http://www.tutor2u.net/business/gcse/external_environment_introduction.htm
PEST
Sunday, 16 December 2012
Sampling Methods
There is a chance you might get asked about different sampling methods as highlighted by the exam board below:
"Define primary (quantitative and qualitative) and secondary research and why they are used, eg to quantify demand and gain insight into consumer behaviour. In addition, students can use a business textbook to define methods of research.
"Define primary (quantitative and qualitative) and secondary research and why they are used, eg to quantify demand and gain insight into consumer behaviour. In addition, students can use a business textbook to define methods of research.
Identify problems that arise with
small sample sizes; and the sampling method used, eg convenience sampling and
potential bias."
Here is some information on different sampling methods that could be used by start ups and what sampling is
Plus a case study
There is also a revision quiz here you can use to test yourselves
Saturday, 15 December 2012
Y11 Task
You have been pl;aced into a group and assigned a topic to research. You will create
You will have access to the internet and the library and should use the below link to the specification. I expect you to have used this to inform students about what they need to learn about.
The winning group gets...
- An introduction to this topic with a PowerPoint
- A detailed hand-out which covers what the topic is about and then details what they need to learn about that topic.
You will have access to the internet and the library and should use the below link to the specification. I expect you to have used this to inform students about what they need to learn about.
You will assign your own manager and all students are expected to contribute. Your presentations will occur on Tuesday and you will have a 10 minute slot to fill.
All PowerPoints should be ready on a usb and hand-outs printed in your own time before the lesson. Groups failing to be prepared will have extra tasks given for over the Christmas break.
The winning group gets...
Tuesday, 11 December 2012
Why EdExcel are wrong to call it Market Mapping
http://www.tutor2u.net/blog/index.php/business-studies/comments/market-mapping-or-not-market-mapping
Clearly you should use the EdExcel version for your exam but if you go on to study business at university or go into industry remember everything written in a textbook is not always correct.
Just ask Medis about Venture Capitalists and added value...
Clearly you should use the EdExcel version for your exam but if you go on to study business at university or go into industry remember everything written in a textbook is not always correct.
Just ask Medis about Venture Capitalists and added value...
So you think you know market mapping?
Then try this 8 marker for size...
Today's task will require you to create a plan to answer this question. We will discuss your ideas for how best to get maximum marks. Then you will compete for the best answer!
Your plans went well today and below is the mark scheme available for future reference. Remember market mapping is all about spotting gaps in markets and testing consumer perceptions. You use it to analyse your position compared to competitors. Just rmember the drawbacks and how it may be unsuitable to entrepreneurs who do not have the resources & experience to do it properly or pay someone else to do it.
“Market mapping consists of identifying key variables about a product, plotting where existing brands or suppliers are in terms of combining the variables, then identifying any gaps in the market”.
Sunday, 9 December 2012
Model Answer (Market Mapping)
žWhat are the benefits to a restaurant of using market mapping and what are the implications in them positioning their business incorrectly(i.e. Setting high price for poor quality)?
If a restaurant uses market mapping, the restaurant is able to position their business in the market so that consumers are aware what to expect from different restaurants. e.g The Cheesecake Factory is positioned in a relatively high price with a high quality expectation from consumers. It allows a restaurant to establish the correct targeted consumers who are willing to pay certain prices, expect specific product quality etc. If a business positions itself incorrectly, consumers may not be offered the quality of food they expect for the price they are paying eg. low quality foods for high prices. The restaurant may ultimately suffer a decrease in demand and therefore profits if the pricing strategy does not match the quality of food available on the menu. It is hard then for a business to re-position themselves without losing creditably or their established customer base. With loss of profits and demand, the business may be forced to change their complete brand image, cut costs through lowering quality of meals or even cut staff to maintain business operation with decreased revenue.
If a restaurant uses market mapping, the restaurant is able to position their business in the market so that consumers are aware what to expect from different restaurants. e.g The Cheesecake Factory is positioned in a relatively high price with a high quality expectation from consumers. It allows a restaurant to establish the correct targeted consumers who are willing to pay certain prices, expect specific product quality etc. If a business positions itself incorrectly, consumers may not be offered the quality of food they expect for the price they are paying eg. low quality foods for high prices. The restaurant may ultimately suffer a decrease in demand and therefore profits if the pricing strategy does not match the quality of food available on the menu. It is hard then for a business to re-position themselves without losing creditably or their established customer base. With loss of profits and demand, the business may be forced to change their complete brand image, cut costs through lowering quality of meals or even cut staff to maintain business operation with decreased revenue.
Model answer-supply
Which of the following is a direct determinant of the supply of food?
A Level of technology
B Growth in consumer incomes
C Advertising to consumers
D Fashion, tastes and preferences
Model answer:
A
Firstly supply is the amount a producer is willing to produce or provide at a given price. The level of technology determines supply of food directly because the more advanced the technology, the more quantity can be produced. For example the use of Genetically Modifying food can be used to increase to increase agricultural yield. Furthermore fashion etc is a demand factor and influences supply onl indirectly, the same can be said for consumer incomes and advertising.
