Case Studies 2.1.6-2.1.10Use this to self assess and prepare actual businesses for

questions which ask:“For a business you have studied”

Amazing Working Conditions

- Free Gourmet Food- Pool Table, - Table Tennis- Computer Games- Laundry Service- Free Haircut- Gym and Swimming

Training and Development

-Qualifications paid for

-Lectures at Google Campus

Good PayGoogle workers get paid a fair wage

Which factor would be the most successful in

creating a good working

relationship?

2.1.6 Employers/employees

Enterprising:Workers:Work in teamsSuggest ideas to improveWork on new projectsWork flexible hours

Additional Notes2.1.6 Employers/employees – how they operate in enterprising ways, develop their working relationships and meet their various rights and responsibilitiesToday’s workforce must be prepared to be more innovative and creative to stay ahead of potential competitors.You will need to be able to:• identify how employees can assist businesses operating in an enterprising way – e.g. suggestion schemes, working on new projects, being flexible in terms of their job• explain how businesses can be seen to operate in enterprising ways – e.g. taking risks, being innovative in how they operate (commerce, working practices)• evaluate the possible benefits to businesses of operating in an enterprising way – e.g. Increased market share, increased sales and profits, improved reputation. Acting in an enterprising way is only one small part of the employee/employer relationship. In addition, you must be able to:• identify what employees expect from employers – e.g. suitable working conditions, contract of employment, equal opportunities, safe working conditions• identify what employers expect from employees – e.g. punctuality, adherence to procedures, fulfilment of job role, complying with health and safety procedures• explain the legal framework that employees/employers must operate within – e.g. The Employment Rights Act (1996 or as amended), The Equality Act (2010 or as amended)• assess how employees and employers develop a good working relationship – e.g. meetings, appraisals, training, good communication, physical working environment and facilities, reward schemes such as employee of the month.You may be asked to give an example of a business you have studied.

My Revision Notes

2.1.7 Changing Use of ICT

Benefits of Upgrading?Drawbacks of Upgrading?

Old Trafford Bakery have upgraded their current ICT so that:

What are the:

All sales are made through an electronic till – this tracks sales of popular and unpopular items

The bakery ovens are digital for accurate temperatures for cooking breads and cakes – quality of products

It has plans to update the website to include:• Social Networking• Online Ordering

Accounts used to be done on paper ledger books.Now they are done online using spreadsheets – paperless office / digital record / quick and efficient

A new bakery oven has been ordered which requires only one employee to operate it and does the job of 3 employees – efficiency / ethical?

Additional Notes2.1.7 Changing use of ICT – in business and economic activitiesBusinesses can help themselves become more efficient by using the latest advances in technology in both their business and economic activities.You will need to be able to:• identify different types of ICT – e.g. personal computers and networks, spreadsheets, word processing, databases, internet, e-commerce, email• explain the purpose of ICT in business activities – e.g. to communicate, to produce spreadsheets to monitor stock levels, to record customer information• explain the use of ICT in economic activities – e.g. e-commerce for online sales, accounting software• evaluate the potential benefits/drawbacks of upgrading ICT provision to a business – e.g. labour-saving benefits, cost-saving benefits, training of employees, paperless office, growth of e-commerce.You may be asked to give an example of a business you have studied.

My Revision Notes

2.1.8 Uncertainty – risk, reward and change

Technological Advancement

New Regulation

New CompetitorChange in Economic Conditions The year is 2007. Nokia

dominate the mobile phone market. Apple release

their new Smart Phone: the i-Phone.

The rest is history.

The year is 1997 and Netflix is established as an online streaming service. By 2013 it has 33million subscribers.Blockbuster did not offer this technological service. Look what happened

The year is 2007 and the UK Government has decided to ban

smoking inside public areas including Pubs.

The number of people attending pubs drops sharply

It is 2007 and the UK Economy is suffering along with the rest of the World.

Additional Notes2.1.8 Uncertainty – risk, reward and changeThe environment that businesses operate in is uncertain, challenging and dynamic. Businesses must often take risks, for example making changes to their business practices in order to be rewarded in the long term.You will need to be able to:• identify possible reasons why the business environment is uncertain – e.g. changing customer demands, changes in the economy• explain the ways in which businesses can change existing business practices in order to be successful – e.g. change of ownership, change of business activity• evaluate the consequences to businesses of not making changes/taking risks – e.g. being left behind by competitors, losing market share.You may be asked to give an example of a business you have studied.

