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BTEC Tech Award Level 1/ 2 student book Enterprise

BTEC Tech Award Level 1/ 2 student book Enterprise

Cathy Richards | Helen Coupland-Smith | Andrew Redfern

(2018)

Additional Information

Book Details

Abstract

BTEC Tech Award Level 1/ 2 student book Enterprise

Table of Contents

Section Title Page Action Price
Front Cover Front Cover
Contents iii
About this book v
How to use this book vi
Component 1: Exploring Enterprises 2
Examining the characteristics of enterprises 4
What is an enterprise? 4
Customer service 6
Service and loyalty 6
Creativity and innovation 7
Why enterprises fail 7
Types of small and medium enterprises 8
Micro enterprises 8
Small enterprises 9
Medium enterprises 9
Characteristics of small and medium enterprises 10
Running SMEs 10
Employees 10
Type of ownership 11
Location or operation 11
The purpose of enterprise 12
Aims 12
Objectives 13
Social and political pressures influencing enterprises 14
Social pressure 14
Political pressure 15
Broader ethical responsibilities 15
Range of goods and services 16
Enterprises selling services 16
Enterprises selling goods 17
Entrepreneurs 18
Reasons for starting your own enterprise 18
Mind-set of an entrepreneur 20
Being focused 20
Having passion 20
Showing motivation and dedication 20
Being innovative or inventive 21
Being proactive 21
Having confidence 21
Being flexible, adaptable and resilient 21
Being visionary and inspirational 21
Skills for success 22
Interpersonal communication skills 22
Planning 22
Time management 22
Negotiation 23
Prioritising tasks 23
Problem solving 23
Managing risks 23
Learning aim A: assessment practice 24
Market research: anticipating and identifying what customers want 26
Anticipating customer needs 26
Identifying customer needs 26
Identifying customer expectations 27
Offering value 27
Responding rapidly to enquiries 27
Providing clear and honest information 27
Market research and ongoing customer needs 28
After-sales service 28
Linking products to customers 29
Using market research to understand customers 30
Qualitative research 30
Quantitative research 31
Primary research: questionnaires, visits and observations 32
Why primary research is important 32
Your assessment 33
Primary research: interviews, focus groups and surveys 34
Interviews and focus groups 34
Surveys 35
Secondary research: online research and company materials 36
Advantages of secondary research 36
Disadvantages of secondary research 36
Online research 37
Company materials 37
Secondary research: market reports, government reports and the media 38
Market reports 38
Reports in trade journals and magazines 39
Government reports 39
Understanding competitors: price and quality 40
Main features that make products competitive 40
Understanding competitors: availability and unique features 42
Availability 42
Identifying competitors 44
Researching competitors 44
Making products stand out 45
Learning aim B: assessment practice 46
The impact of internal factors on costs: markets and customer satisfaction 48
Understanding internal factors 48
Understanding the market 48
Keeping customers satisfied 49
The impact of internal factors on costs: planning, financing and marketing 50
Effective planning and financing 50
Marketing and promoting the enterprise 50
Unforeseen human resource costs 51
The impact of external factors on costs 52
What happens when costs change 52
The impact of external factors: marketing, selling and regulations 54
Changes in marketing costs 54
Changes in selling costs 54
Changes in government regulations 54
The impact of external factors on revenue 56
Changes in revenue 56
Competitors 56
Consumer confidence 56
Consumer behaviour 57
Consumer legislation 57
Understanding situational analysis: SWOT 58
SWOT analysis 58
Understanding situational analysis: PEST 60
PEST analysis 60
Reasons an SME is successful 62
Top four aims 62
Reasons for the success of SMEs 63
Maintaining success 63
Measuring the success of an SME 64
Methods of measuring success 64
Learning aim C: assessment practice 66
Component 2: Planning for and Running an Enterprise 68
Generating ideas for a micro enterprise activity 70
Generating ideas 70
Selecting an idea 72
Choosing from a list of ideas 72
Doing a skills audit 74
Skills audit 74
Planning for a micro enterprise activity 76
Aims of micro enterprises 76
Goods and services 78
Goods or service to be sold 78
Planning features, benefi ts and USPs 78
Planning costings and pricing 78
Competitors 79
Identifying the target market 80
Market segmentation 80
Appealing to the target market 80
Reaching the target market 80
Target sales 81
Methods of communicating with customers 82
Selection of communication methods 82
How to design promotional material 83
Resources required 84
Types of resources 84