A Level of technology
B Growth in consumer incomes
C Advertising to consumers
D Fashion, tastes and preferences
Model answer:
A
Firstly supply is the amount a producer is willing to produce or provide at a given price. The level of technology determines supply of food directly because the more advanced the technology, the more quantity can be produced. For example the use of Genetically Modifying food can be used to increase to increase agricultural yield. Furthermore fashion etc is a demand factor and influences supply onl indirectly, the same can be said for consumer incomes and advertising.
Model answer
4 a) In november 2009, the unemployment rate in the district of Handsworth, Birmingham, reached 15% - its highest for over 10 years.
The most likely impact of high local unemployment on a small business would be
A) rising variable costs
B) problems recruiting staff
C) a significant fall in sales of luxury products
D) an increase in profits if the firm imports products
Answer ( C )
b) Explain your answer
The most likely impact of high local unemployment on a small business would be
A) rising variable costs
B) problems recruiting staff
C) a significant fall in sales of luxury products
D) an increase in profits if the firm imports products
Answer ( C )
b) Explain your answer
High levels of local unemployment means there are more people not working than there are this who are earning an income. Luxury goods are not necessities, therefore as income drops, demand for these items also tend to drop. If there are large amounts of people unemployed, these consumers will not be able to afford these goods as there is a smaller percentage of those working and earning an income. Demand for these unnecessary products will drop significantly meaning less luxury goods will be sold.
Model Answers
Costs of advertising is a business cost and if this cost decreases, overall business costs would decrease with it. To cause a rise in pasta prices, the cost of advertsising would have to increase. This means C is not likely to explain a price increase in pasta. A Subsidy is a form of grant given by the governemnt to producers in order to rise output and reduce production costs. D is therefore incorrect as a reduction in subsidies would explain a rise in pasta prices. Also, A, as producers are switiching to an alternative products, this would reduce the supply of wheat causing the prices of wheat required to make pasta to increase. Ths means A is also incorrect.
Use the case study below to answer the following question:
Bliss Conceptions
Bliss Conceptions is a small business that operates at home and has been in business for about a year. The company specializes in a variety of handmade gifts and keepsakes such as birthdays and weddings. These include wooden names, candles, signature books and invitations. The owner of Bliss Conceptions, Jodie, is wanting to expand her customer base and has decided to invest in the assistance of a upscale marketing consultant to help Bliss Conceptions get it’s products to a larger market. The marketing consultant suggested that Jodie does some market research to find out prices of her competitors to avoid loss of demand with higher prices then leading competitors in the handmade and keepsake market.
Evaluate the likely value of penetration pricing to Bliss Conceptions in their expansion (8 marks)
Penetration Pricing is when a business such as bliss conceptions, enters their products in the market with a lower price than anticipated to try and gain as much demand for the product as possible and attract customers. Penetration pricing will help Bliss Conceptions enter the market selling keepsakes and wooden names at a lower price to competitors. This will then generate demand for Jodie’s products and to be able to keep up with the low market price, it will enable Bliss Conceptions to focus on minimising unit costs right from the start. Jodie would have also encouraged word-of-mouth recommendation for her candles and cards because of the attractive pricing. However, with the use of penetration pricing, Jodie may struggle to keep production costs low enough to still make a profit when entering the market with low prices. Jodie may not be able to get cheaper supplies such as glue, ribbon and paint and may be forced to may a loss in order to gain a profit in the future. Jodie also undertook market research which means that the results of her market research would also determine whether or not her pricing strategies would have to change to suit the prices of competitors. Therefore, even though price penetration is useful for Jodie to gain enough demand in expanding, price penetration will only be useful if her market research has concluded that lower prices are needed to compete with other keepsake and crafts businesses already established.
Y12 Business - Revision Notes
Hi Y12's
There are comprehensive notes in the A-Level Business Studies room - Resources - Mrs Oates' lesson resources - Revision Notes.
Enjoy!
Wednesday, 5 December 2012
Factors Affecting Supply & Demand
Demand = PASIFIC
Population
Number of firms
Technology
Subsidies
Weather
Costs of production
Population
Advertising
Substitutes
Income (Disposable)
Fashion and Taste
Income tax
Complements
Substitutes
Income (Disposable)
Fashion and Taste
Income tax
Complements
Supply = PINTS WC
Productivity
Indirect
taxesNumber of firms
Technology
Subsidies
Weather
Costs of production
Y12 Economics Questions
- Explain would happen to the prices of shreddies potentially if there was a storm across the main wheat plantations globally. (4 Marks)
- Explain the effect of a war in Saudi Arabia on world Oil prices. (4 Marks)
Write your answers in the comments below and bring in a supply and demand diagram you have drawn to explain the first question.
Monday, 3 December 2012
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