Business Studies - Year 10

Business Studies Overview

Term 1: Topic 1.1 Enterprise and entrepreneurship

Students are introduced to the dynamic nature of business in relation to how and why business ideas come about. They also explore the impact of risk and reward on business activity and the role of entrepreneurship.

  1. Students will sit an end of unit assessment based on exam questions. The areas assessed will be: - The dynamic nature of business -Risk and Reward -The role of business enterprise,
Enterprise

Entrepreneurial activity (can also mean a business or company)

Entrepreneur

Someone who creates a business, taking on financial risks with the aim of making a profit from the business

Consumer

Someone who buys and uses goods and services

Obsolete

Out of date or not used anymore

E-commerce

Using the internet to carry out business transactions

M-commerce

Using mobile technologies, such as smartphones and tablets, to carry out business transactions

Social media

Websites that allow users to interact with other users, by sharing text-based messages, pictures or links to online content

Payment platform

Enable businesses to take online payments from customers. They are usually free for the customer to use, but take a small amount of commission from the seller

Marketplace

The activities involved in buying and selling particular types of goods and services, in competition with other companies

Data

Information, particularly statistics, that can be collected and analysed

Demographic

Relating to the population, such as average age, average income and so on

Risk

The possibility that an enterprise will have lower than anticipated profits or experience a loss

Financial reward

The money that an entrepreneur or investor receives when a business succeeds

Market research

The process of gathering information about the market and customers’ needs and wants in order to help inform business decisions, including product design and marketing

Revenue forecast

A prediction of future revenue based on expected sales; this is either a judgement or based on previous sales patterns

Cash flow

The amount of money coming in and going out of the business and the timing of the movement

Sales revenue

The amount of money that comes in from a business’s sales

Investment

Putting money into a business with the intention of making a profit

Start-up

A new business, usually with only a small number of employees – perhaps only one

Intuition

Knowing something instinctively or understanding something easily without conscious thought

Stakeholder

Anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community and the government

Ethics

Moral principles or standards that guide the behaviour of a person or business

Unique selling point (USP)

Something that makes a product stand out from its competitors

Values

Standards of behaviour or moral principles

Loyalty

Wanting to always support something or someone

Market share

The proportion of sales in a market that taken by one business

Economy

The system by which a country’s money and goods are produced and used

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Students learn what it means to be an entrepreneur and the role of enterprise.

Create a supportive community:

Students learn group working skills and appreciate other view points.

Term 2: Topic 1.2 Spotting a business opportunity

Students will explore how new and small businesses identify opportunities through understanding customer needs and conducting market research. They will also focus on understanding the competition in an industry and how it can influence stakeholders.

  1. Students will sit an end of unit assessment based on exam questions. The areas assessed will be: - Customer needs - Market Research - Market Segmentation - The competitive environment.
Convenience

A product or service’s ability to fit in well with a customer’s lifestyle or routine, the ease with which it can be used and/or its easy to reach location

Viable

Able to work properly or successfully

Market research

The process of gathering information about the market and customers’ needs and wants in order to help inform business decision, including product design and marketing

Focus group

A group of people who discuss their views on a product, service advertisement or idea, either face-to-face or online

Target market

A particular group of consumers at which a business aims its products and services

Sample

A portion of the population asked for their opinions in order to draw conclusions about the behaviour of the whole population

Generation Y

The people born shortly before the 21st century, usually defined as born between 1980 and 2000

(also known as Millennials)

Data

Information, particularly statistics, that can be collected and analysed

Biased

Unbalanced or inclined to agree with a particular judgement or ideas rather than presenting the evidence fairly

Ethics

Moral principles or standards that guide the behaviour of a person or business

Source

A place, person or thing, such as a book or report, that can provide information to be used in research

Chamber of commerce

A local association that promotes the interest of businesses in a county or region

Trade association

Organisation founded and funded by businesses that operate in a specific industry

Analysis

The process of looking at data to identify patterns or trends

Incentive

Something such as a payment or gift that encourages someone to do something

Valid

Having a solid or accurate basis of facts

Segmentation

The process of breaking something into smaller parts

Demographics

Relating to the structure of a population

Axes

The reference lines on a graph

SWOT analysis

A study undertaken by a business to identify the strengths and weaknesses, opportunities and threats

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Students learn how to identify opportunities and understand the needs of other people and how they might differ from their own needs.

Create a supportive community:

Group work and the ability to challenge each other over what makes a good product.

Term 3: Topic 1.3 Putting a business idea into practice

This topic focuses on making a business idea happen through identifying aims and objectives. This topic also highlights the importance of finances within a business and how financial documents can help control spending and saving over time.

