How important was big business in the growth
Generating and Protecting Business Ideas * sources of business ideas * the Identification off product or market niche franchises * copyright, patents and trademarks. The sources of Ideas may Include brain-storming, own personal experience and business experience. The generation of business ideas must be in relation to a small business with limited resources. Students should be familiar with the formation and operation of franchises and understand the benefits and pitfalls to franchisers or franchisees of operating a franchise as opposed to starting a new business.
Transforming Resources into Goods and Services * Inputs. Outputs and the nature of the transformation of resources Into finished products * adding value. ‘OFFS remarry industries. Developing Business Plans * the purpose and contents of business plans * sources of information and guidance. Students should be aware of the benefits and problems of plans/planning for small businesses. The planning process involves decisions based on the resources to be used and factors providing competitive advantage. The sources of information should include: small business advisors, accountants, bank managers and government agencies.
Conducting Start-up Market Research * methods of primary and secondary market research * qualitative and quantitative research * size and types of samples factors influencing the choice of
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Understanding Markets * the nature and types of markets * the importance of demand * types of market segmentation * market size, growth and share. Students should be aware that markets take different forms, egg local, national, hysterical and electronic. Students should know that demand is affected by a range of factors including the price of the product, competitor actions, consumer incomes, success of businesses’ marketing and seasonal factors. Students should be aware of the benefits and drawbacks of types of segmentation.
Students should be able to calculate market size, growth and share. Choosing the Right Legal Structure for the Business * sole traders, partnerships, private limited companies and public limited companies * not-for-profit businesses. Students should be aware of the benefits and drawbacks of legal structures and understand ply’s as a means of comparison. Raising Finance * sources of finance available to start businesses. Sources of finance should include: ordinary share capital, loan capital (bank loans, overdrafts only), venture capital and personal sources.
Students should be aware of the advantages and disadvantages of these in specific * factors influencing start-up location decisions. The factors should include: technology, costs, infrastructure, the market and qualitative factors. Students should understand that their relative importance may vary according to the type of business. Employing People types of employees used in small businesses * using consultants and advisors. The types of employees should include: temporary, permanent, full-time and part- time.
Students should be aware of the reasons, drawbacks and difficulties of employing people and/or using consultants and advisors. Financial Planning This section provides students with an understanding of key financial concepts essential for the planning of small businesses. Students will be expected to carry out calculations and to be able to interpret their results. SPECIFICATION Calculating Costs, Revenues and Profits * fixed, variable and total costs price, total revenue and profit. Students should understand the relationships between cost, price, revenue and profits.
Using Break-Even Analysis to Make Decisions * contribution and contribution per unit * calculation of break-even output * construction of break-even charts * analyzing the effects of changing variables on break-even charts. Students should understand how start-up businesses may use contribution and break-even to analyses the impact of different costs and prices, and make decisions on whether to start the business. Students should be aware of the strengths and weaknesses of break-even analysis.
Using Cash Flow Forecasting * the nature of cash flow * how to forecast cash flow * the structure of a cash flow forecast * why businesses forecast cash flow. Students should understand the sources of information for cash flow forecasts and understand the significance of the forecasts. Students should be able to amend or complete a cash flow forecast. Setting Budgets * income, expenditure and profit budgets * the process of setting budgets * problems in setting budgets. Students should be aware of the reasons for setting budgets and the problems in so doing.
Assessing Business Start-ups * objectives of business start-ups strengths and weaknesses off business idea and/or plan * why start-ups can be risky * why start-up businesses may fail. Students should be aware that objectives for start-ups may vary and that determinants of success and failure depend upon the circumstances. Causes of failure should include: unexpected changes in demand or costs, unavailability of supplies and delays. BUSINESS UNIT 2: http://www. Tutor. Net/blob/index. PH/business-studies/comments/aqua-as- business-buses-exam-topic-tracker http://www. Tour. Net/blob/index. PH/business- studies/comments/aqua-as-business-unit-2-revision-quizzes Finance This section introduces students to the importance of the management of finance. Students should understand that financial measures can be used to indicate how well a business is managed and should understand actions that can be taken to improve financial performance. Students will be expected to carry out calculations and to be able to interpret their results. This section builds upon ‘Financial Planning’ unit 1.
SPECIFICATION Using Budgets * the benefits and drawbacks of using budgets * the calculation and interpretation of favorable and adverse variances * using variance analysis to inform decision-making. Students should be familiar with income, expenditure and profit budgets. They will not be required to analyses budgets by price and volume, nor to use flexible budgets. Improving Cash Flow * causes of cash flow problems * methods of improving cash flow. Students should be familiar with a range of techniques to improve cash flow including: overdrafts and short-term loans, factoring and sale or sale and leaseback of assets.
Measuring and Increasing Profit * the calculation and understanding of net profit margins * the calculation and understanding of return on capital * methods of improving profits/profitability the distinction between cash and profit. Students do not need any understanding of the balance sheet or income statements. Students do not need any knowledge of capital employed. Return on capital relates to Methods of improving profits should include cost reduction and price rises but also an understanding of the possible implications of these decisions.
People in Business This section considers the issues that managers face in relation to managing the human element to make a business more effective. Students should appreciate the value of these techniques in tactical decision-making. SPECIFICATION Improving Organizational Structures * key elements of organizational structure * workforce roles * how organizational structure affects business performance. Key elements should include: – levels of hierarchy/spans of control – work loads/Job allocation – delegation – communication flows. The workforce roles include: supervisor, team leader, manager and director.
Measuring the Effectiveness of the Workforce * methods of measuring workforce performance. Students should be able to calculate and interpret measures such as labor productivity and labor turnover. Developing an Effective Workforce: Recruitment, Selection, Training * the recruitment process * internal and external recruitment * selecting the best employees * how recruitment and selection can improve a workforce * methods of training. Types of recruitment and the recruitment process should include the stages from identifying a vacancy to receipt of applications.