Topic
Understanding customer needs
Market
Mapping
Analysing
Paper 1 content: Y10
Spotting a business opportunity
What you need to learn Textbook ref
Unit 2 Customer needs are central to starting a business how to collect and interpret primary and secondary market research in the context of starting a new business; the difference between qualitative and quantitative research data
Unit 2 the value of market knowledge through direct customer contact how to analyse customer buying habits and preferences
Unit 2
Unit 4 how businesses can identify market segments how businesses can map their market to set out the key features of the market they are planning to operate in and identify a market gap
Unit 4
Unit 4 that initial planning to Unit 6
Confident about
Need to learn/revise

competitor strengths and weaknesses
Understanding the need to add value
What options exist for starting up a business?
Topic
What is enterprise?
Thinking creatively set up a business will require an analysis of the competitors in the market how to analyse competitor strengths and weaknesses and the comparing a business offering with that of its rivals enables an entrepreneur to spot further opportunities the meaning of the term ‘added value’ and explain its importance in business survival and success the main sources of added value
(convenience and speed, branding, quality, design, unique selling point) the principles of franchising as it applies to small business startups the advantages and disadvantages of using a franchise as a means of starting a new business and assess franchising against other business start-up options how to identify a suitable start-up location
Unit 6
Unit 7
Unit 7
Unit 8
Unit 8
Unit 8
Showing Enterprise
What you need to learn Textbook ref
Unit 1 that enterprise involves taking risks, showing initiative, and a willingness to undertake new ventures the difference between providing goods or a service why thinking creatively is important in
Unit 9
Unit 10
Confident about
Need to learn/revise

What questions do entrepreneurs ask?
Invention and
Innovation – generating new business ideas developing both competitive advantage and a new business the role of lateral thinking and deliberate creativity in developing new business ideas the important questions to ask when coming up with new business ideas such as Why? Why not?
What if? the concept of looking beyond the obvious, asking ‘What if?’ and judging the value of outcomes. how new business ideas come about
Taking a calculated risk
Other important enterprise understand the difference between innovation and invention and how innovation means bringing a new idea to the market explain steps an entrepreneur can take to protect their ideas through patents and copyright understand the principle of taking a calculated risk understand that weighing up the risks and the rewards of a new business idea is an important part of the process of judging outcome and viability of a start-up to see mistakes as part of the process of learning to succeed explain the importance of planning, thinking ahead, seeing
Unit 11
Unit 1 and 9
Unit 9
Units 9 -
12
Unit 12
Unit 12
Unit 9 and 14
Unit 9 and 14
Unit 9 and 14
Unit 15

Topic skills
Objectives when starting up
The qualities shown by entrepreneurs
Estimating revenues, costs and profits
Forecasting cash flows opportunities, having drive and determination making connections, using mind maps to collect thoughts and see opportunities
Unit 15
Putting a business idea into practice
What you need to learn Textbook ref
Confident about
Unit 23 financial objectives: the range of motives for wanting to start a business including profit or income, financial security and wealth non-financial objectives: personal satisfaction, challenge, to help others
(starting a charity)
Unit 23
Unit 15 determination and initiative the willingness to take risks and make decisions the ability to plan and persuade showing leadership the role of luck in business success/failure how businesses forecast sales volumes and selling prices to estimate revenue how to determine fixed and variable costs
Unit 17
Unit 18 understand the difference between price and cost and the concept of profit explain how profit is the difference between the total revenue generated over a period and the total costs
Unit 19
Unit 19 the impact of profits and losses on a business and its owners understand the role and importance of cash to the operation of a business and to its longterm success
Unit 19
Unit 20 how to estimate monthly Unit 21
Need to learn/revise

Obtaining
Start up
Finance
Topic
Customer
Focus
The marketing mix cash inflows and outflows to determine net and cumulative cash flows how cash flows are affected by stock levels and credit terms explain how cash flow problems can lead to business failure
(insolvency) appreciate the role and importance of a business plan in minimising the risk involved explain the main sources of finance for a small business start-up long-term sources, such as loans, personal savings, profit, venture capital and share capital in the context of a private limited company short-term sources such as overdrafts and trade credit
Unit 21
Unit 21
Unit 21
Unit 22
Unit 22
Unit 22
Making the start up effective
What you need to learn Textbook ref
Unit 25
Confident about understand that a business must anticipate, identify and meet customer needs if it is to be successful
Unit 25 understand that a business will have to consider price, product, promotion and place as important elements to meet the business opportunity understand that different businesses will place different emphasis on the elements of the mix and that the mix can be amended to meet changing consumer needs
Unit 25
Need to learn/revise

