LEAF

Leaf, an independent clothing shop in Newcastle Upon Tyne, specialises in

menswear, ladieswear, footwear, and accessories. Leaf was established in
1978 by the owner, Brian, at 23. Leaf now employs over 20 staff, including a
store manager and assistant manager.

Leaf have served Newcastle for over 40 years, providing unique brands and
personalised, friendly service. Despite the prevalent trend of online sales, Leaf
remains committed to in-person interactions. They don’t sell online, valuing
the experience and aiming to get it right the first time. They prioritise personal
service and meeting customers face-to-face to ensure customer satisfaction.

TUTOR2U/
EDEXCEL A-LEVEL BUSINESS PAPER 3 2024
 LEAF
1 Leaf has estimated that the price elasticity of demand for their
clothing is -0.8. Explain the potential impact of this on the prices
that Leaf might adopt for their clothing

2 Outline the factors that could influence the price elasticity of

demand for Leaf's clothing

3 What difficulties may Brian have experienced when moving

from entrepreneur to leader? 12 marks

TUTOR2U/
EDEXCEL A-LEVEL BUSINESS PAPER 3 2024
Use the slides below to revise the content from
Theme 1 and answer Question 3 12 Marker
 Edexcel A2
Business
1.5.6 Moving from
entrepreneur to leader
From Edexcel
a) The difficulties in developing from an entrepreneur to a leader

The extra guidance (getting started guide) from the exam board explains that
the difficulties in moving from entrepreneur to leader may include:
• The need to delegate
• Trust and verify
• Learning to listen
• Having an open mind
• Being less reactive
• Developing emotional intelligence
Starter
• Imagine you started a market stall selling
photos that you have had made into greetings
cards.

• The business has been so successful you need

to take on extra staff. What are your first 3
decisions?
The difficulties in developing from
an entrepreneur to a leader
Definition: Entrepreneur
• An entrepreneur is a person who sets up a business and takes risks in
the hope of a profit or reward
Definition: Leader
• The action of leading a group of people or an organisation, or the
ability to do this.

• To lead: to be in charge of, to show direction, to be superior to others.

 Remember you need to Learning to
demonstrate the qualities of
leader Delegate
Emotional Trusting
intelligence Work as a team
others
to create the
Tallest tower
using
newspaper
Be less Listen to
reactive others
Have an
open mind

1___________________
2___________________Emotional
3__________________
4__________________intelligenceRank each member of your others
1___________________
2___________________
3__________________ Be less
4__________________
reactive
1___________________
2___________________
3__________________
4__________________
1___________________
2___________________
Learning to 3__________________
4__________________
Delegate
Trusting 1___________________
2___________________
3__________________
group in order 1-4 or 1-5
depending on the number 4__________________
of people in your group.
1 Demonstrating the
quality most of a leader at
1___________________
4 Demonstrating the
quality least Listen to 2___________________
3__________________
others 4__________________
Have an
open mind
Learning to delegate
• When a business owner starts out as a
sole trader they may be working on their
own.
• When the business grows an entrepreneur
will need to learn to delegate tasks out to
others so that they can focus on the more
strategic areas of the business, such as
developing a new product
• Delegation means giving authority to
others to carry out tasks (like permission)
• Can you delegate? Have you ever
delegated a task to someone else?
Trusting others
• When hiring employees or taking a
business partner an entrepreneur
will have to learn to trust others
• Often this will mean letting go of an
idea that they have been nurturing
or delegating tasks out to new
employees
• Trust is important in relationships
with customers.
• Can you explain this in the context of
an independent café and of Heinz?
Listen to others
• A good entrepreneur when moving to
leader will need to discuss bigger
decisions with other stakeholders in the
business
• For example the entrepreneur may need
to listen to; a joint owner, a manager, an
employee who may have good ideas, a
customer with a complaint or an
investor
• Good leaders take the opinions of others
into account and allow them to help
with the business Watch the video – how did “listening to others” help
him in setting up his business?
• What would the opposite of this mean?
Have an open mind
A manager is open-minded if they:
1. Accept new suggestions, comments and
questions
2. Are always in search of new ideas and
innovation
3. Are familiar with their market and potential
competitors
4. Are motivated and flexible
5. Are open to learning new skills
6. Have a broad looking perspective
7. Have a flexible mind adaptable to various
situations
8. Can make decisions based on sufficient
knowledge
9. Are ready to consider and receive new ideas
• Have a look at the list on the left
• Tick all those that apply to you
• How open minded are you?
• How did you score?
• 1-4 Very closed to new ideas, stuck in old
ways, likes routine, unlikely to innovate,
slow to make decisions
• 4-7 Somewhat open minded, may try a
few new ideas but may need more
information before jumping in
• 8-9 Very open to new ideas, very
innovative and creative and keen to try
new things
 Open Minded quiz
1. Imagine your local online newspaper is offering you the chance to lunch with and interview a famous dictator, known
for his mistreatment of women.
• a. You turn down the assignment—you could never feel comfortable talking with him.
• b. You accept it—it's a great chance to learn something about how a dictator's mind works.
• c. Maybe, if you don't have to eat with him, which feels like you'd be approving of him.

