Business Studies

1.1.1 The dynamic nature of business

Why new business ideas come about: changes in technology, consumer demands, obsolescence of products. How new business ideas come about: original ideas, adapting existing ideas/products.

1.1.2 Risk and reward

Risk: business failure, financial loss, lack of security. Reward: success, profit, independence.

1.1.3 The role of business enterprise

Purpose: produce goods/services, meet customer needs. Role of entrepreneur: organises resources, takes risks, makes decisions. Adding value: convenience, branding, quality, design.

1.2.1 Customer needs

What customer needs are: price, quality, choice, convenience. Importance: generates sales, business survival.

1.2.2 Market research

Purpose: understand customer needs, identify gaps, reduce risk, inform decisions. Methods: primary (survey, focus groups), secondary (internet, reports). Data types: qualitative and quantitative.

1.2.3 Market segmentation

Segmentation factors: location, demographics, lifestyle, income, age. Market mapping: identify gaps and competition.

1.2.4 The competitive environment

Competitor analysis: price, quality, location, product range, customer service. Impact on decisions: influences business strategy.

1.3.1 Business aims and objectives

Aims/Objectives: financial (profit, survival, market share) and non-financial (social, personal satisfaction).

1.3.2 Business revenues, costs, profits

Concepts: revenue, fixed/variable costs, profit, break-even, margin of safety. Break-even analysis: impact of changes in costs/revenue.

1.3.3 Cash and cash-flow

Cash importance: pay suppliers, prevent insolvency. Cash-flow forecast: inflows, outflows, net flow, balances.

1.3.4 Sources of business finance

Short-term: overdraft, trade credit. Long-term: savings, loans, venture capital, crowdfunding.

1.4.1 The options for start-up and small businesses

Limited vs Unlimited Liability: implications for owners. Business types: sole trader, partnership, limited company, franchising.

1.4.2 Business location

Factors: proximity to market, labor, materials, competitors, internet impact.

1.4.3 The marketing mix

Elements: price, product, promotion, place. Impact of tech: e-commerce, digital communication.

1.4.4 Business plans

Importance: identify business idea, aims, market, finance, forecast. Minimising risk: planning to obtain finance.

1.5.1 Business stakeholders

Stakeholders: owners, employees, customers, suppliers, local community, government. Impact and conflicts: how business activity affects and is affected by stakeholders.

1.5.2 Technology and business

Tech types: e-commerce, social media, payment systems. Influence on business: sales, costs, marketing mix.

1.5.3 Legislation and business

Consumer law: quality, consumer rights. Employment law: recruitment, pay, discrimination.

1.5.4 The economy and business

Economic impact: unemployment, income, inflation, interest rates, taxes, exchange rates.

1.5.5 External influences

External influences: technology, legislation, economic climate. Business responses: adapting to changes.

2.1.1 Business growth

Methods of growth: Internal (organic) growth (new products, new markets) & External (inorganic) growth (merger, takeover). Business ownership: Public limited company (plc). Sources of finance: Internal (retained profit, selling assets) & External (loan capital, share capital, stock market flotation).

2.1.2 Changes in business aims & objectives

Why aims change: response to market conditions, technology, performance, legislation. How aims change: focus on survival/growth, market entry/exit, workforce changes, product range adjustments.

2.1.3 Business and globalisation

Globalisation impacts: imports (competition, buying from overseas), exports (selling abroad), changing business locations, multinationals. Barriers: tariffs, trade blocs. International competition: internet, e-commerce, adapting marketing mix.

2.1.4 Ethics, environment, and business

Ethical/environmental impact: trade-offs between ethics and profit, pressure group influence on marketing mix.

2.2.1 Product

Design mix: function, aesthetics, cost. Product life cycle: phases, extension strategies. Product/service differentiation: importance for business.

2.2.2 Price

Pricing strategies: influenced by technology, competition, market segments, product life cycle.

2.2.3 Promotion

Promotion strategies: advertising, sponsorship, trials, offers, branding. Technology in promotion: targeted ads, viral marketing, e-newsletters.

2.2.4 Place

Distribution methods: retailers and e-tailers (e-commerce).

2.2.5 Using the marketing mix

Influence of marketing mix elements: interaction and impact on competitive advantage.

2.3.1 Business operations

Purpose: produce goods, provide services. Production processes: job, batch, flow. Tech impact: balancing cost, productivity, quality, flexibility.

2.3.2 Working with suppliers

Stock management: bar gate graphs, JIT stock control. Procurement: impact on costs, reputation, customer satisfaction.

2.3.3 Managing quality

Quality concepts: control and assurance in production and service. Impact: controlling costs, gaining competitive advantage.

2.3.4 The sales process

Sales process: product knowledge, service speed, customer engagement, feedback, post-sales. Customer service importance: key to business success.

2.4.1 Business calculations

Calculations: gross profit, net profit, gross/net profit margin, average rate of return.

2.4.2 Understanding business performance

Data use: graphs, financial, marketing, and market data for decision-making. Limitations: understanding and using financial info for performance and decisions.

2.5.1 Organisational structures

Structure types: hierarchical, flat, centralised, decentralised. Effective communication: tech impact on efficiency, remote working.

2.5.2 Effective recruitment

Communication impact: efficiency, motivation, barriers to communication. Ways of working: part-time, full-time, flexible hours, freelance contracts. Recruitment methods: internal vs external recruitment.

2.5.3 Effective training and development

Training methods: formal/informal, self-learning, ongoing. Training importance: motivation, retention, adapting to new technology.

2.5.4 Motivation

Motivation importance: attracting, retaining employees, productivity. Motivation methods: non-financial (job rotation, autonomy) and financial (bonus, commission, promotion).