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BTEC Tech Award Enterprise Student Book 2nd edition

BTEC Tech Award Enterprise Student Book 2nd edition

Helen Coupland-Smith | Catherine Richards | Andrew Redfern

(2018)

Additional Information

Book Details

Abstract

BTEC Tech Award Enterprise Student Book 2nd edition a

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
How you will be assessed 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
How you will be assessed 66
Component 2: Planning for and Pitching an Enterprise Activity 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, benefits 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
How you will be assessed 90
The micro enterprise pitch 92
The contents of your pitch 94
Presentation skills: delivering a professional pitch 96
Professional pitches 96
Presentation skills: the needs of your audience 98
Presentation skills: using visual aids 100
Communication skills 102
Responding to questions 104
Learning aim B: assessment practice 106
Giving feedback 108
Receiving feedback 110
Learning aim C: assessment preparation 112
Component 3: Promotion and Finance for Enterprise 114
The promotional mix: methods and message 116
Promotion 116
The message 116
Successful promotion 117
Advertising 118
What is advertising? 118
The purpose of advertising 118
Methods of advertising 119
Sales promotions 120
The purpose of sales promotions 120
Methods of sales promotion 121
Personal selling 122
The purpose of personal selling 122
Methods of personal selling 123
Public relations 124
The purpose of public relations 124
Methods of public relations 124
Direct marketing 126
The purpose of direct marketing 126
Methods of direct marketing 126
Types of market 128
Targeting the right market 128
Market segmentation: demographic and geographic 130
Why markets are divided 130
Demographic segmentation 131
Geographic segmentation 131
Market segmentation: psychographic and behavioural 132
Psychographic segmentation 132
Behavioural segmentation 132
Factors influencing the choice of promotion 134
Size of enterprise 134
Budgetary constraints 134
Appropriateness for product/service 135
Target market 135
Learning aim A: assessment practice 136
How you will be assessed 136
Activity 1 137
Activity 2 137
Financial records 138
Financial documents 138
The importance of accuracy 139
Methods of payment 140
Payment methods 140
Sources of revenue and costs 142
Revenue 142
Costs 142
Financial terminology: turnover and profit 144
Understanding financial performance 144
Understanding terminology 144
Financial terminology: assets and liabilities 146
Understanding terminology 146
Statement of comprehensive income 148
The purpose of a statement of comprehensive income 148
Statement of financial position 150
The purpose of a statement of financial position 150
Profitability and liquidity 152
Cash vs. profit 152
Profitability 153
Liquidity 153
Profitability ratios 154
Understanding ratios 154
Liquidity ratios 156
Current ratio 156
Liquid capital ratio 156
Learning aim B: assessment practice 158
How you will be assessed 158
Activity 1 159
Activity 2 159
Cash inflows and outflows 160
Cash 160
Cash flow statements and forecasts 162
Why forecast? 162
Calculation for a cash flow statement 162
The information in a cash flow forecast 162
Sales and purchases 163
The importance of cash flow forecasting 164
The purpose of a cash flow forecast 164
Benefits and risks of cash flow forecasts 164
Cash flow problems 166
Why do some enterprises have poor cash flow? 166
Cash flow in different enterprises 167
Solving cash flow problems 168
Improving cash flow 168
Analysing cash flow forecasts 169
Introduction to break-even 170
Defining break-even 170
Calculating break-even 170
The importance of break-even 171
Interpreting break-even charts 172
Break-even charts 172
Putting together break-even charts 174
Break-even step by step 174
Margin of safety 175
Using break-even analysis to plan 176
Why figures change 176
Benefits of break-even analysis 177
Glossary 194
Appendix 1: Key formulae for enterprises 198
Appendix 2: Examples of financial records 199
Index 203
Back Cover Back Cover