BTEC First Award Business

Unit 1 Enterprise in the Business World

Below you can find a collection of resources that should help you with your knowledge and understanding of the Enterprise in the Business World unit of your BTEC studies.

This unit will be examined so you need to ensure that you are ready and prepared for your coursework and good performance in this piece of coursework is critical to achieving your highest possible grade in your Business Studies course.

Learning Aims;

  • A Know how trends and the current business environment may impact on a business
  • B Plan an idea for a new business
  • C Present a business model for a business start-up

Topic

Content

BeeBusinessBee Resource

Assessment Questions

A.1 Finding information

● Sources of information, e.g. broadsheet and local newspapers, professional and trade journals, websites, business networking organisations

● Reliability of sources and bias and currency of information

 
Business Studies Lesson 1 Research Activity

BTEC Command Verbs

A.2 Factors to consider in the current business environment

National factors – political issues, level and type of government support for business, taxation, the economy, e.g. level of employment, inflation, exchange rates, cost of
loans.

● Local factors – location of business, requirements for resources, e.g. premises, staff,
equipment, location of suppliers, competitors and customers

● Impact of factors – on a selected target group of customers, relevance to business
proposition

 The UK economy and Factors to Consider

Impact of Changing External Factors on Business Costs

 

A.3 Trends affecting business

● Social trends, e.g.:
o population changes, increasing life expectancy
o households and families, e.g. more couples cohabiting
o education, e.g. increasing achievements at GCSE
o labour market, e.g. increase in flexible working
o increasing travel for work, e.g. longer commutes to work

● Technology trends, e.g. increasing use of information technology, telephony and web
developments

● Environmental trends, e.g. increase in renewable energy and recycling

● Ethical trends – ethical concerns of potential customers, e.g. carbon footprint,
sources of timber, child labour, inadequate pay, animal welfare, identification of
values of an organisation and ethical codes to address ethical concerns, contribution
of business to the community

 Trends affecting Business Presentation

Social, Technological, Environmental, Ethical and Economic Trends Fact Sheet

 

A.4 Size of business and type

Micro business – up to 9 staff

● SMEs (small and medium enterprises):
o small enterprises – between 10 and 49 staff
o medium enterprises – between 50 and 249 staff

● Large business – more than 250 staff

● Start-ups and existing businesses

 Business Size and Sector Presentation

 

B.1 How business ideas can be successful

● Finding innovative solutions, e.g. Dyson

● Meeting customer needs, e.g. products or services, filling a gap, doing it better than competitors

● Identifying new needs, e.g. mentoring and coaching, using digital media (such as
social networking websites)

● Continuing to meet established customer needs, e.g. adapt when gap in provision,
review and improve provision

● Being entrepreneurial – ideas of recent entrepreneurs, e.g. Tanya Budd, Rose Grimond, Mark Zuckerberg

● Importance of having a strong vision and seeing it through, e.g. Apple

● Measures of success, e.g. financial, social, customer satisfaction

 
 

B.2 Business ideas

Researching the market and identifying gaps or opportunities

● Selecting a product or service
● Targeting customers, e.g. by age, location, interests, concerns
● How a selected product or service will meet the need or demand of targeted
customers
● Difference between ‘benefits’ and ‘features’ of a product or service

 Secondary Market Research

Target Market

 

 B.3 Assessing the suitability of a business idea

● Estimating resources required to develop ideas, including:
o own time, others’ time, skills and areas of expertise
o personal commitment
o finance, premises, materials, equipment
● Selecting the most appropriate idea
● Likelihood of success or failure, e.g. access to prospective customers, existing
demand, estimating profitability
● Identification of major barriers for a start-up business, e.g. large start-up costs,
cash flow, licences, competitors

   

 B.4 Producing an initial plan for a business idea

Producing a plan, including: 

o a rationale for a realistic idea, including vision and concept
o supporting evidence, e.g. possible customers, possible routes to market, strategy
for dealing with competitors, ideas for financing, ideas for implementation

 Creating a Business Plan Contents Guide

Unique Selling Point (USP) Presentation

Competition Analysis Table

 C.1 Choice of format

● Definition, features, advantages and disadvantages of the following formats:
o sole trader
o partnership
o limited company
o public limited company (plc)
o social enterprise 

 Business Ownership Types Presentation

Business Ownership

 Share Portfolio Activity

Business Ownership Quiz (Sole Trader and Partnerships)

Business Ownership Quiz (Private Limited and Public Limited Companies)

 C.2 Sources of help and support in developing a new business

 Sources of help, e.g. finance (bank manager), start-up capital (selling shares to 

family members, Prince’s Trust), research (other businesses), independent advice
(Business Link)
● Support networks, e.g. Chambers of Commerce, trade associations, professional
bodies, friends and family, charities and voluntary organisations

   

 C.3 Business model

● Definition of a business model – shows how a business aims to generate revenue and make a profit from operations: the model includes the components and functions of business, as well as revenues it generates and expenses it incurs 

● Components of a business model, including:
o results of researching the market, including identifying potential customers
(businesses or individual consumers) and competitors
o goods or services – make or buy
o means of delivering to customer, e.g. internet only, franchise, direct sales
o business aims – the long-term visions or goals
o business objectives – measurable targets to help achieve the overall aims of
a business, importance of making objectives SMART (specific, measurable,
achievable, realistic and time-related)
o stakeholders and their influence on the business, e.g. owners, employees,
customers, financiers, suppliers, local community
o finances and costs for start-up
o providing evidence to justify why the idea will succeed

 Business Aims and Objectives Worksheet

Business Aims and Objectives Presentation

Business Aims and Objectives Classroom Activity