The importance of limited liability
Start-up legal and tax issues
Effective ontime delivery and customer satisfaction
Recruiting, training and motivating staff explain the principle of limited and unlimited liability and understand the implications of this in making a choice on the status of the business the differences between sole trader and private limited company status understand the need to establish a unique trading and business name understand the need to keep careful records, the implications of VAT, income tax, National
Insurance and
Corporation Tax for the business explain how effective customer service includes fulfilling customer orders accurately and on-time and dealing with complaints recognise the importance of customer satisfaction in the success of a business the importance of repeat purchase for a business the basic processes involved in recruiting staff to work in a small business the importance of skill versus attitude when recruiting and training staff understand the importance of treating staff fairly and a simple understanding of the impact of relevant legislation, e.g. relating to age, sex, race and
Unit 26
Unit 26
Unit 27
Unit 27
Unit 28
Unit 28
Unit 3
Unit 29
Unit 29, unit 30
Unit 31

Topic
Market demand and supply
Impact of changes in interest rates on small businesses
Impact of changes in exchange rates disability discrimination
Understanding the economic context
What you need to learn Textbook ref
Confident about the prices of commodity markets are determined by the balance between supply and demand the difference between commodity markets and normal markets
Unit 33, unit 34
Unit 33, unit 34 the effect on small firms of price changes in raw materials and energy costs how changing interest rates affect small firms which tend to rely on overdrafts and loans for finance
Unit 33, unit 34
Unit 35
Need to learn/revise the impact of changing interest rates on consumer spending explain what exchange rates are
Unit 35
Unit 36
How do business cycles affect small businesses?
What effect do business how changes in the £/$ or £/€ affect small firms that trade abroad or face competition from abroad the impact of changing exchange rates on the price of imported and exported goods how to calculate exchange rates on product prices understand that economic activity tends to rise and fall and that changes in the level of economic activity can have serious effects on small businesses that stakeholders are those groups or
Unit 36
Unit 36
Unit 36
Unit 37, unit 38
Unit 39

decisions have on stakeholders? individuals with an interest in a business recognise that business decisions have different effects on different stakeholders and the problems a business may face in meeting the demands of all stakeholders
Unit 40

Grade boundaries on paper 1:
A* = 38-40
D = 24-28
A = 36-37
E = 19-23
B = 32-35
F = 14-18
To get a grade C you will need 75%!
Advice to candidates:
C = 29-31
G = 9-13
 Multiple-choice format does not mean that the exam is
‘easier’. The questions are designed to require skills, including application and analysis
 Key terms – a number of marks on this paper are gained through knowledge of key terms
 Practice makes perfect
 Timing –incorrect responses are often selected by candidates as a result of questions not being read thoroughly enough
 Use the 45 minutes available to think carefully about each question, identify distracters, and finally identify the correct answer. Check all of your answers before the end of the exam. Candidates need to be aware that questions are designed to include some strong distracters
 Candidates should note that when examination papers are being produced they are designed to test the full range of ability. It should therefore be expected that candidates may find some questions more/less challenging than others.

GCSE Business Studies: Key terms: Paper 1
Key Term
Primary Research
Secondary Research
Qualititative Research
Quantitative Research
Repeat Purchase
Effective Demand
Market Map
Market Research
Innovative
Unethical
Market Segments
Definition
First hand research, gathering information direct from consumers, e.g. through questionnaires; also known as field research
Research that has already been carried out or published by another firm; also known as desk research
In-depth research to find out consumers views and opinions
Research which involves numerical data which allows graphs to be drawn and data to be analysed
Customer loyalty shown through continued purchasing of a product
When the customer has the ability to pay for a good or service
A grid that shows two different aspects of the products or brands within a market; allows a firm to identify a gap in the market
Finding out customer opinions and actions through interviews, questionnaires etc
A new, perhaps original, product or process
An action or decision that is morally wrong
Sections of a market in which consumers have different characteristics, e.g. age, gender or income
Market Share
Adding Value
One brand’s sales as a percentage of the total sales in a market
Changing a product in some way to increase its value to the customer, and allowing the firm to charge a higher price
USP (Unique Selling Point) A feature of a product or service that is not shared by any other product or service
Entrepreneur Person who takes the risk of starting their own business
Royalty Payment An annual payment to a franchisor by a franchisee for the use of the business name; usually a percentage of the profits
Copyright
Patent
Innovation
Invention
Profit
Revenue
A means of protecting the work of a person, e.g. text, music etc
A means of protecting a product, allowing sole use; the product has to be registered
Putting a new idea into practice
A new product, idea or process
Total revenue minus total costs
The total value of sales; equals the number of customers x the average amount they spend, or price x number of items sold
Learnt

