HPS Business GCSE Knowledge Organiser - Writing Structure and as a Result Points - PDF

HPS Business GCSE – Topic 1.1 – 1.2 A Part A B Part B Someone who organises resources, makes business decisions and is Someone who organises resource...

HPS Business GCSE – Topic 1.1 – 1.2 A Part A B Part B Someone who organises resources, makes business decisions and is Someone who organises resources, makes business decisions and is 1 Entrepreneur willing to take risks to start up a business 1 USP willing to take risks to start up a business 2 Good Physical / tangible item like a product 2 Gap in the market Physical / tangible item like a product Intangible – it is an action performed by other people to assist the Intangible – it is an action performed by other people to assist the 3 Service 3 Demographics customer customer 4 Dynamic market A market that experiences continuous change 5 Obsolete Products that are no longer in use or out of date 6 Market Can be a place, product or group of people 7 Market Research The process of gathering data on what customers want When a business targets particular groups of people it wants to 8 Target Market focus on 9 Primary research Research you gather yourself (desk research) 10 Secondary research Research gathered by a third party (field research) Information that is measured in numbers (produces large quantity of 11 Quantitative data results) Information that is expressed in words through feeling or opinions 12 Qualitative data (produces quality answers) Occurs when a market is divided into different groups of needs 13 Market segmentation and wants i.e. age, income. Dividing the market to analyse competition and spot gaps in the 14 Market mapping market Proportion of total sales within the market that is controlled by the 15 Market share business  HPS Business GCSE – Topic 1.3 – 1.4 A Part A Part B Long-term sources of 1 Aim A general goal of a business. 1 Sources of finance being borrowed for a longer period of time finance 2 Objective A specific target that is set for a business to achieve its goal. The cost of borrowing money or the reward for saving money, expressed as 2 Interest rates a percentage. Individuals and organisations that are affected by, and affect, the 3 Stakeholder 3 Dividends The financial rewards paid out to shareholders each year. activities of a business. A person or an organisation that owns part of a company. Each 4 Shareholder 4 Trade credit Arranging to delay or reschedule payments at a later date shareholder owns a 'share' of the business. A business that has its own legal identity. It can own items, owe 5 Company 5 Overdrafts These let firms take out more money out of its bank than it has paid into it money, sue and be sued. The total income that a firm receives. It is also referred to as 6 Revenue 6 Loans Source of finance borrowed from bank and repaid with added interest 'turnover'. Items of value owned by the business, either in cash form or which 7 Asset 7 Personal savings A business owners personal money invested into the business can be turned to cash 8 Costs Costs are the expenses (expenditure) paid out to run the business 8 Share capital When individuals buy shares in a business making them a shareholder 9 Profit A business makes a profit if they earn more than they spend 9 Venture capital Source of finance raised through investors Someone who is willing to take risks involved in starting a new A portion of the companies profits that are kept in the business rather than 10 Entrepreneur 10 Retained profit business. paying it out to shareholder 11 Consumer Someone who uses goods and services produced by businesses. When a large number of people contribute money towards funding a 11 Crowd funding business idea Revenue and costs are equal, so the business is not making loss or The owners of the business can only loose the amount of money they put 12 Break Even 12 Limited liability profit into the business. 13 Cash Flow Money flowing in and out of the business Owner can lose money they invested and their personal assets. One legal 13 Unlimited liability. entity. 14 Forecasting Predicting future outcomes 14 Franchise When a franchisor sells the “rights” to its products to a franchisee. Short-term sources of 15 Sources of finance paid back to lender a short period of time 15 Franchisee Buys a franchise and usually pays a fee or percentage of turnover. finance  HPS Business GCSE Knowledge Organiser – Topic 1.4 – 2.1 A Part A Part B 1 E-commerce Buying and selling products on the internet 1 Income tax Tax charges at different rates depending on the individuals income 2 E-tailer A business that sells products online 2 Disposable income Money left over after expenses to be spent on personal leisure 3 Insolvency When a business does not have enough cash to pay its debts 3 Inflation An increase in the price of goods and services over time The four elements that must be considered for good marketing; 4 Marketing mix price, product, place and promotion 4 Interest rate The cost of borrowing money or the reward given for saving money The different stages a product goes through over time from 5 Product life cycle introduction to decline 5 Base rate The interest rate that the central bank sets Individuals and organisations that are affected by, and affect, the 6 Stakeholder activities of a business. 