BUSINESS STUDIES REVISION

THE BIG EXAM SECRET! There is a trick to passing exams! It is called exam technique It is not just about what you know or don’t know It is about following some simple rules.

STARTER Catchphrase: Case study e.g.(s) 

EXAM TECHNIQUE RULES ‘Scan Read’ the question and underline key terms. Read any case study / information you are given and underline or highlight important bits. Re - Read the question and underline key terms. When you answer the question – make sure that you mention something from the case study. Make one point for each mark available. PEE to get the higher marks – Point; Evidence; Explain

The Profit Rule PROFIT impacts on most business decisions. In MOST Business Studies questions you will be able to get marks for using PROFIT as your JUSTIFICATION e.g. Level 2 Students should put in steps between the issue e.g. poor customer service and the effect on profit: L1 Answer: The result of poor customer service will be less customers, leading to less profit. L2 Answer: Poor customer service will lead to a poor reputation, will lead to fewer customers, will lead to lower profit, will lead to business closing down. Try These: Poor quality will lead to ……. Good quality will lead to ………. Good customer service will lead to ………..

The costs rule Most Business Decisions will have financial COSTS. You will get marks in the exam for identifying any of these: A disadvantage of (e.g.) primary research is the cost. A disadvantage of (e.g.) building a new office is the cost. A disadvantage of advertising is the cost. A disadvantage of ……………… is the cost

Revision Topic 1 – Business Ownership Types of Ownership 1. Businesses for Profit: Sole Trader Partnership Private Limited Company (Ltd) Public Limited Company (PLC) Franchises 2. Not For profit: Charities Public Sector For each you need to: Define Advantages Disadvantages Examples You must understand: Limited Liability & Unlimited Liability Profit & Not For Profit Franchisee & Franchisor

Franchises Name the business: Burger King Franchisor is …….. The Big business with the well known name. Franchisee is …… Small business paying to use the name of the big business Have to follow rules Also, have to pay a licence fee to use the name Have to pay a Royalty payment (Profit Share)

Topic 2 – Aims, Objectives & Mission Statements Most businesses have the following objectives: Survival Profit Grow Good Customer Service Good Reputation Why do businesses have aim & objectives? Something to aim towards. Measure Progress Give workers a focus Attracts customers Ethical & Sustainable You need to know the difference AND give examples of actual firms: 1. Ethical : This means doing the right thing with regard to people / animals e.g.: Pay wages above the legal minimum Good working conditions Support the community Don’t test on animals E.g. Primark; Fairtrade 2. Sustainable: This means acting in a way that protects the environment: Recycle Re-use Reduce E.g. M&S Plan A; Rainforest Alliance TASK: Find 3 firms that use ‘Fairtrade’ or RainForest Alliance’ logo. Research and describe their ethical or sustainable actions.

Revision Topic 3 – Legal Requirements of Business There are 3 main areas to be aware of: Equality laws - Equality Act – age, race, gender, religion etc Employment Laws – Minimum Wage Act; working conditions; sickness & maternity Health & Safety at Work Act (1974) Consumer Protection Act (1987) (Finance & Tax rules - does not often come up) TASK: Investigate the first 4 areas of law above. For each one: Identify the names & dates of the main laws in each area. Briefly explain the main provisions of each law State how a firm could be affected by the law.

Revision Topic 4 - Stakeholders Internal Stakeholders: Owners / Shareholders Workers Managers External Stakeholders: Customers Community Competitors Suppliers Government Families Q. What are ‘stakeholders? Any person, business or group connected with a business in any way. For each stakeholder you need to explain: What is their link to the firm? How are they affected by the firm? How can they influence the firm? KEY QUESTION: - Can you describe conflicts between different stakeholders in an actual business that you have studied?

Topic 5 - Enterprise Q. What is ‘Enterprise’? It is a way of doing things to make your business perform better! Examples of Enterprise: Open different hours Open in new locations Invest in new technology On-line activity Different ways of working /selling / production etc QUESTION: How can staff help a firm to be enterprising? ANSWER: Taking part in new projects Flexible working. Personal recommendation Invest in the business Being innovative Using your initiative

Revision Topic 6 – Functional Areas You need to understand the following functional areas of business: Marketing Finance Production (Operations) Human Resources Admin / ICT For each of the functional areas you need to be able to do the following: Define Explain the main activities of the functional area Explain how the functional area contributes to the success of the business. What would happen if the functional area did not work properly. Describe real business examples of each different functional area.

