ENTERPRISE THROUGH GCSE APPLIED BUSINESS

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ENTERPRISE THROUGH GCSE APPLIED BUSINESS

• External Influences

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External Influences
Industry
Competitors
Global Economy
BUSINESS
Customers
Pressure groups
Government
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• Competitors can be a threat if their prices are
  lower can help to boost trade for everyone
  prices and quality to compete with
• Industry may set guidelines, eg on pollution
  may promote products for all businesses
  voluntary codes to abide by
• Government legislation may affect business
  costs can help to raise business confidence
  laws to abide by
• Customers tastes may change can stay loyal to a
  particular brand
• Global Economy ups and downs in trade a slump
  in a big economy can affect everyone
• Pressure groups can be a threat if they gain
  publicity

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COMPETITION

• Use the Internet to find out what sort of online
  competition faces your Enterprise Project. Look
  at the main goods they produce and see how many
  other business you can find competing based in
  the UK or internationally.
• (15 minutes)

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INTERNET SITES

• Try these websites
• www.freepage.co.uk
• www.google.co.uk
• www.search.uk.co.uk
• www.ukdirectory.co.uk
• www.ukindex.co.uk
• www.yell.co.uk

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EXTERNAL INFLUENCES

• Now complete the gapped handout on External
  Influences.
• You have 15 minutes.

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HOW CAN BUSINESSES COMPETE?

• Price

• Non-price
• - quality of service
• - range of products
• - providing extra facilities
• - adding value
• - free gifts
• - Branding
• - Availability

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EXTERNAL INFLUENCES

• In your Enterprise Groups, brainstorm what
  external influences are likely to affect your
  project?

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Global economy

• The Business Cycle - Recession
• Consumers not buying as many goods
• Businesses either build up stocks or cut
  production
• Less employment, less overtime
• Peoples income falling - buy less, draw on
  savings
• Banks do not have so much money to lend so
  interest rates rise
• Prices remain stable or fall

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Global Economy

• The Business Cycle - Turning Points
• Businesses run out of stocks and have to produce
  new items - increase employment
• People earning more money, so spend more
• People believe situation will get better -
  businesses start to invest and consumers start to
  buy
• Banks will lower interest rates for people to
  borrow money
• Businesses offer special deals such as low or
  no interest credit

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Global Economy

• The Business Cycle - Boom
• Customers start to buy more goods and services
• Businesses need to produce more and employ more
  workers
• People earning more money and spending it
• Wages tend to increase
• Little unemployment, so businesses pay higher
  rates
• Prices pushed up and interest rates rise

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Business and the Environment

• Businesses can bring both benefits and
  disadvantages to the communities within which
  they operate
• - heavy transport, air, water, noise and visual
  pollution safety hazards, waste products

• Government has passed laws to make sure that
  businesses do not damage the environment or
  present a danger to communities

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ENVIRONMENTAL PROBLEMS

• Your teacher will give you a map of your local
  area.
• Draw a circle of one-mile radius from your school
  or home.
• How many environmental problems can you find
  within the circle?

• It could be problems of emissions, noise,
  unsightly buildings, traffic, litter, waste etc.
  Mark them as hotspots and state what you think
  should be done about them.
• (20 minutes)

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THE ENVIRONMENT

• Business activity can damage the environment.
  The government and the EU have introduced laws to
  reduce this damage.

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ACTIVITY

• Use information from the Internet -
  www.environment-agency.gov.uk/business
• Create a leaflet for your Enterprise project
  which states which regulations your business must
  comply with

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GCSE APPLIED BUSINESS

• External Influences

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EXTERNAL INFLUENCES

• External influences are those things which happen
  outside the company which are not under its
  control. These things have a direct effect on
  its business activities and future plans and
  include
• Business competitors
• Economic conditions
• Environmental constraints

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EXTERNAL INFLUENCES

• Below are 3 companies which are directly affected
  by one of the above external factors. Your task
  is to identify which external factor it is and to
  say how it affects the business by solving the
  anagrams.

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The Body Shop

• AAITYILAIVBL
• CERIP
• AQITYLU

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ESTATE AGENTS

• TTRSENIE TSRAE
• SIPREC
• XNGHECEA SAETR

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PAINT FACTORY

• SOEIN LTOPOLINU
• RAEWT NLUOPOTIL
• RAI UNILOPOTL
• STLFWAEU EUS FO SRCSREEUO