IGCSE Business Year 10 Lesson Slides PDF

IGCSE Business Year 10 Lesson slides Block 2: Week 1 commencing 30/09/2024 B2 W1 Lessons 1 & 2 Do now activity: Refer to Activity 3.3 (p.38) Complete questions 1 to 5. You have ten minutes, be prepared to share your answers. B2 W1 Lessons 1 & 2 Answers: 1 Form o Forward vertical...

IGCSE Business Year 10 Lesson slides Block 2: Week 1 commencing 30/09/2024 B2 W1 Lessons 1 & 2 Do now activity: Refer to Activity 3.3 (p.38) Complete questions 1 to 5. You have ten minutes, be prepared to share your answers. B2 W1 Lessons 1 & 2 Answers: 1 Form o Forward vertical Oil refining Petrol filling station Conglomerate Carpet retailer Restaurant Horizontal Large car manufacturer Small car manufacturer Backward vertical Supermarket Fruit canning Conglomerate Fast food outlet Supermarket Forward vertical Overseas holidays Travel agency 2 Has ready-made customers for its output. 3 Spreads risk. If the market for one product decreases, then the business has products in other markets that continue to do well. 4 Has a retail outlet that will market and sell its holidays. 5 Small manufacturer might benefit from some of the economies of scale that are beneficial to large manufacturer. Might give large manufacturer access to a profitable niche market.  Year 10 Chapter 1 B2 W1 Lessons 1 & 2 Chapter 2 Chapter 3 In chapter 3 you will learn about: Chapter 4 Chapter 5 Entrepreneurs and enterprise Chapter 10 Chapter 11 Business plans Chapter 12 Chapter 13 How to measure business size Chapter 14 Chapter 19 Why some businesses grow Chapter 20 Chapter 21 Why some businesses fail Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 B2 W1 Lessons 1 & 2 Learning Objectives: Success Criteria: Chapter 3 – Enterprise, business growth and size I know the main problems associated with business growth. Why some businesses grow and others remain small I can identify the main reasons why some businesses remain small. Problems linked to business growth Why some businesses remain small Coursebook ref: p.38 to 40 B2 W1 Lessons 1 & 2 Problems linked to business growth Although businesses can benefit from business growth, there may also be some problems, as follows: Internal growth (or organic growth) is usually slow. There is a risk that other businesses using external growth strategies grow much faster – these larger firms may in turn dominate the market and limit the opportunities for other businesses to expand. When two separate businesses are brought together, managers and staff in both businesses may fear loss of their jobs or status, especially where one of those businesses is much larger than the other. Furthermore, the newly merged firm maybe more complex to control and the manages may lack the skills and experience to manage this effectively, leading to poor decision making and inefficiency. If a business becomes too large, ‘diseconomies of scale’ may occur, increasing the business’s average costs and reducing its profit margins. Do you know what is meant by the term ‘diseconomies of scale’? Discuss. B2 W1 Lessons 1 & 2 Any two business that are brought together through integration are likely to have different types of business culture – different ways of doing things. What do you think this means? Discuss. They may have different objectives, pay and other conditions of work. Management styles may also be different, and all of these factors could result in conflict between employees. The integration of two firms will change the control of the business for the original owners, often leading to a loss of control. The way that these problems are managed will determine the success of the newly merged business. There needs to be: Careful planning. Sufficient resources available (such as finance and labour) to support the firm’s growth objectives. Effective communication from the managers to staff regarding the business’s plans for growth and how they will be affected, to minimise or remove possible conflict. B2 W1 Lessons 1 & 2 Why some businesses remain small Some businesses remain small because: 1) They don’t have growth as one of their objectives – the owner(s) would prefer the business to stay small. 2) They would like to grow, but there are reasons why they fail to grow. Refer to figure 3.7 – Factors affecting business growth Owner’s choice – most businesses start off small and there are several reasons why the owner would prefer not to pursue growth as a business objective: - The owner does not want the responsibility or workload of running a larger business. - The owner wants to maintain control over the day-to-day running of the business. - The owner wants to maintain a close relationship with customers and provide a more personal service. - The owner does not want to take on the risk of growth, such as taking on more borrowing to fund this – small business owners have ‘unlimited liability’ and are personally responsible for the debts of the business. B2 W1 Lessons 1 & 2 Market size – some businesses might not want to expand beyond the size of a local market (as opposed to a national market). For example, a hairdresser business that serves a local market may not want to offer its services beyond the local area because it knows that consumers in other neighbourhoods do not typically want to travel outside of their neighbourhood to have their hair cut. Access and availability of capital – businesses require finance to fund growth and this might not be available. Market domination – some industries are dominated by a small number of very large companies and it is difficult for small businesses to enter the market and compete. B2 W1 Lessons 1 & 2 End of lesson checklist Do I know the main problems associated with business growth? the main reasons why some businesses remain small? B2 W1 Lesson 3 Do now activity: Refer to the case study ‘Budget airline failures’ on p.41. Working in pairs read through the articles and discuss what you think were the main cause of their failure. You have ten minutes, be prepared to share your answers. B2 W1 Lesson 3 Answers: Article A: Prices it was charging were not high enough to cover costs. Unable to increase prices due to competition. Article B: Lost passengers because of safety concerns and eventually revenue was less than costs, so it was making losses and no longer able to pay its debts. Article C: Too much competition in a fairly small market so not possible for the company to compete profitably with other airlines. Article D: Not earning enough revenue to cover all of its costs. Cash shortage eventually resulted in the airline being unable to pay its debts. B2 W1 Lesson 3 Learning Objectives: Success Criteria: Chapter 3 – Enterprise, business