Pearson BTEC Level 1/Level 2 First Award in Business Course Outline

The Pearson BTEC Level 1/Level 2 First Award in Business has been developed in the business sector to: ● encourage personal development of knowledge and skills relevant to the business world through practical participation in a range of vocational business activities ● give learners a wider understanding and appreciation of the broad range of business specialisms through selection of optional specialist units ● encourage learners to develop their people, communication, planning and team working skills by having the opportunity to select from optional units available in the qualification structure This Course is equivalent to 1 GCSE

Units you will study Unit 2 – Is an on screen Exam worth 50 marks The Exam duration is 50 mins. (Please not you MUST pass the test to complete any award)

Grades Grades Equivalents (GCSE) Level 1 E Level 2 Pass C Level 2 Merit B Level 2 Distinction A Level 2 Distinction * A*

Exploring business purposes The aims of businesses

The Aims of Businesses These are the long term visions or goals of a business Aims are set to provide a focus for the organisation Aims will always link to the main purpose of the organisation

Relationships with other The Aims of Businesses Relationships with other businesses Profit Maximisation Service provision Aims of business Survival Increase market share Growth Break-even

The Aims of Business Profit maximisation Survival Involves making as much profit as possible Survival If trading is difficult, for some reason, then making good profits may be unrealistic. The business may aim to survive until times improve

The Aims of Business Growth Break-even A business may aim for growth, so that it sells more goods or services. This may mean expanding by opening other branches or buying out a competitor Break-even One method of surviving is to break-even over a certain period. This is covering the costs of running the business without making a profit

The Aims of Business Increase Market Share Service provision This means taking business away from their competitors Service provision Offering a new service or improving current services to attract more customers Relationships with other businesses Aim to improve or develop these relationships, may involve joint initiatives to offer more goods and service to more people

Activity GP Hotel Children’s charity Retail store Police force Suggest two appropriate aims for each of the following organisations: GP Hotel Children’s charity Retail store Police force

The Purpose of Business

The Purpose of Business All businesses exist for a purpose Produce or supply goods Offer a service to their customers or do both. Toyota produces cars, Walkers produces crisps Next, HMV sell goods made by other organisations Solicitors provide legal services Banks provide financial services

What price to charge? At a profit Free goods and services Seller will set a price which enables a profit to be made Free goods and services Provided when considered to be essential to everyone Health care, refuse collection, road maintenance, social services (by local council) Emergency services: police, ambulance and fire services Voluntary organisations

What price to charge? At cost Below cost Any questions? Charge enough to recover the amount spent without making a profit (for example: school production) Below cost The price is less than cost of making or supplying the item (for example: NHS prescriptions, school bus pass, extra refuse bins) Any questions?

Question On Monday you bought a new mobile phone; Write down which goods/services listed below were provided at a profit, free, at cost, or below cost. On Monday you bought a new mobile phone; On Tuesday you renewed your passport; On Wednesday a relation took a driving test, On Thursday your mum went to an IT evening class; On Friday you sprained your ankle and had it bandaged in A&E at the local hospital; On Saturday you bought a new T shirt; On Sunday your family went swimming at the local leisure centre.

Create a table to identify businesses which operate in the UK. Task What you need to do: Create a table to identify businesses which operate in the UK. For each business identify its purpose.