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

2. 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

3. 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)

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

5. Exploring business purposes
The aims of businesses

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. The Purpose of Business

13. 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

14. 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

15. 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?

16. 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.

17. 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.