Edexcel Business enterprise

GCSE
Business 1BS0 Unit 1 – Enterprise and
entrepreneurship

1
Objectives
• Understand the role of business enterprise and the
purpose of business activity:
• to produce goods or services
• to meet customer needs

• Understand how businesses add value in respect of:

• branding
• design
• quality
• convenience
• unique selling points
Business enterprise
Unit 1: Enterprise and entrepreneurship

Business activity
• What do these businesses do?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Business defined
• A business is an organisation
that offers for exchange, the
goods and services that
satisfy consumers needs
and wants
• The exchange is typically
for money
• What is the difference
between goods
and services?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Goods/products and services

• Products are physical, tangible
items such as a car, a pair of
scissors or a television set
• Services are non-physical
and intangible, like a taxi
journey, a haircut or a
television programme
• Suggest one product and
one service offered at a
vehicle repair station
Business enterprise
Unit 1: Enterprise and entrepreneurship

Needs and wants

• A need is something that is
essential to survive
• A want is a luxury item that we
desire, but is not essential
to survival
• What are the five basic
human needs?
• Give five examples of goods
or services that we ‘want’ but
do not ‘need’
Business enterprise
Unit 1: Enterprise and entrepreneurship

Worksheet 1
• Complete Task 1 on the worksheet
Business enterprise
Unit 1: Enterprise and entrepreneurship

Meeting customer needs

• Meeting customer needs is satisfying or exceeding
customer expectations in order to encourage a
purchase over a competing business
• The growth of ecommerce and online
shopping has changed some
customer needs
• Consumers have come to expect
a fast, efficient and reliable service
• How else can a business
ensure they meet
customer needs?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Added value
• Added value is the difference between the cost of
the inputs involved with producing a product, and the
price it is sold for
• An average takeaway coffee sells for £2.50
• The cost of coffee beans used is £0.08
• Turning coffee beans into a takeaway
coffee adds value to the basic raw material
• However, the total cost of selling a cup
of takeaway coffee is approximately £2.20
• What other costs are involved in
selling a takeaway coffee?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Adding value to raw material

• Adding value is fundamentally making a product or
service more valuable to the consumer than it is in
its raw form
• How many different ways can you think of, that businesses
add value to the basic potato?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Added value – Production

• Adding value is the way that a business makes their
product or service stand out against the competition

Added value

• How do competing businesses add further value to

their potato-based products?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Worksheet 1
• Complete Task 2 on the worksheet
Business enterprise
Unit 1: Enterprise and entrepreneurship

Methods of adding value

• Methods a business can use to add value:
• Branding
• Design
• Quality
• Convenience
• Unique selling point

• Why can Adidas® charge

a higher price compared
to similar unbranded
products?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Branding
• Branding is the name or image that identifies one
businesses product or service as unique
• Which businesses do the following brand logos represent?

• Why does strong branding add value for the consumer?

• How does strong branding benefit a business?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Design
• Good product and packaging design adds
value to a product
• A made-to-measure tailored suit adds
value compared with an ‘off the peg’
suit from a high street store
• The Little Trees® car air freshener
has a distinctive design that gives
the product a unique identity and
adds value
• What other examples of unique
product or packaging
design can you think of?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Quality
• A business can add value
through the quality of the
product or service it offers
• A high level of workmanship
adds value
• Perceived or actual high
quality suggests reliability
and longevity
• How can a service business
ensure it offers consumers
high quality?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Convenience
• Offering consumers increased convenience can
enable a business to increase market share and
charge a higher price in a price sensitive market
• With no queues or checkouts, Amazon Go
has introduced a new level of convenience
to the grocery sector in the United States
• What impact will Amazon Go have
on competing businesses?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Unique selling point

• A unique selling point (USP) is a feature that
differentiates a business from its competitors
• Domino’s Pizza offers delivery within 30
minutes or a free pizza
• The chocolate that ‘melts in your mouth,
not in your hand’ was the famous USP
used by Mars
• Which business has used the slogan
‘eat fresh!’ and why is this a clever
USP to promote the brand?
• What other products or services
with USP’s can you think of?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Case study: Spire Cycles

• Founder Matt Gibbons is a
bike mechanic with a USP:
• “Some refer to me as the bicycle
engineer, as I am able to repair the
things others cannot”
• “All wheels built by me are all built
to the same high standard. This
adds more time, but ensures an
accurate and durable wheel is
produced which also maximises
performance. With wheels, detail
is key.”
• What USPs do Spire Cycles offer?
Business enterprise
Unit 1: Enterprise and entrepreneurship

Plenary
• The role of business enterprise and the purpose of
business activity has been considered in terms of:
• to produce goods or services
• to meet customer needs

• Methods business use to add value to products and

services have been explored in respect of:
• branding, design, quality, convenience, unique selling points
Business enterprise
Unit 1: Enterprise and entrepreneurship

Worksheet 1
• Complete Task 3 on the worksheet
Business enterprise
Unit 1: Enterprise and entrepreneurship

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