Business Studies
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  • Edexcel GCSE
    • Theme 1: Investigating small business >
      • Topic 1.1 Enterprise and entrepreneurship >
        • 1.1.1 The dynamic nature of business
        • 1.1.2 Risk and reward
        • 1.1.3 The role of business enterprise
      • Topic 1.2 Spotting a business opportunity >
        • 1.2.1 Customer needs
        • 1.2.2 Market research
        • 1.2.3 Market segmentation
        • 1.2.4 The competitive environment
      • Topic 1.3 Putting a business idea into practice >
        • 1.3.1 Business aims and objectives
        • 1.3.2 Business revenues, costs and profits
        • 1.3.3 Cash and cash-flow
        • 1.3.4 Sources of business finance
      • Topic 1.4 Making the business effective >
        • 1.4.1 The options for start-up and small businesses
        • 1.4.2 Business location
        • 1.4.3 The marketing mix
        • 1.4.4 Business plans
      • Topic 1.5 Understanding external influences on business >
        • 1.5.1 Business stakeholders
        • 1.5.2 Technology and business
        • 1.5.3 Legislation and business
        • 1.5.4 The economy and business
        • 1.5.5 External influences
    • Theme 2: Growing the business >
      • Topic 2.1 Growing the business >
        • 2.1.1 Business growth
        • 2.1.2 Changes in business aims and objectives
        • 2.1.3 Business and globalisation
        • 2.1.4 Ethics, the environment and business
      • Topic 2.2 Making marketing decisions >
        • 2.2.1 Product
        • 2.2.2 Price
        • 2.2.3 Promotion
        • 2.2.4 Place
        • 2.2.5 Using the marketing mix to make business decisions
      • Topic 2.3 Making operational decisions >
        • 2.3.1 Business operations
        • 2.3.2 Working with suppliers
        • 2.3.3 Managing quality
        • 2.3.4 The sales process
      • Topic 2.4 Making financial decisions >
        • 2.4.1 Business calculations
        • 2.4.2 Understanding business performance
      • Topic 2.5 Making human resource decisions >
        • 2.5.1 Organisational structures
        • 2.5.2 Effective recruitment
        • 2.5.3 Effective training and development
        • 2.5.4 Motivation
    • Revision >
      • Theme 1 >
        • Flash cards
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      • Theme 2 >
        • Flash Cards
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    • Class list
  • AS Business Studies
    • Theme 1 >
      • 1.4 Managing people >
        • 1.4.1 Approaches to staffing
        • 1.4.2 Recruitment, selection and training
        • 1.4.3 Organisational design
        • 1.4.4 Motivation in theory and practice
        • 1.4.5 Leadership
      • 1.5 Entrepreneurs and leaders
    • Theme 2 >
      • 2.4 Resource management >
        • 2.4.1 Production, productivity and efficiency
        • 2.4.2 Capacity utilisation
        • 2.4.3 Stock control
        • 2.4.4 Quality management
      • 2.5 External Influences >
        • 2.5.1 Economic influences
        • 2.5.2 Legislation
        • 2.5.3 The competitive environment
  • A level Business Studies
    • Theme 3: Decisions and Strategy >
      • 3.1 Business objectives and strategy >
        • 3.1.1 - Objectives & Strategy
        • 3.1.2 - Theories of Corporate Stratergy
        • 3.1.3 - SWOT analysis
        • 3.1.4 - Impact of external influences
      • 3.2 Business growth >
        • 3.2.1 - Growth
        • 3.2.2 - Mergers & Takeovers
        • 3.2.3 - Organic Growth
        • 3.2.4 - Reasons for staying small
      • 3.3 Decision-making techniques >
        • 3.3.1 - Sales forecasting
        • 3.3.2 - Investment appraisal
        • 3.3.3 - Decision trees
        • 3.3.4 - Critical path analysis
      • 3.4 Influences on business decisions >
        • 3.4.1 Corporate influences
        • 3.4.2 Corporate culture
        • 3.4.3 Shareholders versus
        • 3.4.4 Business ethics
      • 3.5 Assessing competitiveness >
        • 3.5.1 Interpretation of financial statements
        • 3.5.2 Ratio analysis
        • 3.5.3 Human resources
      • 3.6 Managing change >
        • 3.6.1 Causes and effects
        • 3.6.2 Managing Change
        • 3.6.3 Scenario planning
    • Theme 4: Global business >
      • 4.1 Globalisation >
        • 4.1.1 Growing economies
        • 4.1.2 International trade and business growth
        • 4.1.3 Factors contributing to increased globalisation
        • 4.1.4 Protectionism
        • 4.1.5 Trading blocs
      • 4.2 Global markets and business expansion >
        • 4.2.1 Conditions that prompt trade
        • 4.2.2 Assessment of a country as a market
        • 4.2.3 Assessment of a country as a production location
        • 4.2.4 Reasons for global mergers or joint ventures
        • 4.2.5 Global competitiveness
      • 4.3 Global marketing >
        • 4.3.1 Marketing
