Sit down in the seating plan and silently complete the starter Door Board TEACHERS DESK Aditya Rabbab Jahangir Balween Harry Mulki Shuyeb Trish Yugesh Edmond Nasir Nice Charlotte Simran Joe Brijesh Samuel Shamar Maruf Imran Anthony Lidia Rahat Asil Bonnie Jack Mason Yassir Ria 1005-1007 - Taking a seat and starting – 2 minutes Sit down in the seating plan and silently complete the starter Thursday, 08 November 2018 Protecting property

Taking a calculated risk Lesson 1.12 Edexcel GCSE Business Studies

Starter answer 1. All business involves risk. Large, well-established businesses face risks (Woolworth’s? General Motors?); so do small, start-up businesses. Risk tends to be much higher for new businesses. A large number of new businesses fail within their first 3 years of trading. Risk is not a negative word. Taking risks can yield big rewards; often, the bigger the risk, the bigger the reward. However, risks need to be managed with care; the best type of risk to take is a calculated risk. This involves considering the chances of an event happening plus the costs or benefits to the business if the event does happen. 2. F, F, T, F

Title: Taking a calculated risk WALT: We are learning to... (Read these aloud as a class. Do not copy them down.) 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. 3 Appreciate that seeing mistakes is part of the process of learning to succeed. 5 Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions.

Taking a calculated risk What is a calculated risk? Imagine that you are a teacher for a day. You are planning to take 29, year 10 students camping in Lake District. You have 5 minutes to: List, in pairs, things that could go wrong… Extension: If there are so many risks/dangers involved with trips, why do teachers/schools take students on trips? What are the benefits?

Taking a calculated risk What is a calculated risk? A risk that has been given thoughtful consideration and for which the potential costs and potential benefits have been weighted and considered 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. AO1

If there are so many risks, there must be some rewards?

Taking a calculated risk Rewards of enterprise Financial Profits Non-financial Satisfaction Control 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. AO1

Taking a calculated risk Rewards of enterprise You have 5 minutes to: 1. Discuss in pairs financial and non financial rewards of enterprise 2. Create a table of at least 2 financial and 2 non-financial rewards of enterprise Extension: 3. Come up with more than 2. Financial rewards Non-financial rewards E.g. Dividends – taking profits and cash out of the business E.g. Satisfaction – a sense of satisfaction from gaining a positive result from a risk 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. AO1

Taking a calculated risk Financial rewards Profits – usually reinvested into the business in the early years Dividends – taking profits and cash out of the business Capital growth – an increase in the value of the business 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. AO1

Taking a calculated risk Non-financial rewards A sense of satisfaction Building something Being in control Making that first sale Opening a new location Employing more people Getting an industry award or good publicity Getting great feedback from customers 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. AO1

Taking a calculated risk Learn from your mistakes In 1985, Steve Jobs was fired from Apple Computer, the company he founded as a college dropout. After some less successful forays into computing at NeXT, and some highly successful trips into animation at Pixar, Steve was hired back as the CEO of Apple Computer, now a struggling PC company with a bloated model line. The next decade saw Steve Jobs completely redesign Apple, shredding away the uninspiring 90s image and bringing in a new focus on clean design and slick usability. From successes in computing with the iMac in the late 1990s to even bigger successes in music with the iPod in the early 2000s, Apple Inc. has gone from strength to strength since Steve’s return. In 1985, Steve Jobs was fired from Apple Computer, the company he founded as a college dropout. After some less successful forays into computing at NeXT, and some highly successful trips into animation at Pixar, Steve was hired back as the CEO of Apple Computer, now a struggling PC company with a bloated model line. The next decade saw Steve Jobs completely redesign Apple, shredding away the uninspiring 90s image and bringing in a new focus on clean design and slick usability. From successes in computing with the iMac in the late 1990s to even bigger successes in music with the iPod in the early 2000s, Apple Inc. has gone from strength to strength since Steve’s return. 3 Appreciate that seeing mistakes is part of the process of learning to succeed. AO1

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 For those students who require extension work they can complete this activity. They should write out their answers in essay form. 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

Taking a calculated risk Plenary - Write me a either a Facebook status or Tweet about something you’ve learnt today Write your Facebook update in your book, starting with your name... Write a tweet in your book, starting with a username... #business 1 Understand the principle of taking a calculated risk. (AO1) 2 Understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome viability of a start-up. (AO1) 3 Appreciate that seeing mistakes is part of the process of learning to succeed. (AO1) 4 Apply your knowledge of taking calculated risks to a business scenario (AO2) 5 Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. (AO3)