This lesson includes a PowerPoint and a worksheet and covers: a) Calculation of: o gross profit o operating profit o profit for the year (net profit) b) Statement of comprehensive income (profit and loss account): o measuring profitability: calculation of gross profit margin, operating profit margin, and profit for the year (net profit) margin o ways to improve profitability c) Distinction between profit and cash Written by Sarah Hilton for Revisionstation

2.2.1 Sales forecasting a) Purpose of sales forecasts b) Factors affecting sales forecasts: o consumer trends o economic variables o actions of competitors c) Difficulties of sales forecasting 2.2.2 Sales, revenue and costs a) Calculation of sales volume and sales revenue b) Calculation of fixed and variable costs 2.2.3 Break-even a) Contribution: selling price – variable cost per unit b) Break-even point: o total fixed costs + total variable costs = total revenue c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis 2.2.4 Budgets a) Purpose of budgets b) Types of budget: o historical figures o zero based c) Variance analysis d) Difficulties of budgeting

This lesson includes a PowerPoint and a worksheet and covers: a) Purpose of budgets b) Types of budget: o historical figures o zero based c) Variance analysis d) Difficulties of budgeting Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Contribution: selling price – variable cost per unit b) Break-even point: o total fixed costs + total variable costs = total revenue c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Calculation of sales volume and sales revenue b) Calculation of fixed and variable costs Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Purpose of sales forecasts b) Factors affecting sales forecasts: o consumer trends o economic variables o actions of competitors c) Difficulties of sales forecasting Written by Sarah Hilton for Revisionstation

2.1.1 Internal finance a) Owner’s capital: personal savings b) Retained profit c) Sale of assets 2.1.2 External finance a) Sources of finance: o family and friends o banks o peer-to-peer funding o business angels o crowd funding o other businesses b) Methods of finance: o loans o share capital o venture capital o overdrafts o leasing o trade credit o grants 2.1.3 Liability a) Implications of limited and unlimited liability b) Finance appropriate for limited and unlimited liability businesses 2.1.4 Planning a) Relevance of a business plan in obtaining finance b) Interpretation of a simple cash-flow forecast and calculations based on changes in the cash-flow variables c) Use and limitations of a cash-flow forecast

This lesson includes a PowerPoint and a worksheet and covers: a) Relevance of a business plan in obtaining finance b) Interpretation of a simple cash-flow forecast and calculations based on changes in the cash-flow variables c) Use and limitations of a cash-flow forecast Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Implications of limited and unlimited liability b) Finance appropriate for limited and unlimited liability businesses Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Sources of finance: o family and friends o banks o peer-to-peer funding o business angels o crowd funding o other businesses b) Methods of finance: o loans o share capital o venture capital o overdrafts o leasing o trade credit o grants Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Owner’s capital: personal savings b) Retained profit c) Sale of assets Written by Sarah Hilton for Revisionstation

1.5.1 Role of an entrepreneur a) Creating and setting up a business b) Running and expanding/developing a business c) Innovation within a business (intrapreneurship) d) Barriers to entrepreneurship e) Anticipating risk and uncertainty in the business environment 1.5.2 Entrepreneurial motives and characteristics a) Characteristics and skills required b) Reasons why people set up businesses: o financial motives: profit maximisation and profit satisficing o non-financial motives: ethical stance, social entrepreneurship, independence and home working 1.5.3 Business objectives a) Survival b) Profit maximisation c) Other objectives: o sales maximisation o market share o cost efficiency o employee welfare o customer satisfaction o social objectives 1.5.4 Forms of business a) Sole trader, partnership and private limited company b) Franchising, social enterprise, lifestyle businesses, online businesses c) Growth to PLC and stock market flotation 1.5.5 Business choices a) Opportunity cost b) Choices and potential trade-offs 1.5.6 Moving from entrepreneur to leader a) The difficulties in developing from an entrepreneur to a leader

This lesson includes a PowerPoint and a worksheet and covers: a) The difficulties in developing from an entrepreneur to a leader Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Opportunity cost b) Choices and potential trade-offs Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Sole trader, partnership and private limited company b) Franchising, social enterprise, lifestyle businesses, online businesses c) Growth to PLC and stock market flotation Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Survival b) Profit maximisation c) Other objectives: o sales maximisation o market share o cost efficiency o employee welfare o customer satisfaction o social objectives Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Characteristics and skills required b) Reasons why people set up businesses: o financial motives: profit maximisation and profit satisficing o non-financial motives: ethical stance, social entrepreneurship, independence and home working Written by Sarah Hilton for Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Creating and setting up a business b) Running and expanding/developing a business c) Innovation within a business (intrapreneurship) d) Barriers to entrepreneurship e) Anticipating risk and uncertainty in the business environment Written by Sarah Hilton for Revisionstation

1.3.1 Product/service design a) Design mix: o function o aesthetics o cost b) Changes in the elements of the design mix to reflect social trends: o concern over resource depletion: designing for waste minimisation, re-use and recycling o ethical sourcing 1.3.2 Branding and promotion a) Types of promotion b) Types of branding c) The benefits of strong branding: o added value o ability to charge premium prices o reduced price elasticity of demand d) Ways to build a brand o unique selling points (USPs)/differentiation o advertising o sponsorship o the use of social media e) Changes in branding and promotion to reflect social trends: o viral marketing o social media o emotional branding 1.3.3 Pricing strategies a) Types of pricing strategy: o cost plus (calculating mark-up on unit cost) o price skimming o penetration o predatory o competitive o psychological b) Factors that determine the most appropriate pricing strategy for a particular situation: o number of USPs/amount of differentiation o price elasticity of demand o level of competition in the business environment o strength of brand o stage in the product life cycle o costs and the need to make a profit c) Changes in pricing to reflect social trends: o online sales o price comparison sites 1.3.4 Distribution a) Distribution channels b) Changes in distribution to reflect social trends: o online distribution o changing from product to service 1.3.5 Marketing strategy a) The product life cycle b) Extension strategies: o product o promotion c) Boston Matrix and the product portfolio d) Marketing strategies appropriate for different types of market: o mass markets o niche markets o business to business (B2B) and business to consumer (B2C) marketing e) Consumer behaviour – how businesses develop customer loyalty

1.4.1 Approaches to staffing a) Staff as an asset; staff as a cost b) Flexible workforce: o multi-skilling o part-time and temporary o flexible hours and home working o outsourcing c) Distinction between dismissal and redundancy d) Employer/employee relationships o individual approach o collective bargaining 1.4.2 Recruitment, selection and training a) Recruitment and selection process: o internal versus external recruitment b) Costs of recruitment, selection and training c) Types of training: o induction o on-the-job o off-the-job 1.4.3 Organisational design a) Structure: o hierarchy o chain of command o span of control o centralised and decentralised b) Types of structure: o tall o flat o matrix c) Impact of different organisational structures on business efficiency and motivation 1.4.4 Motivation in theory and practice a) The importance of employee motivation to a business b) Motivation theories: o Taylor (scientific management) o Mayo (human relations theory) o Maslow (hierarchy of needs) o Herzberg (two factor theory) c) Financial incentives to improve employee performance: o piecework o commission o bonus o profit share o performance-related pay d) Non-financial techniques to improve employee performance: o delegation o consultation o empowerment o team working o flexible working o job enrichment o job rotation o job enlargement 1.4.5 Leadership a) Leadership: o the distinction between management and leadership b) Types of leadership style: o autocratic o paternalistic o democratic o laissez-faire