Sales Forecast
Fixed Costs
Variable Costs
Total Costs
Business Plan
Cash
Cash Flow
Cash Flow Forecast
Insolvency
Liquidation
Dividends
Share Capital
An estimate of the future level of sales
Costs that do not change with the amount produced, e.g. rent
Costs that do change with the amount produced, e.g. raw materials
Fixed costs added to variable costs; the total costs of production
A document that sets out a new business idea and how it will succeed
The money that a firm holds in notes and coins in its tills together with the money in its bank account
The flow of money in and out of a business
An estimate of future cash flows into and out of a business
A situation in which a business cannot repay its short term debts
Selling off a firm’s assets in order to raise cash to pay off the firm’s debts
Annual payments to shareholders from the company’s profits
The finance raised from the sale of shares in a limited company
Venture Capitalist
Limited Liability
An individual that invests in risky businesses, in exchange for a percentage of the business
A situation in which the responsibility for paying the debts of a business is limited to amount invested in the business
Unlimited Liability A situation in which the responsibility for paying the debts of a business is unlimited; owner may be forced to sell personal assets to pay the debts
Customer Focus Keeping your staff thinking about customers’ wants and needs
Target Audience (Market) The part of the market your product is aimed at
(e.g. women aged 15-24)
Sole Trader A business owned by one person; that person
Private Limited Company
Corporation Tax
Income Tax
National Insurance
Customer Satisfaction
Repeat Purchase makes all of the decisions and has unlimited liability
A business owned by shareholders who enjoy limited liability; the shares cannot be sold on the Stock Exchange
A tax on the company’s profits
A tax on peoples’ incomes
A tax that is paid by both employers and employees; it is a contribution towards welfare benefits; it’s a percentage of the person’s income
The degree to which buyers approve of the service they have received
Buyers returning regularly to the same supplier

Supply Chain (Chain of
Supply)
Reference
Discrimination
Curriculum Vitae
Induction Training
The links in the chain from the start to then end of the supply process; e.g. from wheat farmer to baker of bread to supermarket
A letter to support a job application from someone the job applicant has chosen
Choosing one type of person in preference to another, perhaps on the grounds of race, age or gender
A person’s life history, used to support a job application
Initial training for new staff, to make them feel comfortable in their new job
Off-the-job Training
On-the-job Training
Labour Turnover
Absenteeism
Consumer Spending
Exports
Recession
Commodity
Market
Monopoly
Training that takes place away from the workplace (e.g. at a college or training centre)
Training that takes place while working at the job (e.g. till training at a supermarket)
The percentage of the workforce that leaves each year and has to be replaced
The percentage of the workforce that is absent on average each day
The total spent by all shoppers throughout the country
Goods produced in one country but sold overseas in another
A downturn in sales and output throughout the country, often leading to unemployment
A product in which all supplies are the same, such as sugar.
Any place where buyers and sellers come together, to agree a price and to exchange
A situation in which sales in a market are dominated by a single supplier
Wholesaler
Economic Growth
The middleman between producers and retailers
The rate of increase in the total output of a country
European Union The group of 27 countries in Europe that trade freely with one another, and have agreed social and economic policies
Foreign Exchange Markets The places where currencies are bought and sold
Bank of England The state-owned bank that lends to the high street banks such as Barclays, and sets interest rates in the UK
Bank Rate
Chancellor of the
Exchequer
Exchange Rate
SPICED
WIDEC
Boom
The interest rate set by the Bank of England; this forms the base from which high street banks set their interest rates
The government minister responsible for decisions about the economy; e.g. about taxation and government spending set out in an annual budget
The price of one currency in terms of another
Strong pound, imports cheap, exports dear
Weak pound, imports dear, exports cheap
When an economy is growing faster than it

