Unit 1 – Topic 1 Spotting a business opportunity 22/09/2018 GCSE Business Unit 1 – Topic 1 Spotting a business opportunity

Start of lesson drills Planner on the desk Pen/stationary available 22/09/2018 Start of lesson drills Planner on the desk Pen/stationary available Exercise book open on the desk Date copied from the board New title copied from the board: Revision Ready to learn Reminder

22/09/2018 Expectations Be in the right place, at the right time doing the right thing: Be respectful of others and allow them to learn Complete all homework tasks set and come to me if you have any problems completing it Respect all school equipment Bring the correct equipment (pens, books etc.) to our class Act as respectable young adults like business individuals Reminder

Homework Demand worksheet due today (Monday 21st September P2) 22/09/2018 Homework Demand worksheet due today (Monday 21st September P2) Hole punch your worksheet and file it in your homework folder Swap your homework folder with someone

Unit 1 – Section 1 Spotting a Business Opportunity 22/09/2018 Unit 1 – Section 1 Spotting a Business Opportunity An introduction to business enterprise Financial objectives: the range of motives for wanting to start a business including profit or income, financial security and wealth Non-financial objectives: personal satisfaction, challenge, to help others (eg starting a charity) Enterprise involves taking risks, showing initiative and a willingness to undertake new ventures Understanding customer needs Customer needs are central to starting a business How to collect and interpret primary and secondary research in the context of starting a new business; the difference between qualitative and quantitative data The value of market knowledge through direct customer contact Customer demand Demand depends on price, price of rival brands, fashion, taste, how easy it is to find and buy, promotion and product trial

1. An introduction to business enterprise What is a business? 22/09/2018 1. An introduction to business enterprise What is a business? A business is a specific type of organisation which exists to sell products (goods or services) to customers. Customers can be private individuals, like ourselves, or other businesses. Businesses aim to supply customers with the products they want so that they can make a profit. Goods are tangible things that are produced, bought or sold, then finally consumed. Services are activities that other people or businesses do for you.

1. An introduction to business enterprise What is a business? - Why? (why do people start businesses?) - Who? (what makes these people do it? What qualities do they have? E.g. Risk taking) - How? (Trial? drop everything and do it?) Straight into the session!

Why do people start businesses? Who? 22/09/2018 Why? Why do people start businesses? Who? What makes these people do it? What qualities do they have? How? How do people start businesses? E.g. To start something new E.g. Risk taking E.g. Drop everything and invest in the new business To do something different People with Skills Can listen as well as speak Can plan and organise Can persuade others Trial run To be your own boss People with Resources Finance Exceptional knowledge of a specific topic Franchise To make a profit People with Personal qualities: determination, Resilience, Enthusiasm Hard-working, Decisive Willing to take risks Partnership

1. An introduction to business enterprise 22/09/2018 1. An introduction to business enterprise The Startup Entrepreneur Guide To Starting A Business https://www.youtube.com/watch?v=UktKFnMFBZA

2. Understanding customer needs – customers wants and needs 22/09/2018 2. Understanding customer needs – customers wants and needs Customer needs are the wants and desires of buyers of a product OR customers of a business. E.g. Clean and tidy atmosphere Polite and helpful staff Stock availability Good prices Speed Reliability Variety After sales service Quality

2. Understanding customer needs – Market Research 22/09/2018 2. Understanding customer needs – Market Research Market Research is the process of gaining information about customers, competitors and market trends through collecting primary and secondary data. Primary research is first hand information carried out by your own business. No one else has done this for you! It is expensive to collect, analyse and evaluate the data. E.g. Questionnaires, testing, observation and telephone interviews Secondary research is also called Desk research. It is about looking at information that has already been collected about the market by other companies and which you can use to help to run your business successfully. E.g. Company Accounts, Retail data - loyalty cards, till data, Magazines and Newspapers

22/09/2018 2. Understanding customer needs – Quantitative and Qualitative Information Quantitative – based on numbers – “49% of young people in England are likely to enter higher education, according to the latest official estimates” – doesn’t tell you why, when, how Qualitative – more detail – tells you why, when and how!

3. Customer demand Demand and Supply 22/09/2018 3. Customer demand Demand and Supply Demand – The amount that an individual or individuals are willing to buy at any given price Effective demand – Demand backed up by the ability to pay Demand increases as price decreases Supply - The amount of goods that producers are willing to supply / sell at a given price Supply increases as price increases

3. Customer demand The Equilibrium 22/09/2018 3. Customer demand The Equilibrium Price equilibrium is found where supply and demand are equal. This is the point where both sellers and buyers are happy with the price and quantity.

3. Customer demand Factors affecting demand 22/09/2018 3. Customer demand Factors affecting demand Demand depends on: The price The price of rival brands Fashion and taste How easy it is to find and buy How well promoted it is Whether there was a chance to trial the product https://www.youtube.com/watch?v=Enz6z9jGmsk 3min 14secs Make notes on the factors affecting demand during the video

Activity – Demand poster 22/09/2018 Activity – Demand poster Create a poster to explain the factors which affect demand for your favourite product. They might include: The price The price of rival brands Fashion and taste How easy it is to find and buy How well promoted it is Whether there was a chance to trial the product There are more examples in your exercise book! You have 20 minutes

Extension Next lesson we will be doing Market Mapping 22/09/2018 Extension Next lesson we will be doing Market Mapping A market map is a diagram that identifies all the products in the market using two key features e.g. Chocolate being put on a scale of price and quality

22/09/2018 Homework None today 

Look forward Next lesson we will be doing Market Mapping 22/09/2018 Look forward Next lesson we will be doing Market Mapping A market map is a diagram that identifies all the products in the market using two key features How to analyse customer buying habits and preferences How businesses can identify market segments How businesses can map their market to set out the key features of the market they are planning to operate in and identify a market gap