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Edexcel GCSE Dynamic Learning is an online subscription solution that supports teachers and students with high- quality content and unique tools. Dynamic Learning incorporates elements that all work together to give you the ultimate classroom and homework resource. Teaching and Learning titles include interactive resources, lesson-planning tools, self-marking tests and assessment. Teachers can: ● Use the Lesson Builder to plan and deliver outstanding lessons ● Share lessons and resources with students and colleagues ● Track student progress with Tests and Assessments Teachers can also combine their own trusted resources alongside those from Edexcel GCSE (9–1) Business which has a whole host of informative and interactive resources including: ● Starter activities, task worksheets, self-marking Test Yourself quizzes and teacher notes for each topic ● Ready-made key content Powerpoints that can be edited by teachers ● Quantitative skills worksheets and a complete set of practice exam papers ● Answers for the quantitative skills worksheets and all of the questions in the textbook Edexcel GCSE (9–1) Business is available as a Whiteboard eTextbook which is an online interactive version of the printed textbook that enables teachers to: ● Display interactive pages to their class ● Add notes and highlight areas ● Add double-page spreads into lesson plans Additionally the Student eTextbook of Edexcel GCSE (9–1) Business is a downloadable version of the printed textbook that teachers can assign to students so they can: ● Download and view on any device or browser ● Add, edit and synchronise notes across two devices ● Access their personal copy on the move To fi nd out more and sign up for free trials visit: www.hoddereducation.co.uk/dynamiclearning Edexcel GCSE (9–1) BUSINESS SECOND EDITION Ian Marcousé i 9781471899355.indb 1 07/03/17 4:35 PM In order to ensure that this resource offers high-quality accurate, the official specification and associated assessment support for the associated Pearson qualification, it has guidance materials are the only authoritative source of been through a review process by the awarding body. information and should always be referred to for definitive This process confirms that this resource fully covers guidance. the teaching and learning content of the specification or part of a specification at which it is aimed. It also Pearson examiners have not contributed to any sections in confirms that it demonstrates an appropriate balance this resource relevant to examination papers for which they between the development of subject skills, knowledge and have responsibility. understanding, in addition to preparation for assessment. Examiners will not use endorsed resources as a source of Endorsement does not cover any guidance on assessment material for any assessment set by Pearson. activities or processes (e.g. practice questions or advice Endorsement of a resource does not mean that the resource on how to answer assessment questions), included in the is required to achieve this Pearson qualification, nor does it resource nor does it prescribe any particular approach to the mean that it is the only suitable material available to support teaching or delivery of a related course. the qualification, and any resource lists produced by the While the publishers have made every attempt to ensure awarding body shall include this and other appropriate that advice on the qualification and its assessment is resources. The Publishers would like to thank the following for permission to reproduce copyright material. Photo credits can be found on page 290. Acknowledgements Pg. 112, Top tips for writing a business plan. © The Prince’s Trust. The original version can be found at https://www.princes-trust. org.uk/help-for-young-people/tools-resources/business-tools/business-plans; pg. 119, extract from The Guardian, 12 March 2015, © Guardian News & Media Ltd 2016; pg. 145, extract from The Guardian, 3 August 2016, © Guardian News & Media Ltd 2016; pg. 190, extract from The Guardian, 26 January 2016, © Guardian News & Media Ltd 2016; pg. 258, extract from The Guardian, 11 August, 2016, © Guardian News & Media Ltd 2016. Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked, the Publishers will be pleased to make the necessary arrangements at the first opportunity. Although every effort has been made to ensure that website addresses are correct at time of going to press, Hodder Education cannot be held responsible for the content of any website mentioned in this book. It is sometimes possible to find a relocated web page by typing in the address of the home page for a website in the URL window of your browser. Hachette UK’s policy is to use papers that are natural, renewable and recyclable products and made from wood grown in sustainable forests. The logging and manufacturing processes are expected to conform to the environmental regulations of the country of origin. Orders: please contact Bookpoint Ltd, 130 Milton Park, Abingdon, Oxon OX14 4SE. Telephone: +44 (0)1235 827720. Fax: +44 (0)1235 400454. Email [email protected] Lines are open from 9 a.m. to 5 p.m., Monday to Saturday, with a 24-hour message answering service. You can also order through our website: www.hoddereducation.co.uk ISBN: 978 1 4718 9935 5 © Ian Marcousé 2017 First edition published in 2009 This edition published in 2017 by Hodder Education, An Hachette UK Company Carmelite House 50 Victoria Embankment London EC4Y 0DZ www.hoddereducation.co.uk Impression number 10 9 8 7 6 5 4 3 2 1 Year 2021 2020 2019 2018 2017 All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited. Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo © VLADGRIN/iStock/Getty Images/ Illustrations by Peter Lubach and Integra Software Services Services, Ltd. Typeset in India by Integra Software Services, Ltd. Printed in Italy by Printer Trento A catalogue record for this title is available from the British Library. 9781471899355.indb 2 07/03/17 4:35 PM Contents Introduction vi Theme 1: Investigating small business Topic 1.1 Enterprise and entrepreneurship 2 1 The dynamic nature of business 2 2 Why new business ideas come about 7 3 How new business ideas come about 11 4 Risk and reward 15 5 The role of business enterprise 21 6 Adding value 25 7 The role of entrepreneurship 29 Exam-style questions on Topic 1.1 34 Topic 1.2 Spotting a business opportunity 36 8 Customer needs 36 9 Market research 41 10 Market segmentation 46 11 Market mapping 50 12 The competitive environment 53 Exam-style questions on Topic 1.2 57 Topic 1.3 Putting a business idea into practice 59 13 Business aims and objectives 59 14 Business revenue, costs and profi t 64 15 Break-even 70 16 The importance of cash 76 17 Cash fl ow forecasts 80 18 Sources of small business fi nance 85 Exam-style questions on Topic 1.3 90 Topic 1.4 Making the business effective 92 19 Ownership and liability 92 20 Franchising 96 21 Business location 100 iii 9781471899355.indb 3 07/03/17 4:35 PM 22 Marketing mix 106 23 Business plans 110 Exam-style questions on Topic 1.4 114 Topic 1.5 Understanding external infl uences on business 116 24 Stakeholders 116 25 Technology and business 121 26 Legislation and business 126 27 Introduction to the economy 131 28 The economy and business 135 29 External infl uences on business 142 Exam-style questions on Topic 1.5 146 Theme 2: Building a business Topic 2.1 Growing the business 148 30 Methods of growth 148 31 Finance for growth 153 32 Changes in aims and objectives 157 33 Business and globalisation 162 34 Ethics and business 168 35 Environment and business 172 Exam-style questions on Topic 2.1 176 Topic 2.2 Making marketing decisions 177 36 Product 177 37 Price 181 38 Promotion 185 39 Place 191 40 Marketing mix and business decisions 195 Exam-style questions on Topic 2.2 199 Topic 2.3 Making operational decisions 201 41 Business operations 201 42 Technology, productivity and production 207 43 Managing stock 211 44 Procurement: working with suppliers 215 45 Managing quality 219 46 The sales process 223 Exam-style questions on Topic 2.3 228 iv 9781471899355.indb 4 07/03/17 4:35 PM Topic 2.4 Making fi nancial decisions 230 47 Business calculations 230 48 Understanding business performance 235 Exam-style questions on Topic 2.4 242 Topic 2.5 Making human resource decisions 244 49 Organisational structures 244 50 The importance of effective communication 250 51 Different ways of working 255 52 Effective recruitment 260 53 Effective training and development 265 54 Motivation 270 Exam-style questions on Topic 2.5 276 Glossary 278 Index 285 v 9781471899355.indb 5 07/03/17 4:35 PM Introduction Acknowledgements Many thanks to all the people involved along the way in making this GCSE course a success – and therefore helping the book. Key fi gures include the team of entrepreneurs who helped me devise the original course, plus the modern driving force of Isla Billett and Colin Leith. For the book itself, many thanks to Michelle Billington and Louise Stubbs, plus the Hodder input from Beth Cleall and Melissa Richards. Personally, the most important input came from my 3-year-old grandson James, whose question: ‘Why do shops die?’ deserves a 12-mark exam question of its own.
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