Forecast
Stakeholders usually does; will not last, unemployment is low
A prediction of future economic events
Groups of people who have an interest in and are affected by a business, e.g. workers, customers; NOT rivals!
GCSE Business Studies: Content
Topic
Marketing and market research
Product trial and repeat purchase
Product life cycle
Boston Box matrix
Branding and differentiation
Paper 3 Content: Y11
Marketing
What you need to learn
Textbook ref Confident about the meaning of the term ‘marketing’
Unit 41 how to collect and interpret quantitative and qualitative research data to help decide on issues such as the appropriate marketing mix the concept of breaking down
‘sales’ into product trial and repeat purchase and how to maximise repeat purchase through customer loyalty the four phases of the life cycle, extension strategies, cash flow and the life cycle product portfolio analysis through the Boston box the importance of brands as an aid to product trial and
Unit 41
Unit 42
Unit 43
Unit 44
Unit 45
Need to revise

repeat purchase and the need to differentiate a product/service from others, given the level of competition
Building a successful marketing mix the importance of managing a brand through the key variables that make up the mix:
Product, Price,
Promotion and
Place
Meeting customer needs
Topic What you need to learn
Design and research development design as a key approach to product differentiation, be able to appreciate the design mix and show the need for scientific research to provide the basis for development
Managing stock to interpret bar gate stock graphs to see how stock control should work in theory and understand the need for the use of
Just In Time (JIT)
Managing
Quality stock control the advantages and drawbacks of different stock control methods quality control versus a culture of quality assurance
Cost-effective keeping
Unit 46
Textbook ref Confident about
Unit 48
Unit 49
Unit 49
Unit 50
Unit 51
Need to revise

operations and competitiveness
Effective customer service productivity up and costs down to ensure low costs and allow for competitive prices providing customers with the service level they want, when they want it, and to see the link with repeat purchase levels the disadvantages of poor customer service
Meeting consumer protection laws
Effective Financial Management
Topic What you need to learn
How to improve cash flow a brief introduction to the purpose of
Trade Descriptions and Sale of Goods legislation and the effects of this legislation on business key aspects of financial management such as how to establish more favourable credit terms with customers and suppliers and the practice of de stocking how to analyse the difference between increasing cash inflows and reducing cash outflows
How to improve profit
Break-even charts and cutting costs and increasing revenues, and the impact of price changes on profit how to draw and interpret break-
Unit 52
Unit 52
Unit 53
Textbook ref Confident about
Unit 54
Unit 54
Unit 55
Unit 56
Need to revise

break-even analysis even charts; calculate the break-even point and margin of safety how changes to price and costs affect the breakeven point the value to a business of using break-even analysis how to finance a business from both
Financing growth
Effective People Management
Topic
Organisational
What you need to learn the importance of structure internal sources
(profit, asset sales) and external sources (share capital, debt), including stock market flotation
Motivation theory divisional structure, levels of hierarchy, chains of command, and centralised versus decentralised systems the significance of motivation in the workplace, with specific focus on
Maslow’s Hierarchy of Needs and its potential in organisations the idea that motivation comes from within
Communication the impact of insufficient or excessive communication on efficiency, the impact on staff and
Unit 56
Unit 56
Unit 57
Textbook ref Confident about
Unit 58
Unit 59
Unit 59
Unit 60
Need to revise

their motivation and the barriers to effective communication
Remuneration the impact on staff of various payment strategies, including time, piece rate, commission; fulltime salary versus freelance or temporary work; fringe benefits the impact on business of different payment systems
The Wider World
Topic
Ethics in business
What you need to learn the meaning of the term ‘ethics’ in business and the complexity of moral issues affecting organisations possible trade-off between ethics and profit the importance of the potential effects of pressure group activity
Environmental issues how businesses affect the environment the importance of short term environmental effects (impact on traffic congestion; air, noise and water pollution; recycling) and long-term environmental effects (global warming and resource depletion)
Unit 61
Unit 61
Textbook ref Confident about
Unit 62
Unit 62
Unit 62
Unit 63
Unit 63
Need to revise

Economic issues affecting international trade
The impact of government and the EU the extremes of income distribution internationally the effect of import protection and export subsidy on businesses the impact of regulation and taxation and the benefits and drawbacks of minimum wage, maternity/paternity rights and health and safety regulations on businesses
Unit 64
Unit 64
Unit 65
Key term
Marketing
Definition
The management process of identify, anticipating and satisfying consumer demand
Primary Research First hand research, direct from the consumer, for a specific purpose; also known as field research
Secondary Research Information from second hand sources; using data that has already been gathered for a different purpose; also known as desk research
Qualitative Research In-depth research using focus groups and in-depth interviews in order to find out about consumers opinions and views
Quantitative
Research
Socio-economic group (ABC1C2DE)
Research that yields numerical data that can be analysed and graphed
Social class of customers; A/B = professionals, E = unemployed, those on benefits and pensioners
Product Trial
Repeat Purchase
Brand Loyalty
The consumer purchases the product for the first time
The consumer regularly purchases the product or brand
The consumer displays a long term
Learnt

