1. How wisely have you used your time?
Last lesson
How wisely have you used your time?

2. Feedback from Dial a Dog!
Your last chance to learn from exam practice technique

3. a) Analyse the possible factors that Paul Stamp should consider when looking for new premises for his business (10 marks)
Content
3 marks
Application
Analysis
4 marks
Level 3
Answer demonstrates thorough understanding of location influences
Level 2
2 marks
Answer demonstrates some understanding of location influences
Answer makes good application to the case study
3 – 4 marks
Thorough analysis of location influences
Level 1
1 mark
Answer demonstrates limited understanding of location influences
1 -2 marks
Answer makes limited application to case study
1 – 2 marks
Limited analysis of location influences

4. Relevant points of discussion could include:
The costs of purchasing/renting the premises
The availability of funds to purchase premises (own funds/bank loans etc)
Where are the majority of his customers? Is there a need to locate near to them or is he more footloose?
Rival companies – is there a need to locate near to them?
Help from local authorities, eg financial help to locate somewhere, planning permission etc
Impact upon his quality of life, eg travelling some distance to new premises etc

5. b) Paul was thinking of converting Dial a Dog Wash from a sole trader to a partnership. What advice would you give Paul to help him make a decision? (15 marks)
Content
4 marks
Application
5 marks
Analysis
6 marks
Level 3
3 - 4 marks
Answer demonstrates thorough understanding of both legal structures
4 -5 marks
Thorough application of answer to the case study
5 – 6 marks
Thorough analysis of reasons for changing legal structure
Level 2
2 marks
Answer demonstrates good understanding of legal structures or thorough on one legal structure
3 marks
Good attempt to apply answer to the case study
3 – 4 marks
Good analysis of reasons for changing legal structure
Level 1
1 mark
Answer demonstrates some understanding of legal structures
1 -2 marks
Limited attempt to apply answer to the case study
1 – 2 marks
Limited analysis of reasons for changing legal structure

6. Relevant points of discussion could include:
Define key terms 1st!
Explanation of features of sole traders and partnerships
Sharing of ideas/ responsibility
Extra source of funds from partner
Reduced pressure on Paul – has less to do on every day activities
He could take more responsibility and let partner do menial jobs – depends how partnership is defined
As business grows in size, it needs more organising, which he cannot do himself
Could move to limited partnership with sleeping partner having limited liability which encourages investment

7. Relevant points of discussion could include:
However….
Profits have to shared out – so could mean less for him
Needs right person - so there is less chance of conflict
Need to consult with partner so direction of business might change form what Paul wants
Paul could be liable for actions of partner and could lose personal assets of he still has unlimited liability

8. c) To what extent would carrying out primary and secondary market research guarantee the success of Dial a Dog Wash (15 marks)
Content
4 marks
Application
5 marks
Analysis
6 marks
Level 3
3 - 4 marks
Answer demonstrates thorough understanding of both primary and secondary research
4 -5 marks
Thorough application of answer to the case study
5 – 6 marks
Thorough analysis of carrying out market research plus other factors which influence business success
Level 2
2 marks
Answer demonstrates some understanding of primary and secondary research or thorough understanding of either
3 marks
Good attempt to apply answer to the case study
3 – 4 marks
Good analysis of importance of carrying out market research plus some analysis of other factors
Level 1
1 mark
Answer demonstrates limited understanding of primary or secondary research
1 -2 marks
Limited attempt to apply answer to the case study
1 – 2 marks
Limited analysis of importance of carrying out market research

9. Research will help with meeting customer needs, ie marketing mix
Relevant points of discussion could include:
Define key terms 1st!
Explanation of features of primary and secondary research with examples of each
Secondary research provides over view of market and quantitative analysis
Primary research provides detailed information about local market and customers thoughts, ie qualitative analysis
Research will help with meeting customer needs, ie marketing mix
Research will help identity changes in market which Paul can respond to, ie could help give him a competitive advantage over rivals

10. However….
Quality of research could influence how good it was and impact it has upon the success of the business, eg poor quality research could lead to poor decision making which could affect performance
Research findings could be accurate when collected, but changes to external environment could make data flawed, eg economic recession could lead to customers spending less on dog grooming
Other factors influence business success, eg availability of funds, the desire of the entrepreneur to succeed, the USP of a product
How competitors respond to a new company entering the market – if the market is growing they might feel that a new company poses little threat, but if markets are contracting competitive pressures become more acute and more difficult for a new firm to survive

11. Key skills to use in the extended mark Q

12. Having problems with ANALYSIS marks….? Try this as an example….
One of the key benefits of being a sole trader is that the owner has complete control and direction over the business. The sole trader can make his/ her own decisions such as , therefore

13. Having problems with Evaluation marks….? Try this as an example….
Paul was thinking of converting Dial a Dog Wash from a sole trader to a partnership. What advice would you give Paul to help him make a decision?
Need to explain one point…
Plus
Minus
It depends on….