  1. Students will sit an end of unit assessment based on exam questions. The areas assessed will be: -Business aims and objectives -Business revenues, costs and profits -Cash and cash-flow -Sources of Business Finance
Market share

The proportion of sales in a market that are taken by one business

Profit

The amount of revenue left over once costs have been deducted

Social objectives

Likely to be non-financial, such as to reduce the carbon emissions of a business or improve the quality of life for a local community

Income stream

The source of regular income that a business receives. This could be through the money it receives from customers, or other seas such investment income

Viable

Capable of working or succeeding

Income statement

A financial statement showing the amount of money earned and spent in a particular period and resulting profit and loss

Stakeholder

Anyone who has an interest in the activities of a business, such as its workers, its suppliers, the local community and the government

Break-even point

The point where revenue received meets all of the costs of the business

Credit

The amount of money that a financial institution or supplier will allow a business to use, which it must pay back in the future at an agreed time

Overheads

Fixed costs that come from running an office, shop or factory, which are not affected by the number of specific products or services that are sold

Insolvent

A business that is unable to pay its debts and/or owes more money than it is owed

Consumables

Items that get ‘used up’, such as pens, paper, staples and other items that a business has to replace regularly

Trade credit

A credit arrangement that is offered only to businesses by suppliers

Overdraft

A facility offered by a bank that allows an account holder to borrow money at short notice

Cheque

A written order to a bank to pay an amount of money from an account holder’s account to a specified person

Venture capital

Money to invest in a business is sourced from individuals, or groups of people, who wish to invest their own money into new businesses

Return on investment

The amount of money that an investor gets back in return for investing a business

Shareholders

Investors who are part-owners of a company

Share capital

Money to invest in a business is raised by the business issuing shares that it then sells to those who wish to invest in the company

Credit check

A check on the financial status of a business or individual to ensure that the business or the individual has a reliable credit history and does not have any existing outstanding debts

Security

When the lenders asks the borrow to put up an asset, such as a house, or a valuable item owned by the business

Asset

Any item of value that a business owns, such as its machinery or premises

Guarantor

A named person who guarantees to pay the repayments on a loan should the person who has taken out the loan not be able to make the payments

Retained profit

Money that a business keeps, rather than paying out to its shareholders

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Help students understand financial terms and the importance of ensuring companies control their cash flow.

Create a supportive community:

The students will work together to help understand how financial processes work.

Term 4: Topic 1.4 Making the business effective

Students will explore a range of factors that impact the success of different firms including location, marketing mix and business plans.

  1. Students will sit an end of unit assessment based on exam questions. The areas assessed will be: - The options for start-up and small businesses -Business Location -The marketing mix -Business Plans
Limited liability

The level of risk is limited to the amount of money that has been invested in the business or promised as investment

Assets

Property, such as a house or car

Incorporated

A business that is registered as a company, so the business and the owners are separate in the eyes of the law

Unlimited liability

The level of risk goes beyond the amount invested, so the personal assets of the business owner can be used to pay off the business’s debts

Unincorporated

A business that is not registered as a company, so the owners and the business are the same body in the eyes of the law

Sole trader

A type of unincorporated business that is owned by just one person

Partnership

A business that is owned by a group of two or more people who share the financial risk, the decision-making and the profits

Deed of partnership

A legal document that defines the terms of a partnership

Private limited company

An incorporated business that is owned by shareholders

Shareholders

Investors who are the part-owners of a company. They invest in the business in return for a share of the profits and voting rights at the AGM

Franchise

When one business gives another business permission to trade using its name and products in return for a fee and share of its profits

Franchisor

An established business that gives permission to an entrepreneur to trade using its name and products

Franchisee

An entrepreneur who pays a fee to trade using the named and products of an established business

Labour

Workers or the workforce

Footfall

The number of people passing a particular location within a given time period

Demographics

The characteristics of the population, such as gender, age, religion and wealth

National Living Wage

The minimum amount that a business is legally allowed to pay its employees

Bulk-gaining product

A product that is bigger than the raw materials used to make it, such as a bicycle

Bulk-reducing product

A product that is smaller than the raw materials it uses, such as paper

Convenience good

A product that a customer buys frequently or routinely

Shopping good

A product that a customer takes time to consider before purchasing, by looking at or weighing up a number of options before choosing one

Topography

The physical characteristics of a landscape, such as being flor or hilly

Inertia

A tendency to keep things as they are rather than change

E-commerce

Using the internet to carry out business transactions

M-commerce

Using mobile technologies, such as smartphones and tablets, to carry out business transactions

Multi-channel

Using a number of methods to reach a customer, including physical stores and e-commerce

Undercut

Sell the same product for a lower price than competitors

Price war

When competing businesses try to undercut each other by lowering prices. This leads to an ongoing battle where only the customer benefits, not the businesses

Product differentiation

Designing a product with some unique features that distinguish it from similar products sold by competitors

Brand loyalty

A customer’s willingness to buy a product from a particular business rather than from its competitors

Market share

The percentage of the total sales of a product in a market that is taken by one business in that market

Recession

A period of economic decline characterised by the fact the economy has failed to grow for 6 consecutive months

Promotional mix

The combination of promotional activities that a business uses to make customers aware of a product, with the aim of increasing sales