My Revision Notes

2.1.9 Business within society – ethics and sustainability

Against Animal TestingEvery one of our products is animal cruelty free and vegetarian. In fact we were the first international cosmetics brand to be recognized under the Humane Cosmetics Standard for our Against Animal Testing policy.For Trading Fairly We believe in fair trade to such an extent, that over 20 years ago we set up our own fair trade programme, called Community Fair Trade. We believe this level of commitment to trading fairly is unique in the cosmetics industry. Community Fair Trade now works with over 30 suppliers in more than 20 countries, providing over 25,000 people across the globe with essential income to build their futures. Most of our products contain Community Trade ingredients.Our Five Core Values The Body Shop is a leader in promoting greater corporate transparency, and we have been a force for positive social and environmental change through our campaigns around our five core Values: Support Community Fair Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, and Protect Our Planet.Our Charitable FoundationWe also have our own charity, The Body Shop Foundation. Launched in 1990 (registered charity no. 802757) we give financial support to pioneering, frontline organisations that otherwise have little hope of conventional funding. The Foundation's focus is to assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection.

"The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed. “Anita Roddick. Human Rights Activist. Founder of The Body Shop

www.thebodyshop.co.uk/values/ProtectPlanet.aspx

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Additional Notes2.1.9 Business within society – ethics and sustainabilityApart from the legal framework within which businesses must operate, they also need to be mindful of their ethical responsibility and the need to be sustainable.You will need to be able to:• explain the meaning of ethics• explain the ways in which businesses can be seen to be operating in an ethical manner - e.g. producing goods that are fit for purpose, not exploiting workforce/child labour• evaluate the consequences to businesses of not operating in an ethical manner – e.g. bad publicity, poor reputation• explain the meaning of sustainability• explain ways in which a business may act in order to achieve sustainability – e.g. agriculture, fossil fuels.You may be asked to give an example of a business you have studied and evaluate how it can be seen to be operating in an ethical manner.

My Revision Notes

2.1.10 Use of relevant terms, concepts and methods

Interest RatesThe reward for having money in the bank – paid by the bank on savings - SAVERS WANT HIGH INTEREST RATES

The % you have to pay on borrowing money – paid by the borrower to the bank – BORROWERS WANT LOW INTEREST RATES

Inflation:General increase in prices over time.Cost of making products increases – should the business increase the prices or make less profit? Unemployment:

Higher unemployment means less money in the economy from wages. Less overall demand for all products. Sales fall. Businesses may need to make employees redundant – causing more unemployment.

An increase in employment means more money in the economy from wages. Overall demand for all products increases. Sales increase. Businesses may need to expand to meet demand creating jobs and reducing unemployment.

2.1.10 Use of relevant terms, concepts and methods

Exchange Rates:“The price one currency can be bought for with another, e.g. £1 buys you €1.23”If the pound gets stronger then you can buy more euros for £1, e.g. £1 = €1.30:S STRONG P POUNDI IMPORTSC CHEAPE EXPORTSD DEAR (Expensive)

A strong Pound means that imports are cheaper to buy:IMPORTS• UK Customers buy from abroad (sales for UK

businesses ↓)• Businesses can buy raw materials cheaper

from abroad (Costs ↓)EXPORTS• If the business sells abroad then foreign

customers find UK goods expensive (sales for UK businesses ↓)

Additional Notes2.1.10 Use of relevant terms, concepts and methods - to understand business and economic behaviourHowever businesses manage their own activities, their success will depend on conditions in the economy as a whole. These conditions can affect businesses and how they behave.You will need to be able to:• identify and describe a number of economic factors – e.g. interest rates, inflation, exchange rates• evaluate the possible impact of changes in such economic factors (both up and down) on business behaviour - e.g. an increase in interest rates means increased costs• assess how businesses can react to such changes in economic factors – e.g. an increase in interest rates may mean that a business has to look at saving money in other areas of the business.

My Revision Notes