14. Did you try the other Q’s?
Mark your own work…

15. What is meant by the term primary market research? (2 marks)
Primary market research involves the collection of original/first hand information for a specific purpose

16. b) What is meant by the term sales budget? (2 marks)
A sales budget shows the planned income for a business over a set future time period

17. Someone who is prepared to take risks Someone who is innovative
two characteristics of a successful entrepreneur such as Paul Stamp ( 1 mark each)
Someone who is prepared to take risks
Someone who is innovative
Someone who is determined
Someone who can spot a business opportunity
Someone who is not afraid of failure

18. d) Explain one reason why it was important for Paul Stamp to carry out secondary market research when setting up his business (4 marks)

19. d) Explain one reason why it was important for Paul Stamp to carry out secondary market research when setting up his business (4 marks)
Secondary research is information which has already been collected by some one else
Secondary data would give information about the market as a whole, eg value of sales
Secondary data could show what has happened in the market over time, ie identify trends, eg growth of sales
Secondary data might help him make a decision on whether it was worthwhile setting up in the dog grooming market

20. e) Use information in the text and Table 1 to calculate Dial a Dog’s budget sales revenue for June, July and August (6 marks)
Content
2 marks
Application
4 marks
Level 3
Calculations are completed correctly
Level 2
Answer shows good understanding of meaning of sales budget with formula for calculating sales budget
Some errors in calculations
Level 1
1 marks
Answer shows limited understanding of meaning of sales budget
1 mark
Limited attempt to calculate sales budget

21. e) Use information in the text and Table 1 to calculate Dial a Dog’s budget sales revenue for June, July and August (6 marks)
Sales revenue budget – a plan for how much income Dial a Dog Wash will generate between June and August 2007

22. f) Calculate the percentage growth in the UK market for dog grooming sales between 2005 and (4 marks)
Content
2 marks
Application
Level 2
Answer shows good understanding of meaning of market growth by providing definition or formula
Answer successfully calculates market growth
Level 1
1 mark
Answer shows limited understanding of meaning of market growth or formula is wrong
Limited attempt to calculate market growth figures

23. f) Calculate the percentage growth in the UK market for dog grooming sales between 2005 and (4 marks)
Market growth measures the increase in the value of sales in the dog grooming industry between 2005 and 2006
Market growth = change in sales between 2005 and 2006 / sales on 2005 * 100
= 5/35 * 100 = 14.28%

24. Last chance for questions…
Use your post-it notes….
Let the students have the rest of the lesson to work through a worksheet of ‘revisions questions’ – taken from AQA BS endorsed book – Foden!
While they work through this – they can ‘post’ their notes onto the white board – or for teacher to collect and put onto whiteboard – for last 5 mins of lesson…

25. Local
markets
A market is anywhere where buyers and sellers come together to transact with each other
Types of market
National
markets
Physical
markets
Electronic
markets

26. Factors that affect demand

27. Factors that affect demand
Prices
Incomes
Tastes & fashions
Competitor actions
Social & demographic
Seasonal
Government action

28. Market segmentation
Segment B
Segment C
Segment D
Segment A

29. Attractions of niche for a start up
Smaller & fewer big competitors
Chance to add value = better profit margin
Easier to reach customers
Often higher growth of market

30. Analysing the market
There are three calculations you need to be able to complete in order to analyse market data in Unit 1
Market size (volume and value)
Market growth (percentage growth)
Market share (percentage of the market owned by each product or competitor)

31. Motives for being an entrepreneur
Financial
Capital gains
Making a living
Personal
Proving people wrong
Gaining control
Building something
Social
Giving something back

32. Different Types of Start-up
Aims
&
Objectives
Part-time businesses
Social enterprises
Lifestyle businesses
Ambitious businesses
Different Types of Start-up

33. So what can go wrong with a business plan?
Business planning
Two main purposes:
A detailed plan for success
A tool to raise finance
So what can go wrong with a business plan?

34. Over to you!

35. Why Business Plans go wrong
No market in the gap
Poor market research & unrealistic plan
Competitor response
Good idea, poor execution
Wrong people; poor management
Growth is too quick (overtrading) or too slow
Failure to manage cash flow
External shocks
Economic change (credit crunch, oil prices)
Legal & social change

36. Exam on Tuesday 13th January
Just in case you’ve forgotten!
Exam on Tuesday 13th January
In the afternoon…..
So you can have the morning for revision if you want to….
At home or in the work room/study centre, but cannot just ‘skive’ lessons…. the time is given to you for revision work!