6 Demand How much of a product people are willing to buy at a given price A business that is its own legal entity separate from the 7 Exchange rate The price of one currency expressed in terms of another currency 7 Incorporated shareholder A group that try to influence the business to act more ethically or 8 Export Goods and services produced in one country and are sold to another 8 Pressure groups in a more environmentally friendly way Whereby the availability of the product has been maximised in the 9 Import Goods and services bought in one country that was produced in another 9 Saturated market marketplace Internal (organic) The growth of a business achieved internally by expanding sales and 10 Output The volume or level of production 10 growth increasing output A pricing strategy in which a firm charges a very low price for a External (inorganic) 11 Price penetration 11 When a business grows by merging with or taking over another firm product when it is new then increased prices later on growth A pricing strategy in which a firm charges a high price for a product 12 Price skimming 12 Mergers When two or more firms join together to form a new, larger firm to begin with then reduces prices later on National minimum wage The lowest hourly rate permitted by the government that an When an existing business expands by buying more than half the shares 13 13 Takeovers (NMW) employer can pay to its employees aged 22 and under in another firm National living wage The lowest hourly rate permitted by the government that an A reduction in average unit cost that comes from producing on a large 14 14 Economies of scale (NLW) employer can pay to its employees aged 23 and over scale Compulsory contributions made to the government to fund public When business growth can lead to an increase in average unit cost due 15 Tax 15 Diseconomies of scale services to excessive work and poor communication  HPS Business GCSE Knowledge Organiser – Topic 2.2 – 2.5 A Part A B Part B 1 Buffer stock The limited amount of stock a business wants to store in stock 1 Unemployment The availability of workers of age that are unable to find a job Procurement means to obtain. A business needs to ensure they 2 Tariffs Additional tax imposed on imports or exports 2 Procurement are selecting the right supplier and getting the right supplies at the right time. 3 Quotas A limit to the quantity that can be imported or exported Logistics refers to the process of managing how resources, goods 3 Logistics and services move from one part of the supply chain to another A group of countries that come together to trade freely without 4 Trade bloc tariffs or quotas Check quality of the products at the beginning and end (inputs and 4 Quality control outputs) - the aim is to ensure that goods and services meet the 5 Multinationals A company that operates in more than one country specification which will ensure customer needs are met. 5 Quality assurance Checks the quality regularly throughout the production 6 Design mix Part of product – made of function, aesthetic and cost Average rate of return on 6 Formula used to measure whether an investment is profitable investment 7 Product life cycle The stages a product goes through from introduction to decline Gross and net profit Measured the profit before all other expenses are deducted or 7 margin after all expenses are deducted as a percentage A strategy used by a business to extend the life of a product to 8 Extension strategy prevent decline 8 Net profit Revenue – all costs a business incurs 9 Price penetration Starting prices low then increasing overtime All decisions are made by a few members at the top of the 9 Centralised organisations structure 10 Price skimming Starting prices high then reducing overtime Decentralised 10 Decisions are share out between lower layers of management organisations Producing one off individual and unique items based on 11 Job production Long chain of command and short span of control – many layers of customer specification 11 Hierarchical structure management 12 Batch production Producing items in small quantities not continuously Fewer layers of management – short chain of command and wide 12 Flat structure span of control Continuous production – without stoppage leads to mass 13 Flow production 13 Jargon Technical language used and understood by one department manufacturing Just in time stock Ordering what is needed, when it is needed in the amount that Insufficient Not enough communication – leads to duplication of tasks and 14 14 control is needed communication frustration 15 Lead time The time taken (days) between order date and delivery date 15 Excessive communication Too much communication would lead to inefficiently  HPS Business GCSE Knowledge Organiser – Topic 2.2 – 2.5 C Part C 1 Full time work 35-40 hours 2 Part time work Less than full working week usually between 10-30 hours Employer does not have to offer workers any fixed contract – they 3 Zero hour contracts work when asked – suitable for fluctuations in demand No end date or termination of contract they stay unless they 4 Permanent contract decide to resign or they are made redundant Fixed period of work i.e. 6 months then contract must be renewed 5 Temporary contract or terminated Self-employed person is recruited by a company to work on a 6 Freelance contract specific project Recruiting current/existing employees into new roles that are 7 Internal recruitment advertised within the company 8 External recruitment Involves recruiting and filling a role from outside the business Curriculum vitae – summary of a person's personal details, skills 9 CV qualifications and interests. Training done on the job- they learn how to do a job by shadowing 10 Informal training or learning from someone else in the company Involves training outside of the business i.e. training session which 11 Formal training could be more expensive Business sets employees' targets and then review their 12 Performance reviews performance to make sure they are developing as they should Giving an employee a different role to do to eliminate repetitive 13 Job rotation work 14 Job enrichment Giving workers more responsibility at work more challenges 15 Autonomy Give workers freedom to make own decisions - motivates As a result points: Increase footfall – attract passing trade Competitive advantage – USP – raise prices – stand out from competition Consumer income/disposable income – more consumer spending – greater sales Demand and supply – how much customers and willing to but the product at a given price and the availability of it Profit and loss – cash outflows and cash inflows Break even – only if costs are equal to revenue – minimum amount they must sell Margin of safety – if they drop below their margin of safety they will be making a loss Aims and objectives of a business – financial and non financial - can change not fixed improve brand image and reputation – attracts customers – can charge higher prices Stand out from competition / have USP Charge higher prices Higher profit margin if the cost of production will fall – economies of scale Attract or deter customers Competition - market share