|
|
Business Survival, Profit and Growth
This resource is designed specifically for Unit 1 of the Edexcel BTEC National qualification, 'Introduction to Business'.
Aim:
Image: Who are the stakeholders when it comes to expanding airports? Try the Manchester Airport activity to find out. Copyright: Marcelo Silva
The aim of this resource is to develop the ideas covered in Introduction to Business Objectives, identifying the rewards that can be gained from setting up in business. By the end, you should understand:
- The definitions of profit
- That businesses need to survive before they can think of increasing sales
- As businesses grow, they can increase their share of the market(s) in which they operate
Resources:
Activity:
This Activity aims to help you understand the range of objectives that businesses may have.
- In order to survive and grow, firms need to ensure that their revenues exceed their costs; in this way they will be profitable.
- Go through the PowerPoint Presentation that accompanies this resource, making sure you understand the difference between costs and revenue and revenue and profit.
- Use the links in the Presentation to investigate the Biz/ed Glossary, which should be a useful aid.
- Carry out one of the two activities linked from the 'stakeholders' definition - either Manchester Airport's proposed second runway (http://www.bized.co.uk/learn/business/external/stakeholder/worksheet.htm) or Cameron Balloons' stakeholders(http://www.bized.co.uk/virtual/cb/factory/purchasing/worksheets3.htm).
- An additional activity could be as simple as a role-play where the group is split into two notional business organisations. A teacher oversees the trading activity in order that one business gains more market power than the other. The stronger firm then exploits its power by setting premium prices. This results in higher profit for the dominant firm.
|