2. You've decided it would be good to spend time volunteering—but where?

• a. You've always loved crafts and kids—you decide to get an arts class going for some kids.
• b. Your friend is involved in an anti-litter campaign—you pick up rubbish with her on a Saturday morning.
• c. You've always felt a little awkward around those in wheelchairs—you ask to help out at a local rehab facility.

3. You're asked to play the part of a dolphin in a school play.

• a. What fun! The idea intrigues you—you immediately try to think like a sea creature.
• b. No way. You hold out for leading lady, the part you'd prepared for.
• c. You'll do it only if everyone else plays animals too.
4. You're on your way to an interview for a part-time job at the far end of your city.
• a. You leave yourself plenty of time and take a new route. Getting a little lost can be so refreshing!
• b. You take the same route you've been travelling since forever.
• c. You notice a neat new jewellery shop on your way and make a mental note to visit it soon.

5. Good pals are visiting your house on Friday night, and you've promised to feed them.
• a. You follow a familiar recipe exactly.
• b. You make something tried and true, but think, "What would happen if I added a pinch of cilantro?"
• c. You try fixing a new dish—what are friends for if not to experiment on?

6. You visit a new art museum where some of the paintings are odd and even off-putting.
• a. You rush by the weirder paintings, asking yourself, "What was that artist thinking?"
• b. You spend extra time before the odder ones, thinking, "Hmm, I wonder what that artist was trying to get across here?"
• c. You decide to go home and catch up on your shows.

7. A foreign-looking woman shows up at your library’s book club. Her bright red, curvy fingernails are at least two inches long.
• a. You immediately decide she's a not smart, and pay her no attention.
• b. You ask around to find out if that's the style where she comes from.
• c. You listen closely when she talks and give the benefit of doubt to her appearance
Open Minded quiz
• 8. Your brother presents you with an oak shelf he made himself.
• a. You shove it in the closet—you have absolutely no use for such a thing.
• b. You ask his help to put it up on a door—it's the perfect size for draping extra belts over.
• c. You discover it stands up—you place it on your dresser and use it as a greeting card display.
• 9. It's family vacation time but money is short.
• a. You suggest the entire family get to know each other better by visiting local spots this year.
• b. You vote for "fundraising" and suggest having a huge family garage sale.
• ARTICLE CONTINUES AFTER ADVERTISEMENT
• c. You tell everyone they should've planned the budget better.
• 10. You watched a film with an uncertain ending: maybe the heroine marries the guy or else she might go off
on her own.
• a. You have no trouble figuring out the ending that feels "right."
• b. You'll probably come up with even more possible endings as you mull the story over later.
• c. How frustrating! Why don't they just tell you how the story turns out and be done with it?
 (22-30) Mental Adventurer. You're quite open to experience.
"You’re acting mindfully when you don't simply dismiss

Open Minded quiz activities and thoughts because they seem unappealing or even
silly at first," says Ellen Langer, Ph.D., a Harvard psychologist
and author of Mindfulness and Mindful Learning. The more
open-minded you are, says Langer, the more imaginative you
SCORING probably are, and the more creative you allow yourself to be.
You are able to keep conflicting ideas in your mind. You’re able
• 1. a/1, b/3, c/2 to go beyond solving problems into discovering new ideas.
• 2. a/2, b/1, c/3
(16-21) Half-mindful. You're got the potential to be more open-
• 3. a/3, b/1, c/2 minded, but you hesitate to let go of your old ideas and break
• 4. a/3, b/1, c/2 new ground. Maybe you may care a little too much about what
others think. "You can learn not to judge people and ideas too
• 5. a/1, b/2, c/3 quickly," says Langer. "Keeping an open mind reveals so many
• 6. a/2, b/3, c/1 possibilities."

• 7. a/1, b/2, c/3 (10-15) Rut-Sticker. You tend to be a follower. Langer warns,
• 8. a/1, b/2, c/3 "Be careful not to let yourself become a mindless robot." Spend
a day thinking about everything you do: are you just doing the
• 9. a/3, b/2, c/1 same old thing you've always done or could you liven up the
• 10.a/2,b/3, c/1 way you do things with a slight effort? Talk to someone new, try
a new route, put yourself in someone else's shoes and see
through their eyes.
Be less reactive
• A true business leader will be less
reactive to dynamic markets and
more proactive
• This means setting trends, being able
to see a gap in the market, moving
forward with a business idea ahead
of the competition
• First to market always has
competitive advantage
• Read this article and find out how
Rachel Riley was proactive in her
business
Develop emotional intelligence

• Self-Awareness is your ability to accurately

perceive your emotions and stay aware of
them as they happen.
• Self-Management is your ability to use
awareness of your emotions to stay flexible
and positively direct your behaviour.
• Social Awareness is your ability to
accurately pick up on emotions in other
people and understand what is really going
on.
• Relationship Management is your ability
to use awareness of your emotions and the
others’ emotions to manage interactions
successfully.
Discussion
There are no sample questions for this topic. Instead read the case study and discuss how Lord Somerleyton
may have difficulties in moving from entrepreneur to leader
Glossary
• Entrepreneur; a person who sets up a business, taking financial risks
in the hope of making a profit
• Leader; a person who has vision and followers
• Emotional intelligence; to be able to recognise, use, understand and
manage emotions in a positive way to reduce stress