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Teacher Assessment 5 - Discuss Exam Technique

Discuss the impact of an entrepreneur choosing to startup a business by buying a franchise (6)

Important: Can you remember what you can discuss when asked for an “Impact”?

An example of a benefit followed by a drawback

LOTS of you leaving lines in between your paragraphs which is GREAT!!

Keep doing it please!!!

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Discuss the impact of an entrepreneur choosing to startup a business by buying a franchise (6)

Teacher Assessment 5 - Discuss Exam Technique

LOTS of you leaving lines in between your paragraphs which is GREAT!!

Keep doing it please!!!

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Discuss the impact of an entrepreneur choosing to startup a business by buying a franchise (6)

Teacher Assessment 5 - Discuss Exam Technique

Important: Because is asked for “Impacts” you can even give two benefits or two drawbacks

LOTS of you leaving lines in between your paragraphs which is GREAT!!

Keep doing it please!!!

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Stick the sheet with the feedback in your books under your Discuss response and make sure you have a purple pen…

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Title - Teacher Assessment 5

Use the feedback given on the sheet to rewrite your answer in purple pen OR follow the suggestion in the notes if you got 6/6

Discuss the impact of an entrepreneur choosing to startup a business by buying a franchise

Points you can use:

  • The business already have a strong brand name so there is lower risk

(in 2015 97% of franchises were profitable)

  • The franchisee gets advice, support and training from franchisor

  • Franchisee benefits from marketing campaigns done by franchisor

  • The franchisee has to pay substantial initial fees a share of their profits

  • The franchisee can not make their own decisions

  • Reputation may be damaged if other franchisees don’t maintain high standards

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22 out of 22 gets an Exceptional student so go through each definition and match the keyword…take your time

Do Now: Keyworks so far 2!!

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THEME ONE

THEME TWO

Investigating Small Business

Building a Business

1.1 Enterprise & Entrepreneurship

1.2 Spotting a business Opportunity

1.3 Putting a business idea into practice

1.4 Making the business effective

1.5 Understanding External Influences

2.1 Growing the business

2.2 Making marketing decisions

2.3 Making operational decisions

2.4 Making financial decisions

2.5 Making human resource decisions

YOU ARE NOW HERE!!

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THEME 1 – INVESTIGATING SMALL BUSINESS

1.1 Enterprise and entrepreneurship

Dynamic nature of business

Risk and reward

Role of Business Enterprise

1.2 Spotting a business opportunity

Customer needs

Market research

Market segmentation

The Competitive Environment

1.3 Putting a Business Idea Into Practice

Business aims and objectives

Business revenues, costs and profits

Cash and cash-flow

Sources of business finance

1.4 Making the Business Effective

The options for start-up and small businesses

Business location

The Marketing Mix

Business Plans

Business Studies Road Map

1.5 Understanding External Influences on a Business

Business stakeholders

Technology and business

Legislation and Business

The economy and business

External influences

You are here

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WHAT IS REVENUE?

Key term check...

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Higher or Lower?

Revenue of

£278 Billion

Revenue of

£198 Billion

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Higher or Lower?

Revenue of

£112 Billion

Revenue of

£198 Billion

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Higher or Lower?

Revenue of

£204 Billion

Revenue of

£112 Billion

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Higher or Lower?

Revenue of

£132 Billion

Revenue of

£204 Billion

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Higher or Lower?

£24 Billion

From a Revenue of £204 Billion they made a Profit of...

£12 Billion

From a Revenue of £132 Billion they made a Profit of...

Why might Google be able to make TWICE as much Profit even though their Revenue is much less than VW’s?

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Destination Question:

What is a businesses “Revenue”, what can a business do to impact its “Revenue” and how is “Revenue” calculated?

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What is Revenue?

In your pairs - choose a company and make a list of as many potential sources of Revenue as you can...

Title - Revenue

“The income that a business receives from sales”

Definition

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What is Revenue?

In your pairs - choose a company and make a list of as many potential sources of Revenue as you can...

Title - Revenue

“The income that a business receives from sales”

Definition

  1. What could affect Revenues for your chosen companies?
  2. What might they be able to do to increase their total Revenue?

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Title - Revenue

  • Increase or decrease prices - Why both?

  • Increase advertising (promotion) so customers are aware of the product and so more are bought

  • Sell a wider range of products to meet all customer needs

  • Sell in a more convenient place, e.g. the internet

How can a business increase its “Revenue”?

What are the downsides of making these decisions?

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Now we know what “Revenue” is…

let’s see how business calculate it

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Here come the formulas...

  1. Write the formula down before your work out the calculation (I will show you some shorthand formulas that you may prefer to learn)

  • Whenever you WORK it out...WRITE it out
  • ALWAYS use a calculator
  • Show your answers in the units that you are working with (e.g. £ and p)

Tips:

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Formula for sales revenue...

Title - Business Revenues, Costs and Profits

Revenue = Sales Price x Quantity Sold

Revenue = Sales Price x Quantity Sold

Revenue = £3.50 x 1,500 = £5,250

Revenue = Sales Price x Quantity Sold

Revenue = £0.60 x 35,000 = £21,000

Simpsons Chicken

sells 1,500 products in March, at a price of £3.50 each.

What is the their revenue in March?

Spire Sweets

sold 35,000 units in 2018 for 60 pence each.

What was the their revenue in 2018?

£5,250

£21,000

R = SP x Q

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Title - Business Revenues, Costs and Profits

Revenue = Sales Price x Quantity Sold

Revenue = 0.25p x 150 = £37.50

Revenue = £1.35p x 200 = £270.00

Revenue = £0.25 x 150 = £37.50

£307.50

£307.50 x 6 days = £1,845

A bakery sells 150 bread rolls and 200 loaves of bread every day. The price of the bread rolls is 25p per roll and the price of bread is £1.35 per loaf.

  1. How much revenue is made from the sale of bread rolls per day
  2. Calculate the revenue from loaves of bread and then work out the total revenue per day?
  3. What is the total revenue per week if the baker works a 6 day week?

£37.50

£307.50

£1,845

R = SP x Q

Is this £1,845 profit for the bakery?

Thumbs up if you think YES; Thumbs down if you think NO

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Title - Challenge One:

Star student if you complete this..

...let me know if you do.

Extension on GC

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Write down the shorthand formula for Revenue on your whiteboard

Plenary