Use of ICT 2013 Past paper Q 4.a.i How has a business CHANGED the use of ICT? One mark for each point of description up to a maximum of three descriptive points, but also allow development marks. Allow answers about new equipment or how the current equipment is used differently. The answer must describe how not explain why. 4.a.ii Benefits: Speed / Efficiency Accuracy Quality Less waste Lower wage costs You need to give EXPLANATION of each one 4.a.iii Drawbacks: Cost Breakdown / maintenance Training

Revision Topic 8 – Why Businesses Start Give reasons why a business starts – e.g. meet the needs of a target market, gap in the market, innovative idea 2. Identify types of business activity: Primary – Farming, Fishing, Forestry & Mining Secondary – Manufacturing (making) of goods (consumer and capital goods), Tertiary – Retailing & Services (leisure, financial, communication, health, transport etc) You need to be able to give examples of all of the above

REVISION TASK 9 - PESTLE What does PESTLE stand for? Economic: Political Economic Social Technological Legal Environmental For each PESTLE factor explain how they could / have impacted on a business. Give consequences of these changes on the business e.g.: success, failure, growth, market share, profit etc Economic: For each below: Define how an increase can affect a business: how a reduction can affect a business: Inflation Unemployment Interest rates Exchange rates

Revision Topic 10 – People in Business Starter: What is the ‘Investors in People Award’?

Revision Topic 10 – People in Business 2. Working Relationships How do employees and employers develop a good working relationship? e.g. meetings, appraisals, training, good communication, physical working environment and facilities, motivation & reward schemes such as employee of the month. QUESTIONS: What are the benefits to a firm of developing good working relations with its employees? What are the drawbacks or costs? What is ‘Investors in People’? TASK 1 Give an example of a business you have studied that has developed good working relationship with its employees. Employers/employees – working relationships & rights and responsibilities (Acting in an enterprising way is only one small part of the employee/employer relationship) 1. Rights & Responsibilities i. What employees expect from employers: E.g. suitable working conditions, contract of employment, equal opportunities, safe working conditions ii. What employers expect from employees: e.g. punctuality, adherence to procedures, fulfillment of job role, complying with health and safety procedures iii. Employment Laws: e.g. The Employment Rights Act (1996), The Equality Act (2010); Minimum Wage Act

10 Mark Question Tips Start by ‘BUGging’ the question – there are always 2 parts to the question You will usually get a choice of 2 or more options. You need to consider: Advantage(s) & Disadvantage(s) of EACH Option Conclusion – Choose one of the options as the one to recommend. Link your answer to the case study info!!! Do NOT make a conclusion at the beginning!! Make sure that you answer ALL of the questions. Level 1 Answer – LIST advs & disadvs & STATE a conclusion – max = 5/10 Level 2 Answer – EXPLAIN WHY they are advs & disadvs for the specific situation in the case study & JUSTIFY your conclusion- max 10/10 

10 Mark Questions – 2 parters June 13 The shareholders of Nantwold Hall Ltd took risks in: • spending a large amount of money updating the hotel • temporarily closing the hotel while the work was being done • spending money promoting the re-opening of the hotel Q1: What would have been the likely consequences to the shareholders of Nantwold Hall Ltd of not taking these risks? Q2: Which consequence would have had the greatest impact?

10 mark questions 2 parters – June 13 Q1. Evaluate the advantages and disadvantages to Lucy of setting up her ice cream parlour with a franchisor or on her own. Q2. Which would you recommend she should do? Give reasons for your answer. You MUST answer BOTH parts to get a grade C !!!

10 Mark Questions There are usually 3 10 mark questions on each paper. They will include: In the case study …….. With reference to a business you have studied ……… It vital that you read the question carefully as there are usually two parts to the question e.g. - What different methods exist to help motivate workers. - Justify the method that you think would be most suitable

10 Mark Questions Based on the case study: You should be able to easily get at least 6 out of 10 if you follow these simple rules: Consider ALL of the alternatives you are given Give at least 1 advantage & 1 disadvantage of EACH one. Look for clues in the case study – e.g. what are the problems / issues affecting the firm? Link these specifically to the case study / your chosen business Specifically means e.g. if it is a garage mention garage things such as MOTs, servicing cars, Booking in for a service etc.

10 Mark Questions Make sure you name the business Give the TYPE (Primary, Secondary or Tertiary) Answer: Go through at least 3 different methods that the business uses Explain each one or list advantages / disadvantages as asked Conclusion: Make sure you answer the final part of the question 2. Based on a business you have studied: EG1: Analyse the marketing activities of a business you have studied. Which method do you think is most successful? EG2: Analyse the ways that a business you have studied motivates its workers. Which method do you think is most successful?

What does ‘Explain’ Look like? The tourism sector is a very competitive one and in order to stay ahead of the competition Luxury Cottages needs to make changes to its existing business practices (L1). This is a statement with no explanation of a type of change! Luxury Cottages could think about introducing new destinations for its cottages, by having holidays further away than Wales. This would increase the target market and attract new customers to Luxury Cottages (L2). Clear example of a change and an explanation of the IMPACT on the firm

4 Things to write as soon as you can start the exam Case Study Examples!!!!! Profit Rule Costs Rule Real Business Examples!!!