growth and size I know the main causes of business failure and why new businesses fail. Why some businesses grow and others remain small Why some businesses fail Coursebook ref: p.40 to 43 B2 W1 Lesson 3 Why some businesses fail Businesses are not always successful – many new businesses fail withing their first one or two years and even some long-established businesses fail. Refer to figure 3.8 – Causes of business failure Reasons for business failure Poor planning Lack of finance Liquidity problems Poor choice of location Poor management skills Poor marketing Lack of objectives Competition Failure to invest in new technologies Economic influences B2 W1 Lesson 3 Poor planning and a lack of objectives – The lack of a business plan, covering aspects such as finance and marketing is often a cause of business failure. Clear objectives are essential for focus and direction. Liquidity problems – Cash flow problems arise when there is not enough cash coming into the business to cover its costs and other expenses. Poor choice of location – This is especially true for businesses such as retailers, restaurants and leisure facilities which needed to be located close to their market. Poor management – Many owners of businesses have great ideas for new products and services but lack the required management skills and experience to run their business effectively. Failure to invest in new technologies – Businesses that fail to invest in the latest technologies will often find it difficult to compete in terms of price, design and quality, leading to a loss of customers. B2 W1 Lesson 3 Poor marketing – Successful businesses identify and meet the needs of its customers effectively. Market research is essential for identifying the potential size of the market, the level of competition, and what customers want. Businesses that do not carry out market research are likely to fail. Lack of finance – New businesses often lack the finance they need to take full advantage of the opportunities available to them. Competition– All businesses face competition. Businesses that are unable to compete on price and quality are unlikely to survive in the long run. This problem can worsen because of ‘globalisation’. Can you explain why? Discuss. Economic influences – Unemployment, high interest rates and taxation may reduce the amount of money consumers have to spend on goods and services provided by businesses. In turn, this will reduce business’s earnings from sales and profits. Without having the finance available to survive an economic downturn, many businesses will fail. B2 W1 Lesson 3 End of lesson checklist Do I know the main causes of business failure and why new businesses fail? B2 W1 Lesson 4 Do now activity: Refer to Activity 3.4 on p.43. Working in pairs read through the case study and complete questions 1 to 3. You have ten minutes, be prepared to share your answers. B2 W1 Lesson 4 Answers: 1 People are losing their jobs so do not have money to buy luxury designer wedding dresses. Competitorsare producing cheaper dresses, which consumers can afford even with the lower income levels. 2 Misaki’s revenue has decreased below total costs. Operating costs are fixed so even though she is selling fewer dresses she still has to pay the same amount of rent and other overheads. 3 If economic recession continues and more people lose their jobs then this could further reduce Misaki’s revenue and increase her losses. Eventually the losses that Misaki makes will mean that she does not have enough cash to pay all of her costs and business debts and the business will fail/closedown. Misaki might decide to make cheaper non-designer dresses, and this could help to increase revenue; she might move to smaller premises to reduce costs. Any increase in revenue or decrease in costs could help Misaki’s business to survive until economic conditions improve. B2 W1 Lesson 4 Learning Objectives: Chapter 3 – Enterprise, business growth and size Exam-style practice questions Coursebook ref: p.43 to 44 B2 W1 Lesson 4 Exam-style practice questions (p.44) Questions 1 & 2 Read the case studies and answer questions 1a to 1e, and 2a to 2e. Complete for homework, deadline to be confirmed. B2 W1 Lesson 5 Do now activity: Refer to Figure 4.1 on p.45 – Main forms of business organisation in the private sector. Draw the diagram in your notebooks, you have five minutes.  Year 10 Chapter 1 B2 W1 Lesson 5 Chapter 2 Chapter 3 In chapter 4 you will learn about: Chapter 4 Chapter 5 Sole traders and partnerships Chapter 10 Chapter 11 Private and public limited companies Chapter 12 Chapter 13 Franchises and joint ventures Chapter 14 Chapter 19 The difference between unincorporated and incorporated businesses Chapter 20 Chapter 21 The role of public sector organisations Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 B2 W1 Lesson 5 Learning Objectives: Success Criteria: Chapter 4 – Types of business organisation I know the names of the main forms of business organisations in the private sector. Forms of business organisation I understand what is a sole trader business and the Sole traders advantages and disadvantages of being a sole trader. Coursebook ref: p.45 to 46 B2 W1 Lesson 5 Sole traders Can you think of any examples of sole trader business in your locality? What types of business are they? Discuss. Key term: Sole trader: a business that is owned and controlled by just one person who takes care of all the risks and receives all of the profits. People often choose to become sole traders for their own personal reasons, such as: They want to be their own boss. They can decide when and how many hours to work. They have a business that uses their own skills and interest. B2 W1 Lesson 5 Advantages and disadvantages of a sole trader Advantages Disadvantages Quick and easy to set up. Owner has unlimited liability for the debts of the business, putting their own personal wealth at risk. Owner makes all of the decisions and has Raising the funds required to expand the business complete control over the business. can be difficult. Only a small amount of start-up capital is usually It is sometimes difficult to compete with larger size needed. businesses in the same industry/market. Owner keeps all of the profits. Owners can sometimes lack the essential business skills and experience required. Owners often need to work very long hours to earn an adequate living from the business. If a sole trader retires or dies, the business no longer exists. B2 W1 Lesson 5 End of lesson checklist Do I know the names of the main forms of business organisations in the private sector? what is a sole trader business and the advantages and disadvantages of being a sole trader?