Sam Nasir Mulki TEACHERS DESK Board Door Trish Jack Imran Nice Joe Lidia Trish Shuyeb Rabbab Balween Sam Jack Bonnie Imran Mason Asil Jahangir Nice Yassir Maruf Simran Rahat UPDATE THIS – EN5 Ria Yugesh Shamar Joe Nasir Charlotte Anthony Mulki Harry Edmond Brijesh Aditya

Homework Open your book on the page of the homework from Wednesday - it was to complete the 6 hat thinking for the iPhone 6 Glue your 6 hat worksheet in.

Smart Idea??? WHY NOT?

DO YOU? J-walk across Whalebone Lane? The number of pedestrians killed on Britain's roads increased by 3% in 2011, to 1,901 Whereas 401 people died on commercial and charter planes in 2011

Calculated Risk

Taking a calculated risk Calculated risk is about putting a numerical value or probability on the risk. It is the chance of something negative happening. Examples: The risk of losing your premises if you don’t pay your rent Very high =100% Risk of a child getting burnt whilst cooking Quite high =50%

Upsides and Downsides Business must consider both upsides and downsides when planning their business. Upsides - the advantages of a course of action, including what can go right Downsides - the disadvantages of a course of action, including what can go wrong

Downsides Examples: Not get enough customers = no profit Poor quality products from suppliers The major risk is that a business could fail, therefore businesses must put a price on this (how much would they lose?/what are the chances of this happening?)

Upsides Examples: The business could sell lots of its products and earn lots of money Could get a cheap deal from suppliers by buying in bulk. Using market research businesses have to estimate what they could earn and compare this to the chances of the business failing (if the possibility of success is higher than the possibility of failure the business will be prepared to take the calculated risk)

Upside or Downside? Create a table for Upsides and Downsides 1.The business could fail 3.They should be able to produce the product very cheaply 2. Ben finds a cheap deal for his insurance 4. The owner of the business premises has put the rent up 5. Ben has no industry experience 6. The product could be a gimmick and therefore it’s popularity will fade very quickly 7. Ben has the funds available to start a new business 8. Nobody wants to buy the product 10. The equipment bought from the manufacturers might be faulty 9. Ben could earn lots of money 11. Ben is likely to set up as a sole trader 13. The inflatable speakers could be very popular 12. VAT goes down Get students to sort into piles 14. Ben is a risk taker 15. The business could be a success 16. Ben falls ill

Should you take out insurance to protect your business? Insurance pays for the damage Yes Is there a fire? Yes Money spent on insurance is wasted No Should you take out insurance? Yes The business goes bankrupt No Is there a fire? No No money is wasted on insurance

Thinking creatively You have 15 minutes to: Answer the following in your books – under the heading: Taking a calculated risk (Write out the Questions) What could be the risks and rewards for a pet shop in an area where one already exists but is quite expensive? How can a business reduce the risks of starting a business such as the Pet Shop above? What kind of market research could the potential pet shop owner do to reduce risk? Why is gut feeling often unreliable and often causes business failure? Extension: 5. Design a Trademark for the Pet Shop Thinking creatively 5 Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. AO3 Analyse/evaluate evidence, make/present reasoned judgements Grade A-B effectively/accurately | C-D satisfactorily/some | E-F simple/some For those students who require extension work they can complete this activity. They should write out their answers in essay form.

Quiz Question Frankie runs a restaurant. Which one of the following would be an example of a calculated risk for his business? Select one answer. There is a 50:50 chance that he would lose over 10 per cent of his customers if he put up his prices by a fifth A customer might not like a new recipe The price of fish might go up by a quarter over the next 12 months The insurance bill for his business has increased by 10 per cent

Quiz Question Keanu runs a small business that makes wooden toys for sale by mail order and over the Internet, as well as to toy shops and gift companies. Which one of the following would be an example of an upside for his business? Select one answer. A rise in the wages he pays to his staff An increase in the cost of postage A rise in taxes on toys A fall in the price of wood

Quiz Question Sama runs a hairdressing business. Which one of the following would be an example of a downside for her business? Select one answer. A fall in the prices she has to pay her suppliers for hair care products A rise in the wages she pays her staff A rise in the number of her customers A fall in the rent she pays on her business premises