Risk assessment 86
Understanding risk assessment 86
Contingency plans 87
Pitching for a micro enterprise activity 88
Sharing your plan with an audience 88
What a pitch includes 88
Learning aim A: assessment practice 90
Putting your enterprise into action 92
Before you begin… 92
Operating your enterprise 92
Communicating about your product 92
Promotional activities 92
Production of promotional material 92
Distribution of promotional material 93
Setting up for trading 94
Obtaining components 94
Getting ready to sell 94
Preparing your location 96
Understanding your location 96
Managing your finances 98
What financial management involves 98
Forecasting costings 98
Handling money 98
Monitoring enterprise performance: financial records and sales 100
Using financial records 100
Customer sales 101
Monitoring enterprise performance: profit, cash flow and break-even 102
Monitoring profit 102
Monitoring cash flow 102
Monitoring break-even and margin of safety 103
Enterprise skills: working safely 104
Why working safely is important 104
Enterprise skills: managing your time 106
Learning to manage time 106
Using your initiative 107
Adjusting timings 107
Staying calm 107
Enterprise skills: problem solving 108
Types of problem 108
Sources of information 109
Identifying problems and solutions 109
Enterprise skills: communication 110
Communicating with customers 111
Monitoring your own performance 112
Creating a schedule and recording performance 112
Reviewing your micro enterprise 114
Meeting your aims and objectives 114
Areas to review 114
Reviewing your successes and failures 116
What went well 116
What went less well 116
Evidence to support your conclusions 117
Recommendations for the future 117
Personal and group performance 118
Evaluating performance 118
What have you learned? 120
Your own performance 120
Identifying development needs 120
Recognising where you can improve 120
Learning aim B: assessment practice 122
Component 3: Promotion and Finance for Enterprise 124
The promotional mix: methods and message 126
Promotion 126
The message 126
Successful promotion 127
Advertising 128
What is advertising? 128
The purpose of advertising 128
Methods of advertising 129
Sales promotions 130
The purpose of sales promotions 130
Methods of sales promotion 131
Personal selling 132
The purpose of personal selling 132
Methods of personal selling 133
Public relations 134
The purpose of public relations 134
Methods of public relations 134
Direct marketing 136
The purpose of direct marketing 136
Methods of direct marketing 136
Types of market 138
Targeting the right market 138
Market segmentation: demographic and geographic 140
Why markets are divided 140
Demographic segmentation 141
Geographic segmentation 141
Market segmentation: psychographic and behavioural 142
Psychographic segmentation 142
Behavioural segmentation 142
Factors influencing the choice of promotion 144
Size of enterprise 144
Budgetary constraints 144
Appropriateness for product/service 145
Target market 145
Learning aim A: assessment practice 146
Financial records 148
Financial documents 148
The importance of accuracy 149
Methods of payment 150
Payment methods 150
Sources of revenue and costs 152
Revenue 152
Costs 152
Financial terminology: turnover and profit 154
Understanding financial performance 154
Understanding terminology 154
Financial terminology: assets and liabilities 156
Understanding terminology 156
Statement of comprehensive income 158
The purpose of a statement of comprehensive income 158
Statement of financial position 160
The purpose of a statement of financial position 160
Profitability and liquidity 162
Cash vs. profit 162
Profitability 163
Profitability ratios 164
Understanding ratios 164
Liquidity ratios 166
Current ratio 166
Liquid capital ratio 166
Learning aim B: assessment practice 168
Cash inflows and outflows 170
Cash 170
Cash flow statements and forecasts 172
Why forecast? 172
Calculation for a cash flow statement 172
The information in a cash flow forecast 172
Sales and purchases 173
The importance of cash flow forecasting 174
The purpose of a cash flow forecast 174
Benefits and risks of cash flow forecasts 174
Cash flow problems 176
Why do some enterprises have poor cash flow? 176
Cash flow in different enterprises 177
Solving cash flow problems 178
Improving cash flow 178
Analysing cash flow forecasts 179
Introduction to break-even 180
Defining break-even 180
Calculating break-even 180
The importance of break-even 181
Interpreting break-even charts 182
Break-even charts 182
Putting together break-even charts 184
Break-even step by step 184
Margin of safety 185
Using break-even analysis to plan 186
Why figures change 186
Benefits of break-even analysis 187
Glossary 204
Key formulae for enterprises 208
Index 210
Back Cover Back Cover