GCSE Business Unit 1 AQA

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  • Business Studies Unit 1 (AQA)
    • Starting A Business
      • Business Objectives
        • Smart Targets
          • Acheivable-Can the business actually complete the target
          • Measurable-The objective needs to be tracked
          • Realistic-Can the target be acheived
          • Specific-Detail is important when running a business
          • Time Related-How long will it take th business to complete is target.
        • The goal of the business is what it wants to acheive in the long term.
        • The objectives of a business is a short term target.
        • The business' aims are completed by completing objectives.
      • Business Plans
        • A business plan is like a map. A business might know its objectives but might not know how to acheive them.
        • A sole trader will make a business in order to gain investment from the bank or investors.
        • The negatives of a business plan is that you can't predict what will happen and figures could be miscalculated.
        • A business plan will lower the risk of a business as the business will have some direction for the future
      • Stakeholders
        • Stakeholders are someone with an interest in the business
          • Eg Customers, managers or suppliers
        • This affects the business as for the business to run smoothly it needs to satisfy stakeholders
      • Business Start-up Options
        • Sole trader
          • A common way to start a business, wher one person owns the entire business
          • Drawbacks:Unlimited Liability (any debts of the business has to be paid by the owner), limited finance, reliant on health of owner.
          • Benefits:Simple to set up, Inexpensive to set up, owner has complete control
        • Partnership
          • Benefits:Simple to set up, Inexpensive to set up, owner has complete control
          • Drawbacks:Unlimited Liability (any debts of the business has to be paid by the owner), limited finance, reliant on health of owner.
          • This is where two or more people (under 20) start a business
        • Franchise
          • A franchise is where a person pays to take an established brand name.
          • Advantages for Franchisee:Low risk, shop area bought,training and free advertising
          • Disadvantages for Franchisee:£50,000 for the name, tough process,royalties
      • Small Business Problems
        • No experience
        • Don't know any business law
    • Operations Management
      • Suitable Locations
        • Labour-is there enough people to work for the business
        • Where are the Raw Materials?-Can you get the resources to make your product
        • Transport Links-How easily can your supplies get to you
        • Competitors- Small business tend to avoid competition
        • Technology-Does the business nedd internet/phone connection
        • Available Locations- what locations are available
        • Cost-Can the business afford the location
        • Type of Business- How will the customers find the business
        • A business needs to choose where it would be best to operate from
      • Customer Service
        • "Providing services to customers before,during and after sales, to standards thatmeet the ir expectations
        • Before
          • Up-to-date webpage
          • Good advertising
          • Wide Range of product
          • Good image
        • During
          • Quick purchase
          • Employees need to be helpful
          • additional services
        • After
          • Delivery service
          • Refund policy
          • Easy contact to store
          • UK call centres
      • Consumer Protection
        • "Laws protecting you when you buy something and protect the interests of consumers"
        • Disadvantages to not following the laws:Csots money and time to comply with laws, can lead to prison
        • Advantages to following the laws: Loyal customers, good press and prevents unfair competition
      • E-commerce
        • "Sales of Goods and services (and Buying) using the internet
        • Advantages:Cheap,cheaper suppliers can be accessed
        • Disadvantages:Needs updating,Consumers need a computer and there is no personal contact
      • Quality
        • "a product/service that filfulls its job well"
        • Not necesseraly have to be the best available
        • Advantages: Repeat custom, reputation and profit
      • Production
        • "Job Production- a method of production that is made to satisfy the exact requirement of the customer"
        • "Batch Production-where a group of similar products are produced at the same time"
        • "Flow Production-where products are continuously made"
        • Disadvantages of Job:labour intensive and expensive
          • Advantages of Job: high motivation and quality
        • Advantages of Batch:Lower costs and some variety
          • Disadvantages of Batch:repitition and storage costs
        • Disadvantages of Batch:repitition and storage costs
        • Advantages of Job: high motivation and quality
    • People in Business
      • Recruitment
        • The stages
          • Job description-describes duties
            • Person Specification-Key skills needed
              • Advertise the job
                • Shortlist Candidates
                  • Interview
        • Internal Recruitment
          • Disadvantages
            • Smaller number of skills
            • No new ideas
          • Advantages
            • Cheaper
            • Know the person
            • Experienced
        • External Recruitment
          • Disadvantages
            • Staff are less valued
            • Expensive
            • Might not fit in thebusiness
          • Advantages
            • Larger variety
            • Less specific training
            • New Ideas
      • Motivation
        • Monetary
          • Comission
          • High Pay
        • Non-monetary
          • Friendly Working ENvironment
          • Responsibility
        • Maslow and Herzberg
        • Benefits
          • More sales
          • Higher quality
          • Good customer service
        • "The desire to do something well"
      • Legislation
        • The race discrimination act. This means that no-one is discriminated against when applyingf for a job
        • The minimum wage act means employers have to pay a certaian amount to employees
        • "Legislation are laws which protect businesses and employeeees.
        • This costs businesses money as they have to keep following the laws, and if not could be jailed or fined
      • Full or Part Time
        • "Temporary is short term work with no contract"
        • "Part time is working for a proportion of the week (18 hours)"
        • Full Time advantages
          • No divided Loyalties
          • Fewer staf needed
          • Easier to Manage
        • "Full Time is working for the normal full working week (eg 37 hours)"
        • Part Time Advantages
          • Used at busy wages
          • More flexible
          • Deals with customers faster
    • Finance
      • Sources Of Finance
        • "Sources of Finance is where the business gets its money from"
        • Examples
          • Overdraft
            • Disadvantages : High interest rates and th ebank can ask for the money at any time
            • Advantages: can be used a lot of times
          • Bank Loan
            • Advantages:Large amounts and doesnt get paid back in one go.
            • Disadvantages: Interest Rates and repayment terms must be met
      • Cost,Revenue and Breakeven
        • "Revenue is the amount made from sales"
        • "Cost the expenses paid for producing goods and services"
          • Variable Costs
            • "Costs that change with Output"
            • Materials
            • Packeging
            • Transport
          • Fixed Costs
            • Loans
            • Rent
            • "Fixed costs stay the same no matter what"
        • "Profit is what is left after costs have been deduced from revenue" (profit=revenue-costs)
      • Cash Flow
        • "Caash flowing in and out of the business"
        • This helps to get a loan from the bank
        • A cash flow forecast helps a business to wether it needs to get a loan by trying to plan for the future
    • Marketing
      • Place
        • What channel of distribution does a product take to reach a consumer
        • can happen through a retailer, a wholesaler or an agent
        • Place is important as businesses save money buy using the most direct channel of distribution
      • Price
        • This is affected by demand and new businesses struggle to find a good balance between high demand and a high price.
        • Businesses price so that they never make a loss on a product.
      • Promotion
        • This is important for a small business as consumers will be unaware of the business without promotion.
        • Word-of-Mouth
          • Where someone goes to a businessdue to a recommendation from someone they know.
        • TV,Radio or leaflets
      • Product
        • This affects the business and has to see if there is enough demand in the area
        • As the business grows more products will be made in order to appeal to a wider market.
      • Market Research
        • "Market Research enables a firm to find out about its customers, its market or its potential customers"
        • Primary Research
          • Research the firm creates itself
          • Advantages
            • Specific
          • Disadvantages
            • Expensive
        • Secondary
          • Disadvantages
            • Not as specific
          • Research that the business finds on the
          • Advantages
            • Cheap
            • Useful

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