BOOK
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 |