for each extension strategy. Exam question June 2016 Paper 2 3d) 9 marks. Product portfolio To understand how and why businesses might broaden and balance their product portfolio using the Boston Matrix. To be able to identify and explain 2 Starter – students list as main brands/products that are made by Nestle or the cars that are produced by Ford. Reference – Teacher led explanation of product portfolio. Students discuss why businesses such as Ford and Nestlé have large product portfolios. Teacher led explanation on the Boston Matrix. Students draw the Boston Matrix and explain the characteristics of each section.
Students create a table for the main benefits and drawbacks of these methods of promotion. To understand the factors influencing the selection of the promotion mix to assess suitability for a given business. To analyse the factors influencing the selection of the promotion mix to assess their suitability for a given business. Factors that influence the selection of the promotional mix include the finance available, competitor actions, the nature of the product or service, the nature of the market and the target market. 1 Students brainstorm the main factors that influence the selection of the promotional mix. Split students into groups. Each group is given a famous business or product. Students create a promotional campaign for their business/product. or Continue their marketing project – students create a promotional campaign for their chocolate product or non-alcoholic cocktail. Students justify why they have chosen to use the methods of promotion that they have for their product. Complete question 1d) 9 marks Paper 1 June 2013. Place (the different channels of distribution used by businesses) To understand the different channels of distribution used by businesses to gain access to potential customers. Includes an understanding of retailers, wholesalers and telesales. 1 Starter – students generate ideas about where Apple products can be purchased from. Show Definition of retailers, wholesalers and telesales. Students draw a diagram illustrating the main channels of distribution. Students discuss why the direct channel of distribution is increasingly the most popular. Reference – To analyse the appropriateness of each distribution method for a scenario. 1 Starter – Give students a range of products, for each one students have to explain which channel of distribution is the best option. Complete question 2c) 6 marks Paper 2 June 2015 or 1b) 4 marks Paper 2 June 2014.
3.6 Finance before: Revision Teach after: 3.5 Marketing 3.6.1 Sources of finance Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Methods businesses use to raise finance To understand the main internal and external sources of finance available. To be able to analyse the advantages and disadvantages of each method for a given situation. Sources of finance available include family and friends, retained profit, a new share issue, obtaining a loan or mortgage, selling unwanted assets, overdrafts, trade credit, hire purchase and government grants. 3 Starter – students brainstorm the reasons why businesses need to raise finance. Show – students discuss why entrepreneurs choose to go on the programme. Reference – Show video clip on raising finance – Research – students complete research on the main sources of finance available to new, growing or established businesses, eg , etc. Students create a with headings including sources of finance, internal or external source of finance, appropriate for what size of business, advantages and disadvantages. Students create a leaflet for the to guide businesses on what finance is available and which would be the most appropriate source of finance for their business. Complete question 1d) 9 Paper 1 June 2014.
Appropriateness of sources of finance To be able to evaluate the suitability of sources of finance for new and established businesses. 1 Starter – Give students a range of scenarios, eg purchasing more stock, purchasing a new factory etc. Students explain which source of finance is most appropriate in each case. Complete question 3d) 9 marks Paper 2 June 2013 or 2b) 6 marks Paper 1 June 2015 or 2c) 9 marks Paper 2 June 2015. 3.6.2 Cash flow Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Importance of cash to businesses To understand the consequences of cash flow problems and the effect of positive cash flow. 1 Starter – – students try to explain what is going on to their partner. Teacher led definition of cash flow. Students explain why an ice cream shop may have cash flow problems during the year. Students explain the impacts on the ice cream shop of cash flow problems. Research – students research what went wrong with Woolworths. Students brainstorm the effects/benefits of having a positive cash flow position. Reference – Interpreting cash flow forecasts To understand how and why cash flow forecasts are constructed. This includes an understanding of cash inflows and outflows, net cash flow and the 2 Starter – Teacher definition of a cash flow forecast. Recapping understanding from last lesson – students make a list of reasons why cash flow forecasts are constructed.
Specification content Learning objectives Additional guidance Suggested timing (hours) Learning activities and resources Basic financial terms Basic financial calculations To understand the difference between variable fixed costs and total costs. To understand the concept of revenue, costs, profit and loss. To be able to calculate revenue, and profit. 1 Starter – students write a list of 10 costs that a retail business incurs. Students swap their list with their partner. The partner needs to identify whether the cost are variable or fixed. Key words and simple calculations revision test. Complete question 2b) 4 marks Paper 1 June 2016 profit calculation. Complete question 1.7 from specimen 2. Average rate of return To understand the main investment projects that businesses undertake. To be able to calculate the average rate of return for these projects. The main investment projects include investment in new machinery, buildings and vehicles. 2 Starter – show an image of an expensive sports car and a luxury yacht – students decide which one they would purchase and why. Teacher explains that this decision is based around enjoyment of the product etc. vs the cost of the product. Most businesses will base their decisions on cost of the project vs the profit they can generate from the project. Students create a list of the main investment projects businesses are concerned with. Teacher led explanation of the average rate of return calculation. Students complete average rate of return calculations for a variety of projects. Complete question 2.4 from specimen paper 2.