Edexcel BTEC First Diploma Unit 17 – Abbey Grange High School

Unit 17 – Assignment 1 For this unit you will be setting up your own business as a group. This will hopefully be a very enjoyable unit and one that you will get a lot out of.

As usual there are Pass, Merit and Distinction criteria. This assignment covers most of the Pass and Merit criteria.

HOW MUCH TIME DO I HAVE?

We will be working on this unit during the Autumn and Spring terms. This means you will have approximately 30 hours of lessons, plus homework time, to complete this assignment. Your work will be made up of a number of tasks, which your teacher will set you. You will be given deadlines for each task.

1 Miss Williams Edexcel BTEC First Diploma Unit 17 – Abbey Grange High School

TASKS

TASK 1 – The Initial Business Ideas (P1) In this task you will be introducing your group’s business idea, explaining in detail the reasons why it was chosen. 1. Explain the advantages and disadvantages of running a business outside school. 2. Explain the advantages and disadvantages of running a business in school. 3. Explain which option we chose to do, and the reasons we chose to do that. 4. Summarise the group’s initial idea. 5. Explain why it was chosen. You need to cover: -likely demand -practicality -likely profit 6. Will your business have a Unique Selling Point? Explain this.

TASK 2 – Identifying the Target Market (P2) Produce a table on Market Segmentation as shown below: The first row is completed for you as an example.

Segmented by: Explanation Example Age Different products and services will be Saga holidays – older people aimed at people of different ages iPods – younger people Gender Ethnicity Geography Tastes/Interests Income

Using the table above, explain what is meant by a ‘Target Market’

TASK 3 – Identifying the Target Market (P2/M1)

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For this task you are going to be split up into groups to conduct some practical research for our business.

The research that needs conducting is as follows:  A questionnaire  A more in-depth ‘focus group’  Internet research – to include school/Ofsted info, teenage pocket money, Valentines info etc.

Following the research, we will review the information as a group.

You will need to write up how and why we researched the market. If you explain the methods thoroughly, you can achieve the Merit here.

TASK 4 – Skills needed to run the Business (P3/M2) 1. Describe the skills that are needed to run your business venture successfully. Start by thinking about all of the jobs that need to be done in the business, then explain the skills needed e.g. counting up the takings each day needs numeracy skills.

2. Identify the areas which will need some development and practice before we start the business (e.g. practise giving change)

3. Explain the areas for which you would need more personal development if we were to conduct this business long-term. e.g. Confidence – shy about selling on stall. Solution = enrol on a ‘Confidence Building’ course, or get a part-time job. You could talk here about numeracy, literacy, ICT skills, organisational skills, team skills, display skills etc.

4. If you include analysis in part 3, you can achieve the Merit here. E.g. a confidence building course would be good, but it will cost me in terms of time and money to do, and it may be better getting a part time job, as it would give me more real experience.

TASK 5 – Legal and Financial Aspects (P4/M3)

3 Miss Williams Edexcel BTEC First Diploma Unit 17 – Abbey Grange High School

For this task you need to write about all of the legal considerations surrounding your business.

1. Include 1 paragraph on each of the following:  Laws/rules – e.g. products you’re allowed to sell in school, times you’re be allowed to sell them  Health and Safety – e.g. space, supervision  Fire Regulations – e.g. access  Licensing – e.g. if you were showing films  Liabilities – e.g. tax/VAT/insurance  Consumer Law

2. Explain which ones are the main considerations for your chosen business.

3. For the Merit grade, you need to ‘assess the implications’ of the legal aspects. You need to re-examine the above list, and decide which ones are not that important to you, and which ones could affect the start –up of this venture.

TASK 6 – Legal and Financial Aspects (P4/M3) For this task you will need to consider all of the financial aspects of your chosen business venture. You’ll need to examine all of your costs and revenues, and work out your profit.

1. Make a list of all the costs your firm will face. 2. Describe the sources of finance – where your money to set up will come from. 3. Explain the revenue – What prices will you charge, and what should your total sales revenue be?

Following teaching on the following: 4. Explain how many products you need to sell to Break Even 5. Construct a Profit and Loss account to show the potential profit for your business venture.

6. For the Merit grade, you need to ‘assess the implications’ of these

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figures. E.g:

 Are the costs acceptable?  Are the revenues high enough?  Do you foresee any problems with your sources of finance?  Is your break-even point easily achievable?  Will you make a good profit from this venture?

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