        • 4.3.2 Niche markets
        • 4.3.3 Cultural/social factors
      • 4.4 Global industries and companies >
        • 4.4.1 The impact of MNCs
        • 4.4.2 Ethics
        • 4.4.3 Controlling MNCs
    • Pre-release >
      • 2017 Fitness Industry
    • Class list >
      • 13R
      • 13 Q
  • Btec KS5
    • Level 3 >
      • Unit 3: Personal & Business Finance >
        • A: Personal Finance >
          • A1 Functions & role of money
          • A2 Different ways to pay
          • A3 Current accounts
          • A4 Managing personal finance
        • B: Explore the personal finance sector >
          • B1 Features of financial institutions
          • B2 Communicating with customers
          • B3 Consumer protection for personal finance
          • B4 Information guidance & advice
        • C: Understanding the purpose of accounting >
          • C1 Purpose of accounting
          • C2 Types of income
          • C3 Types of expendicture
        • D: Sources of finance >
          • D1 Internal
          • D2 External
        • E: Break-even & Cash flow >
          • E1 Cash flow forecasts
          • E2: Costs & Break-even
        • F: Statement of accounts >
          • F1 Statement of comprehensive income
          • F2 Statement of financial position
          • F3 Measuring porfitability
          • F4 Measuring liquidity
          • F5 Measuring efficiency
          • F6 Limitations of ratios
      • Unit 6: Principals of management >
        • A Functions of management >
          • A1 Definitions management & Leadership
          • A2 Functions of management & leadership
          • A3 Business Culture
        • B Management & Leadership: Styles & Skills >
          • B1 & B2 Management & Leaderships styles
        • C Managing Human Resources >
          • C1 Human Resources
          • C2 Human Resource Planning
        • D Factors influencing management, motivation and performance of the workforce >
          • D1 Motivation in the workplace
          • D2 Techniques to meet skills requirements
          • D3 Training and development
          • D4 Performance appraisal
        • E Impact of change >
          • E1 Managing change
        • F Quality management >
          • F1 Quality standards
          • F2 Developing a quality culture
          • F3 The techniques and tools of quality management
          • F4 The importance and benefits of quality management
      • Unit 7: Business Decission Making >
        • A: Business plans >
          • A1 Business ideas
          • A2 Purpose and structure of the business
        • B: Decision making in business >
          • B1 Sources for data collection
          • B2 The use of business models to aid decision making
          • B3 Techniques to analyse data effectively for business purposes
          • B4 Appropriate formats for decision making in a business context
          • B5 Software-generated information for decision making in an organisation
        • C: Use of research to justify the marketing >
          • C1 Types of research
          • C2 Competitor analysis
          • C3 Trends
          • C4 Marketing plan
        • D: Efficient operational management of the business >
          • D1 Legislation
          • D2 Quality issues
        • E: Understand the importance of managing resources >
          • E1 Human resources
          • E2 Physical resources
          • E3 Financial resources
        • F: Creation and interpretation of financial forecasts >
          • F1 Creation and analysis of a sales forecast
          • F2 Create and interpret a cash flow forecast
          • F3 Creation and interpretation of a break-even chart
          • F4 Creation and interpretation of an income statement
          • F5 Creation and interpretation of a statement of financial position
        • G: Viability of a business >
          • G1 Ratio analysis
          • G2 Threats and ‘what if’ scenarios
          • G3 Contingency plan
        • H: Demonstrate business skills/IT skills >
          • H1 Business skills
          • H2 Use IT skills to create appropriate documentation
  • KS4 Btec Enterprise
    • Component 1: Exploring Enterprises >
      • Learning Aim A >
        • P1: Purpose, Activities & Aims
        • P2: Entrepreneurial Characteristic & Skills
      • Learning Aim B
      • Learning Aim C >
        • P4 Internal Factors
        • P5 External Factors
    • Component 2: Planning for & pitching an Enterprise Activity >
      • Learning aim A >
        • P1: Potential Ideas
        • P2: A plan
      • Learning aim B
      • Learning aim C
    • Component 3
  • Tutor
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    • Healthy body & mind
    • Maths problems >
      • Cheryl's Birthday
    • Geopolitical
    • Future labour markets
    • Growth Mind Set
    • Environment
    • Revision skills