Product Life Cycle model
Extension Strategy
Boston Box Matrix
‘Stars’
‘Problem Children’
‘Cash Cows’
‘Dogs’
Brand
USP (unique selling point)
Differentiation
Logo
Marketing Mix
Customer
Expectations
Design Mix
Patent
Buffer Stock
Stocks
Business Culture
Quality control commitment to buy the brand
A business model which shows how the sales of a product decline with time, and identifies stages in the life on the product
A marketing action by a business to prolong the sales of a product and prevent it going into decline
A business model which groups the products of a business and shows which ones have the best prospects for the future
Products that are in high growth markets but with a high market share
Products that are in high growth markets but with a low market share
Products that are in slow growing markets but with a high market share
Products that are in a slow growing market with a low market share
A product with a unique character, for instance in design or image; name given to a family of products
A key feature of a product that is not shared by any of its rivals
The process of making a product seem different/distinct from its rivals
A picture or symbol that represents a business
The 4P’s (price, place, product and promotion); having the right product in the right place at the right price, and having promoted it so that consumers known about it and have been persuaded to buy
What consumers expect they are going to receive for the service they have paid for
The combination of economic manufacture
(cost), function and aesthetics (appearance) in each product
A way of protecting a product, production method etc so that it cannot be copied for
20 years
The minimum stock level held at all times to avoid running out
Items held by a business for use or sale, e.g. components for manufacturing, sellable products for a retailer
The way we do things around here; the accepted attitudes and practices of staff at a workplace
Putting measures in place to check that the customer receives an acceptable level of quality

Warranty
Productivity
Automated
Durability
Monopoly
JIT – just in time
Profit
Revenue
Break-even point
Break-even chart
Margin of Safety
External sources of finance
Internal sources of finance
Organisation chart
Centralised
Organisation
Decentralised
Organisation
Motivation
Communication
Barrier to communication
Internal communication
External
The guarantee by the producer that it will repair any faults in a product for a specific period of time
The efficiency of the worker, measured in output per worker per hour
Processes that are fully carried out by machines rather than workers
How strong a product is and therefore how well and long it lasts
When there is only one supplier, i.e. there is no competition
A system designed to reduce the amount of cash tied up in stock – firms buy raw materials only when they are needed, and only produce goods to order, reducing storage costs
The difference between revenue and costs
The total amount earned from sale of products; calculated by multiplying the number of items sold by the price
The level of sales at which total costs = total revenue; the firm makes neither a profit nor a loss; at output below this point the firm makes a loss; at output above this point the firm makes a loss
A graph which shows total costs and total revenue, and is used to find the break-even level of sales
The positive difference between the firm’s actual sales and its break-even level of sales
Sources of finance from outside the business, e.g. loans, venture capital
Sources of finance from within the business, from the business’s own resources, e.g. sale of assets
A diagram that shows the internal structure of a business
A business in which most decisions are made at head office
A business in which most decisions are made at a local level
The desire to work hard, to achieve the business’s goals
The passing of information from one person to another
Something that prevents the flow of information
Communication that takes place between workers within the business
Communication between the business and

Communication
Remuneration
Wage
Salary people outside of the business, e.g. customers, suppliers
The reward of employees, e.g. pay
A method of paying employees for the work they do, usually by the hour, on a weekly basis
A method of paying employees for their work, usually calculated on an annual basis, paid monthly
Commission
Piece rate
A method of paying employees for their work based on the number of items sold, or the value of items sold
A method of paying employees for their work based on the number of items produced
Time rate
Ethics
Ethical
Legislation
A method of paying employees for their work based on the number of hours worked
A set of moral principles
Doing what is morally right, not just what is legal
Laws passed by parliament, e.g. the Sale of
Goods Act
Social Responsibility Acting in ways that show that the business cares about all members of society, e.g. through recycling
Social enterprise A not-for-profit business that trades in order to benefit a social cause, e.g. Tradecraft
Pressure group
Quota
Subsidy
A group with a common interest or goal who seek through their actions to change the behaviour of businesses
Fairtrade Movement A group that supports the suppliers of goods, especially farmers in developing countries by making sure that they are paid a fair price (above the market price) for their products
Scarcity Limited resources but unlimited wants and needs
A physical limit placed on imports
A payment by the government to a business in order to reduce its costs so that is can compete with imports, or export more cheaply
Tariff
Interest rate
Tax
A tax placed on imported goods and services
The charge imposed by banks for borrowing money (loan) and the reward to savers
A financial charge set by the government, used to collect revenue for the government in order to pay for government spending