Business plan

A document that outlines how an entrepreneur is going to set up a new business

SMART objectives

Objectives that are Specific, Measurable, Achievable, Realistic, and Time-bound

Market research

The process of gathering information about the market and customers’ needs and wants in order to help inform business decisions, including product design and marketing

Target market

That group of people that a business has identified as potential customers

Revenue

The money that will come into a business from sales

Profit

The amount of revenue left over once costs have been deducted

Cash flow

The amount of money coming in and going out of the business and the timing of its movement

Budgets

Pre-set financial targets for a business to achieve, like a sales budget, or abide by, such as an expenditure budget, in a given period of time

Negative cash balance

Occurs if the business’s opening balance results in the negative amount at the end of the period, leading to a cash shortage

Overdraft

A facility provided by a bank allowing a current account holder to withdraw more money than there is in the account

Bank loan

A fixed sum of money lent by a bank to an individual or a business for a specific purpose, which must be repaid with interest in set payments over an agreed period of time

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Students will learn how to explore different forms of advertising and understand how it could be misleading or how it can influence customers to purchase goods and services.

Create a supportive community:

Through individual and group work they will gain first hand experience in what makes people happy and love their work. Also they will see how small changes can motivate or demotivate workers.

Term 5: Topic 1.5 Understanding external influences on business

Students are introduced to a range of factors, many of which are outside of the immediate control of the business, such as stakeholders, technology, legislation and the economy. Students will explore how businesses respond to these influences.

  1. Students will sit an end of unit assessment based on exam questions. The areas assessed will be: -Stakeholders -Technology and business -Legislation and business - The economy and business -External influences
Stakeholder

Anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community and the government

Shareholders

Investors who are part-owners of a company

Private limited company

An incorporated business that owned by shareholders who invest in the business in return for a share of the profits and voting rights at the annual general meeting (AGM)

Public limited company

An incorporated business that can sell shares to the public (also known as a PLC)

Stock exchange

A place where shares in PLCs can be bought or sold

Profit

The amount of revenue left over once costs have been deducted

Payment terms

The period of time that a business has to pau its suppliers

Ethics

Moral principles or standards that guide the behaviour of a person or business

Conflict

A serious disagreement, usually between people, countries or ideas

Real-time

Live or as it happens

Cookies

Small files stored on a customer’s computer when the customer visits a website, which record details about that visit and can be accessed by the website when the customer visits it again

Legislation

The laws that a business must comply with

Reasonable care

In consumer law, this means offering a service that is suitable for customers, such as providing a meal that can be eaten

Induction

The period of time after an employee starts a job when they must be shown how to safely and within the employer’s expectations

Comply

Obey a command or meet a set of standards

Minimum wage

The lowest legal rate of pay for employees, depending on their age and their type of employment

Discrimination

When someone is treated differently to someone else because of a particular characteristic, such as a disability, their ethnicity or their sex

Protected characteristic

Characteristics that cannot be used in the recruitment process to reject a candidate, such as age, disability, sex or gender, marriage status, pregnancy, race religion or believe, or sexual orientation

Levy

A tax on a particular product or service

Globalisation

When businesses operate and in international scale and gain international influence or power

Bank of England

The central bank of the United Kingdom. It manages the country’s debts, sets interest rates and influences the exchange rate between the pound and other currencies

Tax

A proportion of an individual’s income or a business’s profits that must be paid to the government

Imports

The flow of goods and services into a country from another country

Exports

The flow of goods and services out of a country to another country

Gross profit

The amount of profit that a business makes before the business’s costs are deducted

Obsolete

Out of date or not used anymore

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Students understand the impact of various agents acting on a business.

Create a supportive community:

Students learn how to deal with a multitude of requirements and how to satisfy the needs of others.

Term 6: End of Year Examination and Topic 2.1 Growing the business

The end of year 10 examination is based on all theme 1 content from terms 1-5. Teaching will then focus on theme 2. Students are introduced to methods of growth and why aims and objectives change over time. The impact of globalisation and the ethical and environmental questions facing businesses are explored.

  1. Students will sit a mock exam on all content covered in theme 1.
A backwards Integration

Where a brewery acquires a hop farm to ensure continuity of supplies.

Internal Growth

Businesses may grow internally i.e. without involving another business. They can do this through aggressive marketing, increased sales, a new product range, or through technological change.

External Growth

Mergers - A merger is when two or more companies voluntarily join together to form a single organisation. This is also known as integration.

Ethics

A set of social principles that govern or influence how we behave. Ethical Behaviour Business behaviour which places moral values above maximising profits.

Sustainability

Measure of whether a production process can be continued into the long term. A business policy based on sustainability focuses on recycling, waste management and replanting.

Diversification

Many companies have grown by diversifying. This means moving into other areas of production or sales. A conglomerate is a business that operates in many different markets.

  • Spiritual
  • Moral
  • Social
  • Cultural
Develop the individual:

Students will understand the motives for why different businesses grow either internally or externally.

Create a supportive community:

Students will learn why some businesses grow nationally and some expand internationally with the knowledge that each firm has different objectives and finances available to them.