1.5.4 The economy and business

The impact of the economic climate on businesses:
​
● unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, changes in exchange rates.

Year 10 January isolation 1st week guidance


GDP, average income & Unemployment

Watch the theory video on what the key terms mean and how the terms are interconnected.
GCSE GDP theory
​
Explain the impact of an increase in GDP/average income/employment for a business? (Section A - 3/6 marks)
GDP section A analysis
Explain how the data in the two graphs are correlated? 
Picture
https://www.bbc.co.uk/news/business-39743129
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https://www.bbc.co.uk/news/business-35819535

Section B/C: GDP in context

What happened to GDP in the UK in 2008/09?
What does this mean and why is it important to know?
Where would you prefer to sell given the data, China or the UK?
Assess how a recession could impact a second hand car dealer? (6 marks)
recession guaranteed to be deeper as car sales dive by 45%. UK US Germany and Japan hit
Assess how China's GDP growth has impacted Lego? (6 marks)
LEGO plans to build on its success in China

Inflation

What is meant by inflation?
GCSE Inflation theory
Explain how inflation can impact a business? (Section A - 6 marks)
Inflation section A

​Section B/C: GDP in context

Assess the impact of inflation on small chocolate sellers? (6 marks) 
Chocolate prices on the rise​
Assess the impact of Toblerone's decision to change the shape of its bar? (6 marks)
Toblerone changed the shape of its chocolate bars so now everyone gets less chocolate - TomoNews

Isolation assessment support:

Extension activity:

​Watch the video to support with the assessment question. The assessment can be found on go4schools and should be emailed to your teacher.
Research the impact that Covid & Brexit could have on the future of the economy and how this will impact different industries in 2021 and beyond.
Unemployment predicted to surge to 2.6m by mid-2021
​
Debenhams set to close - 12,000 jobs at risk across UK
​

Interest Rates

What is meant by interest rates? What are the two things you can do at a bank which are influenced by interest rates?
How will changes in the interest rate influence a business possible directly on indirectly?
Picture
http://news.bbc.co.uk/1/hi/business/7817453.stm
What does the interest rate rise tell us about the health of the economy? - BBC Newsnight

Government Tax

There are 3 main types of tax in the UK - do you know what they are?
How will this influence businesses?
Picture
Calculate the income tax the average person would pay?
What income tax would you need to pay for your dream job?
Picture
https://www.gov.uk/income-tax-rates
What is the highest tax rate in the world?
Tax rates 

VAT

What is it?
Why is it important to a business?
A Cake or a Biscuit? - The Lengthy and Expensive Saga of the Jaffa Cake
Industry chiefs fear hundreds of fryers up and down the country may have had their chips if a hard-fought battle to scrap the current 20% level of tax is unsuccessful.
There have already been two failed attempts in British courts to win a zero VAT rating for fish suppers. Now accountancy firm KPMG, which is helping chippie owners, is set to take the fight to the European courts.

Their pledge comes almost two years after Chancellor George Osborne ditched plans for 20% VAT on freshly baked pies and sausage rolls.

Andrew Crook, secretary of the National Federation of Fish Friers (NFFF), said: “We have a protective claim going through KPMG, which is purely for takeaways.
“They are trying to get VAT reduced to the lowest level. “The claim has been in court twice and has been refused so far, so it is going to be put to Europe.”

The federation argues it should be exempt, in line with supermarkets, which do not pay VAT on some of the hot food they sell. At present, VAT makes up 99p of every £4.95 fish supper sold at Mr Crook’s two family-run chippies in Lancashire.
He and other owners claim they could slash the cost of their food if they didn’t have to pay VAT. He said: “Every quarter it is a struggle. The Government claim that we are collecting it and adding it on to our prices. But the reality is that we are absorbing it because customers will only pay so much for their fish and chips.

​
https://www.sundaypost.com/news/uk-news/tax-fight-for-battered-chip-shop-owners/
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Picture
https://www.ifs.org.uk/publications/9207

Business Rates

Businesses getting screwed over with business rates (02Aug17)
Business rates are charged on most non-domestic properties, like:
  • shops
  • offices
  • pubs
  • warehouses
  • factories
  • holiday rental homes or guest houses

Your local council will send you a business rates bill in February or March each year. This is for the following tax year.

Example
Barbara has a business in England. The rateable value of her business is £10,000, so she uses the 2019 to 2020 small business multiplier (49.1p) to estimate her business rates as follows:
​
£10,000 (rateable value) x £0.491p (multiplier) = £4,910 (basic business rates)

​https://www.gov.uk/introduction-to-business-rates

Counter balance

How can a business benefit from the Government collecting tax or reduce the effects of tax? 
How the government spends your money | BBC Newsbeat
​
How does Nando's avoid paying tax in the UK? | Guardian Animations

Exchange Rates

What is an exchange rate?
Does anyone know what has recently happened to the pound?
Key method to help with analysis = SPICED
FreeCurrencyRates.com
Activity: Exchange rates sheet
UK: Pound drops to 31-year low against dollar on Brexit fears   ​
TRAILER: Dispatches: Supermarkets: Brexit & Your Shrinking Shop
​

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